Americans are continuing to deleverage (reduce their level of debt) according to a report issued by the Federal Reserve Bank of New York. While the change is not as dramatic as in previous quarters, 2010Q3 marks the eighth consecutive quarter that household debt has decreased. Americans have eliminated nearly $1 trillion of their obligations since debt hit its peak in the third quarter of 2008. Credit availability and delinquencies are also down. The Quarterly Report on Household Debt and Credit covers five measures of debt; mortgage, credit card, revolving home equity (HELOC,) student loans, and auto loans. Americans currently owe $11.6 trillion, with mortgages representing 74 percent of that debt; credit cards, auto loans, and HELOCs each represent 6 percent and student loans 5 percent. Americans...(read more)

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