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Calculated Risk: NY Fed Q1 Report: Total Household Debt Increased in Q1 2021, Mortgage Origination Credit Scores Edged Up

5/12/2021 11:37:00 AM The Federal Reserve Bank of New York s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The report shows that total household debt increased by $85 billion (0.6%) to $14.64 trillion in the first quarter of 2021. The total debt balance is now $344 billion higher than the year prior. While mortgage, auto loan, and student loan balances have continued to increase, credit card balances have substantially decreased. The Report is based on data from the New York Fed s Consumer Credit Panel, a nationally representative random sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data.

Who owes student debt? Older people and black students among fastest-growing groups of borrowers

Who owes student debt? Older people and black students among fastest-growing groups of borrowers
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Who Pays What First? Debt Prioritization During The COVID Pandemic

this post authored by William J. Arnesen, Jacob Conway, and Matthew Plosser Since the depths of the Great Recession, household debt has increased from a low of $11 trillion in 2013 to more than $14 trillion in 2020 (see the New York Fed Household Debt and Credit Report). In this post, we examine how consumers’ repayment priorities have evolved over that time. Specifically, we seek to answer the following question: When consumers repay some but not all of their loans, which types do they choose to keep paying and which do they fall behind on? We use data from the New York Fed’s Consumer Credit Panel to construct a “head-to-head conflict among different types of debt. In other words, if a consumer chooses to repay all of their auto loans, while defaulting on their consumer debt, that would constitute a “win for auto loans over consumer debt. We then run a logistic regression to predict the overall strength of each debt type, focusing on three categories: auto loans, mort

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