U.S Credit card mortgages loan: US debt crisis deepens: Families now owe a record $18.6 trillion as credit cards, mortgages hit all-time highs

US household debt rose to a record level of $18.59 trillion. According to the report, the majority of household debt comes from mortgage debt, credit card debt, student loans and auto loans. Over the past 12 months, household debt has increased by more than $642 billion, including $197 billion in the third quarter.

Mortgage debt increased by more than $137 billion, reaching $13.07 trillion. Credit card debt has increased by $24 billion, reaching an all-time high of $1.23 trillion, according to data reported by The Kobeissi Letter.

Student loans increased by $15 billion to a record $1.65 trillion. According to the report, automobile loans increased by 11 billion dollars to 1.66 trillion dollars.

The US Federal Reserve cut its key interest rate target by a quarter point last month.

With the latest interest rate cut, credit card users will save approximately $1.92 billion in interest over the next 12 months, according to WalletHub data. It usually takes one to two billing cycles to see an interest reduction reflected on your credit card statement. Rates on new credit card offers remain high, according to Matt Schulz, LendingTree’s chief consumer finance analyst; It dropped from 24.92 percent at the beginning of the year to 24.19 percent. “Regardless of what the Fed does in December, they will only fall further between now and the end of the year,” Schulz said. Interest rates on mortgages tied to 10-year U.S. Treasury bonds have fallen by nearly three-quarters of a percentage point this year, which is good news for borrowers. According to Bankrate, the average interest rate on a 30-year fixed mortgage fell to 6.26 percent in the week ending Oct. 22; this was well below the high of 7.19 percent reached in mid-January.

FAQ

Q1. When will the US Fed meet to decide on interest rates?
A1. The US Federal Reserve will meet in December.

Q2. How much interest rate cut did the US Federal Reserve announce?
A2. The US Federal Reserve cut its key interest rate target by a quarter point last month.