Americans owe trillions of dollars in debt !
It’s no wonder many people struggle to pay their bills every month. Debt can be a significant weight on your shoulders, and it’s essential to understand how much debt you’re carrying before you can start working on getting rid of it. So, how much is the average American debt ? Keep reading to find out !
Auto loans
According to a recent report, about 60 percent of Americans have auto loans. The average loan balance is just over $19,000. For many, taking out an auto loan is the only way to afford a car. Given the high cost of vehicles, it’s not surprising that so many people rely on loans. However, there are some risks associated with auto loans.
For one thing, if you fall behind on your payments, you could lose your car. In addition, auto loans can have high-interest rates, which can add hundreds or even thousands of dollars to the cost of your vehicle.
Mortgages
For many Americans, a mortgage is the most significant debt they will ever take on. A mortgage is a loan used to purchase a home and typically must be paid back over 15 to 30 years. According to the Mortgage Bankers Association, about 44 percent of Americans currently have a mortgage. The average mortgage balance is $208,185, although this number varies greatly depending on the location and type of home.
Credit cards
Credit cards are a type of borrowing in which the cardholder borrows money from the card issuer. The issuer then pays the merchant for the purchase made by the cardholder. The cardholder then repays the issuer, with interest, over time. Credit cards are the most common type of credit account in the United States. About 75 percent of Americans have at least one credit card, and the average American has four credit cards at once. The average credit card balance is $5,315.
Final Word
In conclusion, the average American owes $92,727 in debt. This is a concerning statistic and points to the need for individuals and families to take steps to reduce their levels of indebtedness. While there are many ways to do this, one critical step is to make a budget and stick to it.
