American consumers are once again spending beyond their means. Just a few months ago there was a startling headline reporting that US consumers now had over $1 trillion in credit card debt outstanding. That seemed astonishing in itself but now looking at debt levels in other sectors we find thatauto loans outstanding are also over $1 trillion. Keep in mind this is for an item that will lose value once it is taken off the lot. You also have student debt over $1.4 trillion which is amazing given many young Americans are working in jobs that really don’t require a college degree. The debt apocalypse is once again upon us and we better hope the economy keeps on running on fumes or we will be confronted with another solvency crisis shortly.
The debt numbers broken down
The figures are stunning to see:
Student debt outstanding: $1.44 trillion
Auto loans outstanding: $1.12 trillion
It is no surprise that we have so many Americans struggling under the weight of debt and then we wonder why many families are too broke to even afford an entry level home. Many young Americans are entering the workforce with what amounts to a mini-mortgage.
Here is the incredible growth in student debt and auto loans:
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This post was published at MyBudget360 on 05/07/2017.
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