Americans Now Pay as Much Interest on Other Debt as on Mortgages.

UNITED States. Bureau of Economic Analysis; DEBT; FINANCIAL crises; INCOME; MORTGAGES; INVESTORS; CONSUMER credit

US households are now paying as much interest on non-mortgage debt, such as credit cards and student loans, as they are on their mortgages, according to the Bureau of Economic Analysis. Non-mortgage interest payments reached a record high of $573.4 billion in January, almost equal to the $578.3 billion in annual mortgage interest. This shift is unprecedented since the 1970s when mortgage interest payments were typically twice as large as other types of debt. The balance has changed because many Americans secured low-rate home loans, while other types of credit have grown faster and become more expensive to service. While concerns about defaults have arisen, the overall burden of household debt remains manageable for now. [Extracted from the article]

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