The aggregate amount of Americans' household debt rose in the first quarter by $129 billion. That marked the third straight quarterly increase, and raised our total indebtedness to $11.65 trillion. Ordinarily, this would be a sign of money being injected into the economy, and a positive signal for our economic future.
But a deeper look shows that this might not be the case. Student loan balances are te fastest-growing category of debt, up $31 billion in the first quarter. Mortgage balances were also up, but that was primarily a result of fewer people being in foreclosure.
The category with the most direct impact on the economy, credit card debt, actually dropped in the first quarter. Credit card balances were down $24 billion and are now at their lowest level since 2002. It seems that when it comes to personal debt, Americans are still inclined to play it safe.
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