13 Warning Signs That You Have a Debt Problem
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Compare your finances to financial statistics for the average American household to see how you stack up..
Keeping up with the Joneses usually leads you down a bad financial path, so why look at personal finance statistics like the ones below?
These types of statistics give you a baseline to compare to as you assess your own financial health. You can assess if a financial challenge is unique to you or if it’s endemic due to a weak economy. Are you falling behind because of debt or are you ahead of the curve with a well-balanced household budget?
Use the financial statistics below to see where you stand. Just keep in mind that financial success is almost always relative. What one household counts as success may be just getting by for another. See how you stack up and use that information to plan your next financial moves.
Each year the Bureau of Labor statistics releases an overview of average household money management stats. The most recent report covers spending habits for 2016.
In 2016 the average household earned $74,664. Average expenditures were $57,311, leaving $17,353 in free cash flow
Here’s how some of the budget categories that you see break down:
A Gallup poll found only about 1/3 of Americans (32%) maintain a household budget
The average American spends less than 4.5 hours a year with scheduled time on their calendar for finances, according to Calendar.com.
A 2017 report in MarketWatch found that half of American households currently live paycheck to paycheck
However, a separate 2017 survey by Career Builder found more than three-fourths of U.S. workers they surveyed struggled to make ends meet.
Narrator: Total American debt is higher than ever[On-screen text] Total Credit Card Debt is $764 billion, Total Student Loan Debt is $1.4 Trillion
Narrator: Credit card debt stands at 7 hundred and 64 billion dollars while student loan debt is over ONE trillion dollars[On-screen text] Total Nonrevolving Debt (Loans) = $2.7 Trillion
Narrator: Non-revolving debt, including student loans, are part of the reason Americans owe 2.7 trillion dollars[On-screen text] More Americans are in debt, too
Narrator: Indebtedness is widespread[On-screen text] 63% of Americans carry credit card balances
Narrator: 157 million Americans have credit card debt[On-screen text] 17% have student loan debt
Narrator: And 44 million people have student loan debt[On-screen text] AVERAGE DEBT BY HOUSEHOLD: Mortgage = $180,018, Student loans = $50,868, Auto loans = $29,058, Credit cards = $16,425, Total Average Debt = $136,643
Narrator: Average American household debt levels are high across the board with close to $50,000 in student loans and over $16,000 in credit card debt[On-screen text] 49% of Americans say they are “concerned or fearful” about their financial well-being
Narrator: It’s no wonder almost half of Americans feel stressed about their finances[On-screen text] Subscribe to our newsletters for updates & news. 1-844-402-3574. Debt.com – when life happens…
Narrator: If debt has you stressed, visit Debt.com or call 884-402-3574 to find the solution that’s right for you
According to the latest 2018 data from the Federal Reserve:
According to a Y charts investment company:
According to NerdWallet’s latest 2017 data this is the average American debt:
|Current avg. balance owed in Q1 2017||Previous avg. balance owed in Q4 2016||Change|
NerdWallet attributes the increase in American indebtedness to the fact that cost of living consistently outpaces income growth. While household income levels grew 28% in the past 13 years, cost of living increased by 30%.
A 2017 CNBC article reveals:
The latest U.S. Census Bureau data put 2017 population estimates at almost 326 million (325,719,178) people; however, 22.8% of that number are under 18. That leaves roughly 251,455,205 adults in the U.S. So…
That shows just how much of a problem student loan debt is for borrowers. More Americans hold credit card debt. However, student loan debt is the second largest source of debt after mortgages. So, fewer Americans have more total debt in that category.
