Reports show that consumers have spent the last year piling up record debt numbers. Even more concerning is that since 2010, student loan and auto loan debt has more than doubled. In 2021, the average American household had more than $58,000 in student loan debt and more than $30,000 in auto loan debt. With rising housing prices and the rise in costs of everyday goods, it is hard to believe that consumers won't soon find themselves in a recession and heading to bankruptcy court in mass numbers.
Consumer may have found some relief of their credit card debt during the pandemic as overall debt totals dropped during that period. However, mortgage loans increased significantly during that time bringing debt totals to record numbers. Household debt increased 2.1% in the second quarter of 2021 adding almost a trillion more dollars to household debt during that time. You have to go back to 2007 to see debt grow in such record amounts.
Debt is broken down as follows by generations:
- Gen X carries an average debt load of $140,000
- Baby Boomers with $97,000 average debt
- Millennials have $87,000 in average debt
- Gen Z has $16,000 in average debt
Research shows that debt numbers are quickly increasing among the youngest consumers, with Millennials and Gen Z increasing their debt loads the most in 2020 with big increases in mortgage and personal debt. The report also shows just how stressful debt can be with half of Americans reporting increased anxiety levels due to financial worries.
Don't let debt stress you out. Talk to experienced lawyers today to find your best path forward.
