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, approximately 77% of Americans are in debt. This includes people with mortgage loans, car loans, student loans, and credit card debt. The average American household has $15,310 in credit card debt.
– Credit card debt: This 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 purchase a home. 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-largest type of debt in America. The average student loan debt in America is $33,610.
– Auto loan debt: Auto loans are used to finance the purchase of a vehicle. The average auto loan debt in America is $28,400.
– Medical debt: Medical debt is a type of debt that is incurred when you have to pay for medical expenses. This can include hospital bills, doctor bills, or prescription medication. The average medical debt in America is $1,600.
– HELOC Debt: A home equity line of credit (HELOC) is a type of loan that allows you to borrow against the equity in your home. The average HELOC debt in America is $21,748.
Average American Debt by Age
The average American 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 American debt by income is as follows:
– Under $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, the average American debt varies by age and income. If you are struggling with debt, there are many resources available to help you get out of debt. You can speak to a financial advisor, credit counselor, or bankruptcy attorney to get started on 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 has 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 type of debt you are in, there are resources available to help you get out of debt. You can speak to a financial advisor, credit counselor, or bankruptcy attorney to get started on your journey to financial freedom.
How credit cards helped people during the pandemic?
In the early days of the pandemic, people were buying less and credit card companies were worried about how this would affect their business. However, many people found that credit cards helped them during this time.
For example, some people used their credit cards to buy groceries and other essential items. Others used their credit cards to pay for medical bills or other unexpected expenses. And some people used their credit cards to help them keep up with their bills when their income was reduced.
In general, people found that credit cards were a helpful way to manage their finances during the pandemic. And as the pandemic continues, people are still finding credit cards to be a helpful tool.
How Americans use stay out of high interest debt and build credit
There are many benefits of using credit cards. First, they can help you build your credit history. Second, they can give you a way to borrow money in an emergency. Third, they can help you keep track of your spending. 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 the credit bureaus. This means that if you make your payments on time and keep your balances low, you will be building a good credit history. And a good credit history can lead to lower interest rates on loans and other benefits.
Credit cards can also give you a way to borrow money in an emergency. If you have a good credit history, you may be able to get a cash advance from your credit card. This can be a helpful way to get money when you need it.
Credit cards can also help you keep track of your spending. When you use a credit card, you will receive a statement every month that shows all of your charges. This can help you keep track of your spending and budget better.
Lastly, credit cards can offer rewards and perks that can save you money. Many credit cards offer cash back or points for every purchase you make. And some credit cards offer special benefits, such as free travel insurance or extended warranty protection.
Overall, there are many benefits of using credit cards. 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”
As of 2021, the average American household had $137,061 in debt. This is the second highest debt level in history, behind only 2007.
The majority of this debt is mortgage debt, but Americans are also increasingly saddled with student loan and credit card debt. In fact, the average American has $5,331 in credit card debt.
This level of debt can have a major impact on your financial well-being. It can make it difficult to save for retirement or a rainy 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 develop a budget and stick to it. You may also want to consider consolidating your debt or speaking with a credit counselor.
No matter what, remember that you’re not alone. Millions of Americans are dealing with personal debt, but there are ways to get back on track.
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Company Name: Acfa Cashflow
Contact Person: Vernon Tremblay
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Country: United States
Website: acfa-cashflow.com/