Several reports released in 2017 show more borrowers have fallen behind on their payments:
Narrator: Just because the average household has over $136,000 in debt, it doesn’t mean we’re slowing down in seeking new financing[On-screen text] Average Student Loan Debt is $37,172
Narrator: In student loans, the average graduate now leaves school with over $37,000 in loans to repay[On-screen text] Average Monthly Student Loan Payment for 20-30 year-olds in $351
Narrator: For a borrower age 20-30 years old, your average monthly payment is about $350[On-screen text] Direct Loans: Undergraduate = 3.76%, Graduate = 5.31%, PLUS parent loans = 6.31%
Narrator: If you plan on getting new student loans, here are the current interest rates for federal loans[On-screen text] Average credit card APR = 15.59%, Credit Cards with Bad Credit = 23.04%
Narrator: For new credit cards, interest rates are higher now than they were in 2016. But a bad credit score means an even higher APR.[On-screen text] Average credit card limit if you have a bad credit score (300-499) = $509, excellent credit score (781-850) = $9,543
Narrator: Your available credit limit also depends on your credit score[On-screen text] 62% of auto loans have terms OVER 60 months, 20% have terms from 73-84 months
Narrator: Auto loans today have longer and longer terms[On-screen text] Average car payment = $499, up from $483 last year
Narrator: Yet the average monthly payment is up to almost $500[On-screen text] Average car loans: New Car = $28,667, Used Car = $17,242
Narrator: The average amount financed for a new car versus a used car varies by more than $10,000[On-screen text] Average mortgage = $309,200
Narrator: Finally in mortgages, the average home loan as of January 2017 was over $300,000[On-screen text] Average 30-year mortgage APR = 4.1%, Average monthly payment = $1,491
Narrator: With an average interest rate of 4.1% on a 30-year mortgage, the average monthly payment was almost $1,500[On-screen text] Subscribe to our newsletters for updates & news. 1-844-402-3574. Debt.com – when life happens…
Narrator: If you need help to pay off all this debt, visit Debt.com or call 884-402-3574
According to a WalletHub auto financing report:
Many Americans also opt for longer terms now. Edmunds reports:
Experian credit data reported on Motley Fool shows credit limits vary based on credit score:
Following 2 interest rate hikes this year, CreditCards.com reports average credit card interest rates broke records in 2017:
More than 40 million Americans have student loan debt, Time Money reports.
Almost six million (5.9 million) — or 14 percent — owe more than $50,000, says a study from Brookings Institution.
Brookings Institution reports $1.4 trillion in student debt. Student loans are second-largest household debt in the U.S. following housing.
The Department of Education collected more than $4.4 billion in defaulted student loans in the first quarter of 2017.
StudentAid.gov provides current interest rate information for federal student loans as of July 1, 2017:
According to a 2017 article in The Motley Fool:
Narrator: Good credit is a big part of your ability to be financially successful. So, how do average Americans score today?[On-screen text] 695 was the average 2016 FICO score
Narrator: Americans actually have improved their credit in recent years. In fact, FICO scores hit a record average high last year[On-screen text] 41% of people 30-39 years old have deep subprime credit scores between 300-499; likewise, only 38% of people under 30 have scores that low
Narrator: Although credit scores usually improve with age, people 30 to 39 years old have the highest number of subprime credit scores[On-screen text] Average family scores: Low income = 644, High income = 775
Narrator: And there’s more than 100-point difference in scores from low-income earners to high-income earners[On-screen text] For FHA home loans 689 is the average FICO score vs. a 755 score for a traditional mortgage
Narrator: Homebuyer credit scores vary from 689 for FHA loans to 755 for traditional loans[On-screen text] People who buy used cars have an average score of 643 vs. new car buyers at 714
Narrator: Scores are also higher for new car buyers versus used car buyers[On-screen text] 591 is the average score of bankruptcy filers
Narrator: If you declare bankruptcy, you may fall into a subprime credit score category[On-screen text] Subscribe to our newsletters for updates & news. 1-844-402-3574. Debt.com – when life happens…
Narrator: For more tips and tools on how to build your credit, visit Debt.com or call 884-402-3574
The average FICO credit score broke records in 2017 – the average American has a 700 FICO score.
According to a report on ValuePenguin:
WalletHub also released a map that shows the 2017’s best and worst credit scores by city:
Narrator: Financial stability is gained by having savings, but most Americans are falling behind[On-screen text] Only 37% of Americans can cover a $500-$1,000 emergency
Narrator: Only 37 Percent have enough savings to cover a $500 to $1,000 emergency[On-screen text] Average household savings = $33,766, Median household savings = $5,200
Narrator: According to the federal reserve the average household savings is about $33,000, but the median saving for all working-age families is just $5,200[On-screen text] Income $25,000 or less, Savings $500 or less; Income $50K or less, Savings $1,500; Income $115K or more, Savings $10,000; Income $160K or more, Savings $50,000
Narrator: Average savings increases exponentially as incomes grow[On-screen text] 23% of Americans have less than $10,000 saved for retirement
Narrator: Retirement savings are on shaky ground; almost 1 in 4 Americans having less than $10,000 saved[On-screen text] 33% of Americans have $0 saved for their golden years
Narrator: In fact, 33% of Americans have $0 saved for retirement[On-screen text] 8% of Americans have $100K – $199K, 5% have $200K – $299K, 13% have $300K or more saved
Narrator: And only 26% of have more than $100,000 saved[On-screen text] Subscribe to our newsletters for updates & news. 1-844-402-3574. Debt.com – when life happens…
Narrator: For more information on how to eliminate debt and save effectively, visit Debt.com or call 844-402-3574
A GOBankingRates report finds 13.7 percent of Americans have $0 saved for retirement.
A separate report by Smart Asset finds:
Article last modified on October 15, 2019. Published by Debt.com, LLC