Quarterly Report on Household Debt and Credit
Total household debt decreased by $34 billion (0.2 percent) to $14.27 trillion, in the second quarter of 2020. This marks the first decline since the second quarter of 2014. Credit card balances fell by $76 billion, reflecting the sharp decline in overall consumer spending due to the COVID-19 pandemic. In total, non-housing balances (including credit card, auto loan, student loan, and other debts) saw the largest drop in the history of this report, with an $86 billion decline.
(posted Aug 6)
SCE CREDIT ACCESS SURVEY
The application rate for any type of credit over the past twelve months dropped to a new series low of 39 percent in June, down from 46 percent in February. The decline was broad-based across demographic groups and was largest for credit card applications and credit card limit increase requests. The average likelihood of applying for any type of credit over the next twelve months also fell sharply, driven by a decline in expected credit card applications.
(posted July 17)
Note: Results for the June Survey of Consumer Expectations Credit Access Survey were released on Friday, July 17, instead of Monday, July 20, as scheduled due to a premature release of some data.
SURVEY OF CONSUMER EXPECTATIONS
June 2020 Survey: While consumers remain less optimistic about earnings growth, income growth, and job finding expectations than in the pre-COVID-19 period, some indicators measuring the outlook for household financial conditions have shown considerable improvement. For example, home price growth expectations increased and the average probability of missing a future minimum debt payment reached a new series low. Median inflation expectations decreased at both the one-year and three-year horizons.
(posted July 13)