Ready, Fire, Aim! - Mihail's Public Blog: Consumer debt now at a whopping $1.74 trillion (not including mortgages)

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Sunday, April 20, 2003

Consumer debt now at a whopping $1.74 trillion (not including mortgages)

A good indicator of the terrible impact this downturn has had on consumers is the fact that consumer debt is at an all time high and backruptcies are rising according to this New York Times story (registration required):

...The Federal Reserve reported this month that consumers added $5.4 billion to revolving credit in February, and that total consumer debt stood at $1.74 trillion, excluding home mortgages. Last year, though, banks had to write off an average of 6 percent per quarter on outstanding credit-card balances, according to the Fed. At the same time, a record 1.5 million people filed for bankruptcy protection, about 6 percent more than in 2001, according to the American Bankruptcy Institute. The group's executive director, Samuel Gerdano, said it expected that pace to continue this year.

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