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Hooray! A New York Fed report on Household Debt and Credit shows household debt hit an all-time high in the third quarter of 2017.

Mortgage balances, the largest component of household debt, which stood at $8.47 trillion as of September 30, saw a $52 billion uptick from the second quarter of 2017.

Balances on home equity lines of credit (HELOC) were declined slightly, and now stand at $448 billion.

Household Debt Composition

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Loan Types

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Mortgages by Credit Score

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Auto Loans by Credit Score

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Deflationary Setup

With stagnant real wages, how precisely is this debt supposed to be paid back?

Here's a hint: It won't.

This increase in unpayable debt is a very deflationary setup.

Mike "Mish" Shedlock