Many Americans face various types of debt, from mortgages and student loans to outstanding balances on consumer credit cards. New data shows that, collectively, Americans are projected to hold an estimated $4 trillion in consumer debt by the end of this year. Connecticut residents facing debt management challenges may wish to understand these trends in order to see how their amounts owing compare to others in the country.
The data indicates that the amount the Americans owe, when compared to their income, has increased over the past few years. In 2010, Americans collectively owed 22 percent of their income in consumer debt. Today, that number has increased to over 26 percent. This figure is even higher than it was during the mid-2000s credit boom.
Despite these figures, the data also shows that March 2018 brought a decrease in the total amount Americans owe on revolving and nonrevolving credit. This includes credit cards, student loans and auto loans. This is the second consecutive month where balances have declined, with revolving debt such as credit cards seeing a substantial dip of $8.1 billion since the prior month.
According to the data, the total revolving debt load in the United States as of March 2018 is $976.6 billion. This is mainly due to credit card spending. Combined with nonrevolving credit, the total debt load across the country currently sits at $3.824 trillion. Although debt is not uncommon in the United States, debt management can still be overwhelming for many throughout Connecticut. Those looking to understand their options, including the possibility of filing for bankruptcy, should contact a Connecticut lawyer.
Source: pymnts.com, "American Consumer Debt To Hit $4Trillion By EOY", May 11, 2018