Consumer debt fell in the second quarter to 0.5% to $11.38 trillion from first quarter totals of $11.44 trillion, reported the New York Federal Reserve’s quarterly review. According to the Wall Street Journal, household debt has fallen $1.3 trillion since the third quarter of 2008.
Most of the second quarter decline came because of a narrowing in home loans, which fell by 0.5% to $8.15 trillion. While home loans experienced an overall decline, home loan delinquency rates also fell from 9.3% to 9%. The balances on home equity lines of credit also dropped by 3.7%, or $23 billion, repoted Reuters.
The only sections of debt that increased were student loans, which grew by $10 billion to $914 billion, and auto loans, which increased by $13 billion to $750 billion. Student loan delinquency rates increased for the second straight quarter, rising 0.2% to 8.9%, reported Investor’s Business Daily.