Here’s How Much Debt A Single Household In America Is
Here’s How Much Debt A Single Household In America Is: The debt of an average American household has slowly recoiled since it declined as a consequence of the Great Recession. Household debt is a congregation of mortgages, car loans, credit card debt, student loans and other forms of debt.
How much debt is America in?
It is striking that the latest recorded culmination of household debt, recorded in 2017 is a whopping $13 trillion. This figure is way past the last highest record debt of $280 billion in the year 2008.
Survey of Consumer Finances
Surveys suggest that people in their middle ages have the highest debt. A pattern can be deduced from the findings of the Survey of Consumer Finances conducted by the Federal Reserve that people in the years of highest have the most debt. People in late forties and early fifties had the highest debt among all age groups.
It happens because in these years, individuals feel more financially stable and tend to the needs of their children. They settle in a bigger house for the family, get a car and have to pay for the college tuition. These are the years when their careers are at their peak with expected pay raises and promotions, so they feel more comfortable getting loans.
The old trend of saving for your needs such as college tuition has very much ended because people are getting more accustomed to getting loans to buy the things they need right away. However this new trend of loans poses a future threat of not being able to pay off the loans.
Some striking figures
In the past thirteen years, living expenses have increased drastically whereas the household income has been lagging behind. Since the year 2003, medical expenses have shown a 57% increment whereas the food expenses have increased 36% as well. The cost of housing has also gone uphill as it has increased 32% since 2003. These increments in the fundamental necessities of life have increased the financial inequality as one-fourth of the American population earns merely $10 an hour.
However, the silver lining to it is that college tuition expenses have shown a very slow increment. Therefore, a financially stable millennial can be hoped for.
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