According to the latest figures released, the household debt in the US has fallen during the third quarter as the fall in mortgage balances outpaced an increase in student and auto loans.

The Federal Reserve Bank of New York said Tuesday said that American households were carefully working to reduce mortgage balances and are increasing other sorts of debt. Data showed that the total household debt fell by $74 billion to the level of $11.3 trillion during the three months till September, 2012.

Mortgage debt, the largest component of household borrowing, fell by $120 billion to $8.03 trillion, which is its lowest level in six years. The data indicates that there is a fall in home loan balances, foreclosures and home equity lines of credit in the US.

The Federal Reserve noted that the foreclosure have fallen during the third quarter and might be moving towards pre crisis level. A total of 242,000 Americans had to let go of their homes in the quarter due to foreclosure. Originations rose to the level of $521 billion during the quarter. The borrowing except for homes increased 2.3 percent to $2.7 trillion as student loans increased 4.6 percent, to $956 billion during the quarter, according to the latest data.