Debt Dollars

In 23Q2, total household debt was $17.06 trillion, up trivially from $17.05 trillion in 23Q1. Compared to 19Q4 when it was $14.16 trillion, debt has risen $2.9 trillion, 21.3%. While that seems substantial, inflation from 19Q4 through 23Q2 was 17.6%, meaning inflation-adjusted debt is up $0.4 trillion. What’s changed? Housing debt now comprises 70.7% of debt, up from 67.7% in 19Q4, while student debt is down from 10.7% to 9.2%.