Household Debt Exceeds $ 90,000

 

The average debt for American households is now more than $ 90,000, according to a recent survey. The study from the personal finance website NerdWallet, entitled “The 2015 US Debt Study for American Households,” found that the average American household with debts has $ 15, 762 only for card cards and an unimaginable debt of $ 130,922. The distribution of debts per average household is as follows: $ 15, 762 in credit cards, $ 168, 614 in mortgages, $ 27, 141 in car loans and $ 48, 172 in student loans. The average household pays a staggering $ 6,658 in interest each year.

According to the NerdWallet study, the reason why debts have increased so much is because the rise in the cost of living over the past twelve years has exceeded income growth. Although the median household income has risen by 26% since 2003, medical costs have increased by 51%, while food and beverage prices have increased by 37%.

In addition, according to a recent survey by CardHub, a credit card comparison website, US households will build a record high of $ 1 trillion in outstanding debts by the end of 2016. If this is the case, then the average credit card debt per household will be $ 8,500. The amount of debt paid by consumers at the end of the second quarter could amount to $ 30 billion. The study finds that it seems hopeful that American households have paid a total of $ 26. 8 billion credit cards in the first quarter of 2016, that amount is the smallest debt reduction in the first quarter since 2008 and 25% lower than the average in the post-recession era.

 

Households paid only 38% of the $ 75 billion in credit card debt built up in 2015. Despite the upward trend in credit card spending, the good news is that the charge rates are almost historic lows.

For those who are concerned about paying their debts, some ways to actively manage debt are, among other things, creating a persooSilas Laphamijk budget, ordering a credit report to know where you stand, improving your credit score and try out the snowball approach. (See also: 7 tips for the do-it-yourself debt manager.)