Do You Know How Much Debt Is the Average American In?

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It is always horrible and terrifying whenever we are talking about debt. Sure, there is no way someone is willing to have debt. Everyone dreams of having good financial condition. However, no matter how good you are in planning your finance, there are still some unpredictable conditions which can turn things upside down. And yes, most of you are not really aware after such unpredictable conditions really hit you which then leave you hopeless and confused. When you have started to realize that there is something wrong with your finance, the amount of debt you have may already be overwhelming. And believe it or not, that’s what the average American experiences.

Yes, it can be said that there is no American who doesn’t have debt. And there are so many reasons to make it happen including how the Americans tend to be rather consumptive and the ease to get credit card. Therefore, the question of how much debt is the average American in may appear. If you are an American, you need to take this inconvenient truth. For your information, according to the survey done lately the amount of the debt owned by average American is different because the type of the debt is also different. Here is the further information about it.

  • Credit Card

Like what has been mentioned before, the fact that Americans like to be consumptive is the main cause for the quite big amount of the average credit card debt. It’s been noted that about $16,000 of debt is experienced by the average American. That amount is really big for sure. To be honest, the consumptive behavior is not the only cause. High interest rate should also be blamed. However, even though all Americans know about such high interest rate, they still don’t hesitate to get credit card due to various benefits it offers despite the fact that there are also some potential disasters following.

  • Mortgage

This kind of debt is the biggest one among the other type and it’s actually really understandable since we are talking about the debt which is related to the property. According to the survey, the average American has about $170,000 which is definitely a fantastic amount.

  • Auto Loans

The next, we have auto loans. Based on the survey, the amount of this kind of debt reaches about $28,000.

  • Student Loans

This may not be applicable to average American by considering that not all Americans are students. However, it’s necessary for you to know about this kind of debt as the amount reaches more than $50,000. It means that the average students in the America has such amount of debt.

  • Other Type of Debt

The debts which have not been covered above like the personal loans is included here. And in total, the amount is about $132,000.

Use this kind of information to see the strength of your own finance. For instance, you can ask yourself whether you have that much of debt or not and whether you have good income or not. It’s good to always maintain nice finance.

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