New York has fourth-highest household debt in US — and it’s rising

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New Yorkers’ personal home loan According to a recent government report, crime on consumer loans and mortgages is of particular concern — and the fourth largest share of the U.S. total is on the rise.

At the end of last year, Americans accumulated a total of $15.6 trillion in household debt. New York accounts for 5.6% of the total amount, or $869.4 billion, as calculated by the Federal Reserve Bank of New York, placing it fourth in the nation.

California, the largest state in terms of population, led the nation in national average household debt. Texas, Florida, New York and Illinois — four of the top six most populous states in the country — round out the top five.

On the positive side, the Office of Comptroller Thomas Dinapoli issued a report This week it shows that New Yorkers had a median household debt of $53,830 in the fourth quarter of last year – still well below the national average of $55,810. New Yorkers also tend to be higher earners than average Americans, so they are able to take out a greater amount of debt.

According to a report by the state comptroller, residents of New York state bear the fourth largest household debt burden in the nation.
According to a report by the state comptroller, residents of New York state bear the fourth largest household debt burden in the nation.
AFP via Getty Images

Yet, the state was still well above the national average when it came to Student loans and credit card debt per person.

“Families across the country are in debt at record levels in 2020 after a temporary decline at the start of the pandemic,” Dinapoli said. “We are seeing debt growth for New Yorkers with student loans, mortgages and credit cards.”

Per capita credit card debt in New York state was $3,520 last year — the seventh in the nation, according to the Office of the Comptroller. While credit card debt made up 5.5% of all home debt nationally, the number was higher in New York State — 7%, according to the report.

Meanwhile, according to the report, New York’s delinquency rate of 2.1% of total consumer debt is higher than the national average of 1.9%. The 0.9% rate for mortgage loans in New York is almost double the 0.5% national rate, the report said.

New Yorkers' median household debt rose to $53,830 at the end of 2021.
New Yorkers’ median household debt rose to $53,830 at the end of 2021.
Getty Images

According to Dinapoli’s office, average home debt increased by 4% nationally and 2% at the Empire State during the first two quarters of this year—beyond the previous high set in 2008.

According to Thursday’s report, the majority of home loans across the country and across the state were made up by mortgage loans.

In New York, 69.2% of residents’ median home loans — or $601.2 billion — were owed to lenders for mortgage payments. Nationwide, that figure was 70.2% — or $10.9 trillion.

California, Texas, and Florida are the only states with more home loans than New York.
California, Texas, and Florida are the only states with more home loans than New York.
Getty Images

Dinapoli continued: “Borrowing can help individuals achieve their personal and financial goals, but high levels of debt can hurt long-term results.”

“I urge policymakers to improve access to financial education resources for individuals and families, so that they are better prepared to build a stronger financial future.”

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