It is commonly known that the U.S. economy relies heavily on spending and consumption. However, if these factors are threatened in any way – such as consumers taking on too much debt – it could create problems.
Recently, there has been a lot of talk about the high levels of household debt in the U.S., with reports stating that it reached $17.8 trillion in Q2 2024 according to the Federal Reserve of New York’s Household Debt and Credit Report. This has raised concerns about its potential impact.
John Chang, Senior Vice President and National Director at Marcus & Millichap’s Research and Advisory Services department, addressed this issue in a video titled “Will Elevated Debt Threaten the Economy?” He broke down where this debt comes from:
– $12.9 trillion from mortgages and home equity lines of credit
– $1.6 trillion from student loans
– $1.6 trillion from auto loans
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