Household Debt Climbs to Record in U.S. Amid Surge in Mortgages

U.S. credit-card balances fell by the most on record last year even as households increased their total debt by taking on new mortgages, the Federal Reserve Bank of New York said.

Total debt rose by $206 billion in the fourth quarter, bringing the annual increase to 3% to set a record of $14.56 trillion, the data show. Home loans, which increased 5% last year, crossed the $10 trillion threshold for the first time. Credit-card debt rose slightly in the fourth quarter, but ended the year down 12% from 2019, the largest annual decline ever in data analyzed by the New York Fed. Late payments also fell.