Since starting this debt pay off journey I've spent many hours reading financial news, blogs, success stories, etc.
I've been blown away by the reporting and updates on the amount of consumer debt in this country.
In a few words - I'm not surprised. My own debt situation was horrible, and even if measured today, I wouldn't consider it anything but poor.
As an onlooker offering very simplified explanations of why this is the case, I'd say:
Here are a few stats:
With a "booming economy" and unemployment rates at record lows, to see household debt increasing consistently (it's gone up for 18 consecutive quarters) is a bit scary.
I've been blown away by the reporting and updates on the amount of consumer debt in this country.
In a few words - I'm not surprised. My own debt situation was horrible, and even if measured today, I wouldn't consider it anything but poor.
As an onlooker offering very simplified explanations of why this is the case, I'd say:
- Financial education in this country is for the most part non-existent, and "affordable" seems to be measured 30 days at a time.
- Medical costs are rising significantly and can quickly put an individual/family behind in their finances.
- We're more of a consumer driven culture than ever before. Flagship smartphone companies are now exploring $1000+ smartphone pricepoints.
- FOMO and YOLO are the rally cries of today's youth and young adults.
Here are a few stats:
- Consumer debt in America climbed over 4 trillion at the closing of 2018, $4.01 trillion total.
- Student loans - $1.569 trillion, auto loans - $1.155 trillion, credit cards - $1.045 trillion
- Credit card debt set a new record, edging out 2008 totals of 1.02 trillion (this was an average of $8,640 per household in July 2008).
- What does these debt totals look like for the average household? For households that carry these debts, the average totals are:
- Credit cards - $6,900 (those who carry month to month balances)
- Student loans - $47,671
- Auto loans - $28,033
- Mortgages - $184,417
- Carry any debt, total - $135,768
The average household in America that carries any form of debt has an average total of $135,768.
I'm glad I backed off the ledge of the debt cliff. I'm posting a February update Friday - but I will say 2019 is off to a great start.
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