How Much Does the Average US consumer Owe?
Debt in the United States is rising at a mind-boggling rate.
Most of the people of America have thousands of dollars of debts in auto loans, student loans, and credit cards. If adding a mortgage loan in that, the sum would seem impossible to pay off for many households in the US.
The economic system of the United States has been improving in the last decade, since the economy took its large hit. Now, loan companies are more willing to offer different loans, that is why debts are now enslaving the United States citizens.
Average US Consumer Debt
Here are some of the most mind-blowing US debt statistics, based on a NerdWallet Report 2018.
- Total consumer debt is about $1.3 trillion
- Student loan debt is more than $50,000 for just about anyone who attends college
- The majority of the household credit card debt is approximately $5,000 with the median financial debt at more than $16,000
- The average home loan debt is $173,500
- The average car loan surpasses $30,000
- Unsecured loans and other various financial debts are more than $11,000
- Each person owes about $139,500 thousand, including those who don’t have specific debts, but are paying them for others
What is the main Cause of Rising debt in the United States?
The economy underwent an incredible recession at the end of 2009. The nation has been working very hard to recoup since that time.
An economic downturn of that scale had a bigger impact than many stakeholders may have realized, including a sudden lending lock across the country.
Considering that things are getting better, banking institutions are happier to provide loans, and they've been doing this at high rates of interest. Also, the Federal Government Reserve was very terrible in that they increased rates after crash, which left a heavy burden on people that had credit cards and loan balances.
Rather than facilitating the consumer for making payments on lower rates, banks increase the rates of interest. It's the hidden way that is actually changing the economic system, and is putting a bad impact on the consumer.
A huge gap Between Income and Expenditures
The people of the website (https://www.nationaldebtreliefreviews.com/) found that half of the 8 major expenditure categories in the United States have grown at a much faster rate than the average income.
Healthcare costs, for instance, have increased about 57%, which means that the average income has increased by 28%. This makes US citizens scrambling to pay for their increasing expenses.
The rising rate of credit card debt is 7.2%. It's a sign of an arduous economic climate, which means that you will be paying back all your financial debts for the rest of your life.
The worst feeling comes when a person who is not in any debt learns that he has to pay debts of others. As this is, unfortunately, a financial system of almost every country around the world, the federal government is to blame mostly for not sustaining the sudden downturns in the country.
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