Household borrowing hits new record of $15.84 trillion

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(NewsNation) — Household borrowing is at a record high of $15.84 trillion, according to a new report from the Federal Reserve.

But where is all this money going? The largest part is tied to mortgage debt: $11.8 trillion.

Rising interest rates have taken a toll on mortgage originations — which dropped from the historically high volumes we’ve been seeing. The Federal Reserve says this indicates a drop in demand for refinances.

This is the full breakdown:

  • Student debt: $1.59 trillion
  • Auto debt: $1.49 trillion
  • Credit card debt: $840 billion
  • Home equity line of credit: $320 billion
  • Other: $50 billion

There has been a push by the Biden administration to forgive some student debt, with multiple sources telling The Hill Biden is considering expunging at least $10,000 per borrower. Under the Biden administration, roughly $17 billion in federal student loan debt has been canceled for some 725,000 borrowers. 

The Federal Reserve report, which is a quarterly check on the health of the country’s credit consideration and consumer activity, also showed that consumer prices jumped 8.3% last month. While still high, inflation is still below the 8.5% year-over-year surge in March, which was the highest rate since 1981.

The Associated Press contributed to this report.

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