America’s appetite for debt is growing and growing as the year continues. In the first three months of 2017, the total household debt for our country reached a staggering amount of $12.73 trillion.
According to the Federal Reserve Bank of New York, data released this week shows our country’s household debt has increased $149 Billion since the end of 2016.
That means that today’s current debt of $12.73 trillion has surpassed the 2008 debt peak mark of $12.73 trillion. One of the contributing factors that cause the country’s large household debt is mortgage balance. Student and auto loans are also critical contributing factors that are helping to fuel the increase in our country’s debt. The outstanding student loan balances which remained at a high amount since 2014 has increasingly grown from $34 billion to $1.34 trillion. The interest rates for a student loan can vary from about 3% to nearly 13% depending on the lender.
Many Americans in our country deal with numerous financial struggles – such as unemployment, credit card bills, house bills, mortgage, medical expenses and auto expenses. In the United States, there are currently about 44.2 million Americans in student loan debt and the numbers are dramatically growing each year. Even auto loans balance increased for six years running, this went from $10 billion to $1.17 trillion. American consumers are taking on greater amounts of auto debt. The rise in auto debt is the result of Americans replacing their aging cars with newer models.
There are certain measures that can be taken to reduce the United States’ Household debt. Some of the things that can be done are the typical increasing tax and cutting government spending. When taking this approach it can reduce the country’s debt by trillions of dollars. Another way to reduce the debt is by issuing bonds to secure money for the country. The country’s household debt is a very serious financial topic that the country struggles with that cannot be ignored. The economy will suffer due to reduced private capital and lower productivity. Many American families are already impacted by the country’s financial downfall that’s why it is important to seek effective solutions and act on clearing up the country’s debt as quickly as possible.