U.S. household debt declines for seven straight quarters

08:32, August 18, 2010      

Email | Print | Subscribe | Comments | Forum 

U.S. household debt dropped in the second quarter of 2010, the seventh quarterly decline in a row, reflecting an ongoing process of deleveraging as households try to repair their battered balance sheets, the Federal Reserve Bank of New York reported Tuesday.

As of the end of June, total consumer indebtedness was 11.7 trillion U.S. dollars, down 6.5 percent from its peak level in the third quarter of 2008, and a decline of 1.5 percent from the previous quarter, the bank said in its quarterly report on household debt and credit.

The report came at a time when households are rebuilding their balance sheets that were shattered during the financial crisis amid falling home and stock prices. Consumers are now more inclined to use their paychecks to trim debt or save for future use, instead of spending away, as shown in recent economic data.

Consumer spending, which accounts for about 70 percent of the overall economy, flattened out in June, while savings rate rose to 6.4 percent, the highest level since June 2009, the Commerce Department reported earlier this month.

As a result of the deleveraging process, total household delinquency rates declined for the first time since early 2006. As of June 30, 11.4 percent of outstanding debt was in some stage of delinquency, compared to 11.9 percent on March 31, according to the New York Fed's report.

Currently about 1.3 trillion dollars of consumer debt is delinquent and 986 billion dollars is seriously delinquent, which is at least 90 days late.

The number of open credit accounts continued to decline, although at a somewhat slower rate, during the second quarter. About 272 million credit accounts were closed in the year ended June, while 161 million accounts were opened, the report showed.

Source:Xinhua

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion