NEW YORK — A report by the Federal Reserve Bank of New York (FRBNY) revealed that consumer debt fell approximately $60 billion to $11.66 trillion in the third quarter, a decrease of about 0.6 percent from revised second quarter findings of $11.72 trillion.
"The decline in outstanding consumer debt reveals that households continue to try and deleverage in the wake of a challenging economic environment and large declines in home values," said Andrew Haughwout, vice president in the Research and Statistics Group at the New York Fed. "However, our findings also provide evidence that consumer credit demand continues to increase, a positive sign for consumer sentiment."
The report also indicated that overall delinquency rates increased to 10 percent as of the end of September, compared with 9.8 percent at the end of June. Approximately $1.2 trillion of consumer debt is delinquent with $834 billion being seriously delinquent (more than 90 days).
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