All forms of household debt, outside of mortgages, are up since the third quarter of 2008 according to the New York Federal Reserve’s second quarter report on household debt.
The Washington Post ran a blog article discussing the findings of the report. Some of the highlights:
– Mortgage debt is falling substantially, but unfortunately, “that’s where all the movement is in the falling levels of consumer indebtedness.”
– This fall in mortgage debt is mostly due to foreclosures and short sales since “the decline in total household debt is most pronounced in some of the states where the housing bubble blew the biggest,” including “California, Nevada, Arizona and Florida.”
– “Of the major types of household debt, the rate of delinquent payments is highest among student loans, and the rate has risen over the last two years. . . from 7.55 percent in the second quarter of 2008 to 10.9 percent in 2013.”
If your household debt is rising and you are struggling to make payments, contact a debt settlement attorney who can affordably and responsibly negotiate with your creditors for settlements.