There are many types of debt that Americans struggle with. Here are some of the most common:
How many Americans are in debt?
According to a recent survey, about 77% of Americans are in debt. This includes people with mortgages, auto loans, student loans, and credit card debt. The average American household has credit card debt of $15,310.
– Credit card debt: It is one of the most common types of debt in America. Credit cards can be used to make purchases or withdraw cash. Many people use credit cards to pay for everyday expenses, such as gas or groceries.
– Mortgage debt: A mortgage is a loan that is used to buy a house. Mortgage debt is the largest type of debt in America. The average mortgage debt in America is $152,860.
– Student loan debt: Student loan debt is the second most common type of debt in America. The average student debt in America is $33,610.
– Car loan debt: The car loan is used to finance the purchase of a vehicle. The average car loan debt in America is $28,400.
– Medical debt: Medical debt is a type of debt incurred when you have to pay medical bills. This can include hospital bills, doctor’s bills, or prescription drugs. The average medical debt in America is $1,600.
– HELOC debt: A home equity line of credit (HELOC) is a type of loan that lets you borrow against the equity in your home. The average HELOC debt in America is $21,748.
Average US debt by age
The average US debt by age is as follows:
– 18 to 29 years old: $10,686
– 30 to 49 years old: $37,856
– 50 to 64 years old: $61,165
The average US debt by income is:
– Less than $25,000: $13,438
– $25,000 to $49,999: $33,980
– $50,000 to $74,999: $54,014
– $75,000 to $99,999: $76,188
– $100,000 or more: $132,608
What can Americans do about debt?
As you can see, average US debt varies by age and income. If you are struggling with debt, there are many resources available to help you get out of it. You can talk to a financial advisor, credit counselor or bankruptcy attorney to start your journey to financial freedom.
Many relied on credit cards during the pandemic
According to Vernon Tremblay of ACFA-Cashflow, “due to the pandemic, many Americans have had to rely on credit cards to make ends meet. This led to an increase in credit card debt.
The pandemic has also led to an increase in medical debt. If you have incurred medical debt due to the pandemic, there are many resources available to help you pay off your debt.
The pandemic has also led to an increase in unemployment. If you have lost your job, there are many resources available to help you get back on your feet.
No matter what kind of debt you find yourself in, there are resources available to help you get out of it. You can talk to a financial advisor, credit counselor or bankruptcy attorney to start your journey to financial freedom.
How Credit Cards Helped People During the Pandemic
At the start of the pandemic, people were buying less and credit card companies were worried about how it would affect their business. However, many people have found that credit cards have helped them during this time.
For example, some people used their credit card to buy groceries and other essentials. Others used their credit cards to pay for medical bills or other unexpected expenses. And some people used their credit cards to help pay their bills when their incomes were low.
In general, people have found credit cards to be a useful way to manage their finances during the pandemic. And as the pandemic continues, people are still finding credit cards a useful tool.
How Americans Avoid High-Interest Debt and Build Credit
Using credit cards has many advantages. First, they can help you establish your credit history. Second, they can give you a way to borrow money in an emergency. Third, they can help you track your expenses. And fourth, they can offer rewards and perks that can save you money.
Using credit cards can help you build your credit history because your payment history is reported to credit bureaus. This means that if you make your payments on time and keep your balances low, you will build up a good credit history. And a good credit history can lead to lower interest rates on loans and other benefits.
Credit cards can also allow you to borrow money in an emergency. If you have a good credit history, you may be able to get a cash advance on your credit card. It can be a useful way to get cash when you need it.
Credit cards can also help you track your expenses. When you use a credit card, you’ll receive a monthly statement showing all of your charges. This can help you better track your expenses and budget.
Finally, credit cards can offer rewards and benefits that can save you money. Many credit cards offer cash back or points for every purchase you make. And some credit cards offer special perks, like free travel insurance or extended warranty protection.
Overall, using credit cards has many advantages. And if you use them wisely, they can help you save money and build your credit history.
Statistics on “Personal Debt in the United States”
In 2021, the average American household had a debt of $137,061. This is the second highest level of debt in history, behind only 2007.
The majority of that debt is mortgage debt, but Americans are also increasingly saddled with student loans and credit card debt. In fact, the average American has credit card debt of $5,331.
This level of debt can have a major impact on your financial well-being. This can make it difficult to save for retirement or a bad day, and can even lead to bankruptcy.
If you’re struggling with personal debt, there are a number of resources available to help you get back on track. The first step is to set a budget and stick to it. You can also consider consolidating your debts or talking to a credit counselor.
Either way, remember that you are not alone. Millions of Americans are struggling with personal debt, but there are ways to get back on track.
Company Name: ACFA cash flow
Contact person: Vernon Tremblay
E-mail: Send an email
Country: United States