Cars, college, education, houses, and medical care have become steadily more costly, but incomes have remained stagnant for two decades. The median household income has remained at approximately $61,370 since 1999. Families are using credit to fill the gap between their earnings and what they need to spend to remain in the middle class.
Consumer debt has climbed to its highest point at $4 trillion dollars. Housing costs are 290% higher, and the average tuition for a four-year university is up 311%. Additionally, from 1990 to 2017 average personal health-care spending increased by 51%.
In addition, 32% of new-car loans were last six to seven years. A decade ago, only 12% were that long. The shorter-term loans of the past gave many owners several years of driving without car payments. Consumers are finding their vehicles aren’t lasting as long as their loans and their previous loans are being rolled into new auto loans. According to Kelly Blue Book, the average new-car price in the US was $37,285.00.
If you are struggling with ongoing debt call your local Yuba City bankruptcy attorney at (530) 797-4402.
Categorized in: Debt