Americans are taking on a lot more debt.
Total household debt climbed to $12.58 trillion at the end of 2016, an increase of $266 billion from the third quarter, according to a report from the Federal Reserve Bank of New York.
For the year, household debt ballooned by $460 billion -- the largest increase in almost a decade.
That means the debt loads of Americans are flirting with 2008 levels, when total consumer debt reached a record high of $12.68 trillion.
Rising debt hints that banks are extending more credit.
Mortgage originations increased to the highest level since the Great Recession. Mortgage balances make up the bulk of household debt and ended the year at $8.48 trillion.
However, growth in non-housing debt -- which includes credit card debt and student and auto loans -- are key factors fueling the rebound in debt.
...
At these rates, the New York Fed expects household debt to reach its previous 2008 peak sometime this year.
But while that may sound alarming, there is one big difference between now and 2008, according to the Fed: Fewer delinquencies.
At the end of 2016, 4.8% of debts were delinquent, compared to 8.5% of total household debt in the third quarter of 2008.
There were also less bankruptcy filings -- a little more than 200,000 consumers had a bankruptcy added to their credit report in the final quarter of last year, a 4% drop from the same quarter in 2015.
http://money.cnn.com/2017/02/16/pf/americans-more-debt-in-2016/index.html?iid=surge-story-summary
Are we, as a country, just doomed to repeat the same things over and over again?
Mod edit: Some additional context.
Just for giggles....
US Inflation calculator has total inflation from 2008 to 2016 as 11.5%, which means an item bought for $1 in 2008 would cost $1.115 if bought in 2016, all things held equal. It also would mean that $12.68 trillion in debt in 2008 would be roughly $14.14 trillion.
I also took estimated population numbers for 2008, which is 304.1 million. The estimated population headed into 2016 was 322.76 million.
Using those numbers, household debt per capita, expressed in 2016 dollars, was roughly $46,500 in 2008, and $39,000 in 2016.
That is to say, we're not near as indebted now as we were then, even if the non-adjusted dollars only differ by what would be a rounding error.
http://www.usinflationcalculator.com/
https://www.google.com/webhp?source...28&ion=1&espv=2&ie=UTF-8#q=2008+population+us
http://www.usnews.com/opinion/blogs...016-according-to-census-estimates-322-762-018