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  • Frank Tian

US Q1 Consumer Credit Update

With the banking crisis in March,

How is US consumer credit doing?

Here is the Q1 ‘23 Fed report: 👇

Quarterly debt growth slowed to $148B.

The total debt reached $17.05 trillion.

$1.21 trillion increase or +7.6% vs. Q1 ‘22.

🏡 Mortgage

Up $121 billion Q/Q, +7.7% Y/Y.

With the interest rate rising fast,

Origination $ continued to slide.

🚗 Auto Loan

Up $10 billion Q/Q, +6.3% Y/Y.

Origination $ began to dip in Q1.

New car prices still slowly rising.

Used car prices paused the drop.

💳 Credit Card

Flat Q/Q, +145 billion Y/Y.

Y/Y growth runs even higher at 17%.

With high prices and a decent job market,

The card balance sits right below $1 trillion.

👩‍🎓 Student Loan

Up $9 billion Q/Q, +0.9% Y/Y.

The total balance is $1.60 trillion.

With the pandemic officially over,

Payment will resume by late August.

🟨 Risk Normalization

The risk normalization (increase) continues - slowly but surely.

📌 The flow rates to 90+ days delinquencies are approaching to pre-pandemic level for Auto Loan and Credit Card.

📌 35,000 individuals had Mortgage Foreclosures in Q1 vs. 34,000 in Q4, and 28,500 in Q3.

📌 New Bankruptcies up slightly at 102,000 - first time above 100K since Q2 2021.

Source: The Fed, Quarterly Report on Household Debt and Credit

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