Here’s a word nobody likes: DEBT. Let’s talk about some of the realities we face as a society relative to DEBT.  Lots of it and all kinds!!

Americans are living beyond their means. The average American household carries $137,063 in debt, according to the Federal Reserve’s latest numbers. Yet the U.S. Census Bureau reports that the median household income was just $59,039 last year, suggesting that many Americans are living beyond their means. Nov 18, 2017

Credit cards: Americans may soon have as much credit card debt as they did during the Great Recession. Credit card debt is a common issue that challenges American consumers:

  • $1.03 trillion total U.S. credit card debt¹
  • 8 million credit cardholders in the U.S. (or 79% of adults)²
  • $5,234 average credit card debt per cardholder in the U.S.³
  • $8,750 average credit card debt per U.S. household³
  • 99% APR average credit card rate on accounts that assess interest¹

Student Loans: The most recent reports indicate there is:

  • $1.48 trillion in total U.S. student loan debt
  • 2 million Americans with student loan debt

It’s 2019 and Americans are more burdened by student loan debt than ever. In fact, the average student loan debt for Class of 2017 graduates was $39,400*, up six percent from the previous year.

Mortgage debt: Review some of the data below to see just where you stand in comparison to the average American carrying a mortgage.

  • $14.9 trillion total U.S. mortgage debt⁴
  • $338,078 average mortgage size for new purchases⁵
  • 45% APR average mortgage on a 30-year mortgage⁶

Auto Loan debt: In fact, in 2016, total U.S. auto loan debt surpassed $1 trillion and it doesn’t show any signs of letting up. Here’s is where this trend stands as of the end of 2017:

  • $1.13 trillion in total U.S. auto loan debt⁷
  • $31,099 is the average auto loan amount on a new car
  • The average loan term is 69 months on a new car
  • The average auto loan payment amount is $515 on a new car
  • The average auto loan APR is 5.11% on a new car

Medical debt: If you’re finding yourself dealing with medical debts you can’t afford, you’re not alone. Below are some statistics that show how medical debt has grown and where it hits the hardest:

  • 9 million people have overdue medical debt in the U.S.⁸
  • $1,766 average balance owed among people with overdue medical debt
  • 7% of people under 65 struggle to pay medical bills of more than $2,000⁹
  • 6% of people under 65 struggle to pay medical bills of $2,000 or less

None of this is an issue as long as income keeps up with the excessive debt load. Humm….