A big year for car and home shopping helped push Americans to take on a lot more debt last year.
Household debt increased by $1 trillion in 2021, the biggest annual increase since 2007, according to data from the Federal Reserve Bank of New York.
In the fourth quarter alone, household debt grew by $333 billion to $15.58 trillion, the largest quarterly rate of increase since 2007 as well.
Mortgage debt and auto loans were the big drivers of the increase, according to the report, which is based on data from the New York Fed’s nationally representative Consumer Credit Panel.
“The aggregate balances of newly opened mortgage and auto loans sharply increased in 2021,” said Wilbert Van Der Klaauw, senior vice president at the New York Fed, “corresponding to increases in home and car prices.”
Source: CNN
