How Much Household Debt is There in America?
According to recent studies, the average household in America has more than $130,000 in debt. The national household debt overall rose to $12.29 trillion in the second quarter of 2016’s fiscal year, so it feels like everyone is in a bit of a financial quagmire right now. But where is all this debt coming from? And who is on the other side of the debt waiting for the eventual repayment, or expecting the bankruptcy filing of their client?
The four biggest contenders for U.S. consumer debt are:
Mortgages: For the typical American household that is attempting to purchase a home, the total amount they owe in mortgage payments is $171,775. Overall, consumers in the country owe a staggering $8.37 trillion in mortgage payments. It is no surprise that this is the leading category of debt since homes are costly investments.
Student loans: It is surprising, however, to find that the second biggest reason Americans are falling into debt is student loans. The average university or college student that took out student loans now owes nearly $49,000, totaling to $1.26 trillion across the nation. Recent rallies and campaigns to reduce the cost of education, even suggesting it become free as it is in several other countries, are a direct reflection of this high amount of student loan debt.
Auto loans: People struggling to pay off their auto loans and finalize their auto purchases owe more than $27,000 on average. Americans in total owe $1.07 trillion in auto loans. A unique problem is created when considering how to escape auto loans: most people require a car to get to their jobs and require a job to afford their car, and thus losing one likely means losing the other. This perpetual cycle makes it seem impossible for many to free themselves of auto loan debt permanently.
Credit cards: You may constantly hear about credit card debt as driving people to the brink of bankruptcy and beyond, but the truth is that credit cards are fourth in line for the most debt owed. The average American consumer has $15,310 of credit card debt and the country as a whole has $712 billion. Credit card debt is also comparatively easy to discharge after a bankruptcy filing, meaning the presence of high credit card debt may be less imposing than a smaller amount of another form of debt, such as student loans.
If you are part of the demographic that owes a considerable sum to banks, lenders, and creditors, all of this information really boils down to one truth: you are by no means alone. At Albaugh Law Firm, our Jacksonville bankruptcy lawyers are here to offer compassionate support and knowledgeable legal guidance in regards to your bankruptcy options. When done correctly, a bankruptcy filing can be your saving grace and lead you and your family to a brighter, better tomorrow. Get a free case evaluation to learn more by contacting our firm today.