Household debt rose to $17.06 trillion in the second quarter of 2023, the New York Federal Reserve reported this week, a rise of $16 billion from the previous quarter. However, many U.S. households made efforts to reduce debt, paying off nearly $170 billion in the quarter, 21% more than in the first quarter, WalletHub reported.
Consumers paid off $170 billion in debt in the second quarter after paying back $141 billion in debt in the first quarter. The figures were down 5% from a year ago, when consumers paid back almost $180 billion in debt. Overall debt figures continue to rise, with credit card debt alone now hitting $1 trillion as of the start of the third quarter. But despite still-high inflation and the accompanying pricing pressures, consumers made efforts to dig out of debt.
