Welcome to the first edition of Consumer Corner—a new blog series focused on consumer issues. In this post, we focus on household and consumer debt: what is it; how much is out there; who are the major regulators and interested parties?

With the new year just underway, one common resolution is getting a handle on personal finances and debt. Household and consumer debt consists of mortgage and home equity loans, auto loans, credit card accounts, student loans, and other loans that can be obtained through retail stores. Consumers access this debt through local banks, credit unions, and other financial institutions. While mortgages and home equity loans make up the majority of all household and consumer debt, non-housing related debt—including student loans, credit cards, and auto loans—has grown substantially over the last few years.

In the most recent data on household and consumer debt from the Federal Reserve, non-housing debt saw a larger percent increase over the last year than housing-related debt, and continues to expand its share of overall household debt. This debt has now reached approximately $3.76 trillion and has surpassed pre-financial crisis levels.

Outstanding student loan debt continues to grow and has now reached a record high of $1.36 trillion, exceeding auto and credit card debt. While delinquencies rates for student loan borrowers have remained stable, the debt continues to pile on and can be a drag on total economic output.

The auto loan market shows no signs of slowing either. Total auto loan debt continues to rise, surpassing $1.2 trillion, and delinquency rates have remained elevated relative to pre-recession levels. The increase in delinquency rates, particularly for subprime loans, is cause for concern as the number of new loans continues to grow.  

Consumers’ appetite for credit continues to grow amid increased consumer confidence. Credit card balances in December made the most significant monthly increase in 16 years, signaling greater embrace of debt. While delinquencies for most non-housing consumer debt have steadily decreased since 2010, recent data shows a growing number of credit card accounts becoming delinquent.

As we continue into 2018 and new data comes in, we will see whether consumers continue to take on more debt or stick to their New Year’s resolutions. In the next edition of Consumer Corner, we hone in on the major federal regulators in consumer finance and examine new deregulatory policies that are being initiated.