Consumer Debt at Record High

American consumer debt is on the rise, peaking at a record $3.84 trillion. That’s more than the GDP of Mexico, Brazil, and Canada combined. This debt primarily consists of $1 trillion in credit card debt, $1.1 trillion in auto loans, and $1.5 trillion in student loans. The average American family owes $8,600 in credit card debt. That’s greater than directly before the Great Recession. A debt level this high is reason for concern, as the potential for massive defaults could lead to another recession.

Public sentiment regarding debt isn’t encouraging. A resent survey by Creditcards.com found that 38% of respondents did not know when they would be debt free. Sadly, a staggering 30% of respondents believed that they would never be debt free. Americans’ acceptance of debt is no doubt motivated in part by their generally favorable attitude towards most kinds of debt. The same survey found that 95% of those surveyed viewed debt as “good.”

While the vast majority of Americans may view debt as “good,” science is telling us that debt can induce dangerous levels of stress which can result in hypertension, heart attacks, strokes, and ulcers. On a personal note, I represented a combat veteran who told me while filing his bankruptcy that the stress of debt was worse than combat!

Regardless of your belief about debt, everyone can agree that excessive debt can destroy your quality of life. Thousands of bankruptcy filers have trusted us with their bankruptcy, including many Fairfield bankruptcy filers. Feel free to call us to schedule your free consultation.