The debt level of America reached a record high in the second quarter as it exceeded the pre-crisis peak amid the increase in mortgages as well as the auto and credit card debt where the number of misconduct increase in number. A less strict lending standards permit borrowers with lower credit scores to utilize credit cards as mentioned by an economist from the report. The total household debt of the U.S. amounted to $12.84 trillion for the second quarter that rose by $552 billion than last year, as stated from the Federal Reserve Bank of New York report released on Tuesday. Around 14 percent value of household deleveraging due to 2007 to 2009 financial crisis and major recession belongs to the Total U.S. indebtedness. This hindered the upward trend for the past 63 years.
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