American households increased their debt by $155 billion in the first quarter, driven by a surge in mortgage loans, while overall debt levels rose to a new record atIt is marked as the 23rd straight quarter of increasing household debt, which is equal to a 1.1 percent rise.
The report was prepared according to the debt and credit data of consumers as of March 31 when the coronavirus pandemic had already arrived in the US, however the country was not the epicentre of the virus. Mortgage borrowing reached $9.71 trillion, increasing by $156 billion. For mortgage borrowers, the median Equifax Risk Score, which means the lower score equals high-risk for delinquency, is increased.: "It is critical to note that the latest report reflects a time when many of the economic effects of the Covid-19 pandemic were only starting to be felt.
Before starting the second quarter of the year, American households have $3 trillion in credit card debt. The lockdown period will further increase household and credit card debts as they cover their spending by cards while most parts of the US economy are shut down due to the pandemic.