US household debt ticks up to new all-time high as inflation continues to rise

U.S. household debt has reached a record $18.8 trillion, driven by increases in mortgage and auto loan balances, according to the Federal Reserve Bank of New York. While student loan debt slightly decreased to $1.66 trillion, over 10% of these loans are past due, nearing pre-pandemic levels. Credit card debt fell by $25 billion in the first quarter but has risen by $70 billion over the past year. Researchers describe overall credit as “stable,” but note challenges for younger and lower-income consumers. This debt surge occurs amid rising inflation, which hit 3.8% in April, the highest in three years. QUESTION: How might rising household debt and inflation impact your future financial decisions and opportunities?