The Consumer Debt Burden - Microsoft · HOUSING DOMINATES HOUSEHOLD DEBT ... surpassing the...
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HOUSING DOMINATES HOUSEHOLD DEBT • The average mortgage is $327,833 • The average mortgage fixed interest rate is 4.22% • This represents 68% of total household debt • Since 2007, home-ownership is down 11% for those under 30 MILLIONS HAVE OVERDUE MEDICAL DEBT • 42.9 million Americans have overdue medical debt • These patients owe an average balance of $1,766 • 31% owe $5,000 or more • 13% owe $10,000 or more AUTO LOAN DEBT IS RAPIDLY GROWING $30,621 is the average auto loan for a new car • $506 is the average monthly payment • On average, borrowers pay for 68 months • The average APR for a new car loan is 4.79% • This represents 9.3% of total household debt • Deliquency rates are up nearly 2x from 15 years ago • American household debt has reached a new high at $12.8 trillion, further surpassing the previous peak credit bubble levels of 2008. Although consumers are willing to take on more debt, wage growth has remained subdued for the past decade. We believe this consumer debt burden has been, and will remain, a headwind to overall economic growth for the U.S. – especially as interest rates rise. The Consumer Debt Burden Over the next few weeks, we’ll take a deeper dive into consumer debt on our Markets & Economy blog Subscribe today at manning-napier.com/signup An aging population and increased costs add to the problem CREDIT CARD BALANCES ARE INCREASING • The average American household has $7,938 in credit card debt • The average consumer has 9 credit cards • This represents 6% of total household debt Delinquency rates and overall debt amounts are soaring More Americans are failing to make payments STUDENT LOAN DEBT CONTINUES TO GROW • 43 million Americans carry student loan debt • Nearly 70% of new graduates leave college with student debt • The average balance for 2016 graduate borrowers is a record $37,000 • Borrowers pay an average of $351 a month • This represents 10.5% of total household debt • The deliquency rate is 11.2%—well above historical averages More young Americans are opting-out of home-ownership Deliquencies remain low, but are rising Sources: Wall Street Journal, FICO, Federal Reserve, FINRA, Mortgage Bankers Association, New York Fed Consumer Credit Panel, Equifax, Experian, StudentLoanHero, Cleveland Federal Reserve, CNBC, Statistica, MarketWatch SMA-IG003 (9/17)
Transcript of The Consumer Debt Burden - Microsoft · HOUSING DOMINATES HOUSEHOLD DEBT ... surpassing the...
HOUSING DOMINATES HOUSEHOLD DEBT
• The average mortgage is $327,833
• The average mortgage fixed interest rate is 4.22%
• This represents 68% of total household debt
• Since 2007, home-ownership is down 11% for those under 30
MILLIONS HAVE OVERDUE MEDICAL DEBT
• 42.9 million Americans have overdue medical debt
• These patients owe an average balance of $1,766
• 31% owe $5,000 or more
• 13% owe $10,000 or more
AUTO LOAN DEBT IS RAPIDLY GROWING
$30,621 is the average auto loan for a new car •
$506 is the average monthly payment •
On average, borrowers pay for 68 months •
The average APR for a new car loan is 4.79% •
This represents 9.3% of total household debt •
Deliquency rates are up nearly 2x from 15 years ago •
American household debt has reached a new high at $12.8 trillion, further surpassing the previous peak credit bubble levels of 2008. Although consumers
are willing to take on more debt, wage growth has remained subdued for the past decade. We believe this consumer debt burden has been, and will remain, a
headwind to overall economic growth for the U.S. – especially as interest rates rise.
The Consumer Debt Burden
Over the next few weeks, we’ll take a deeper dive into consumer debt on our Markets & Economy blog
Subscribe today at manning-napier.com/signup
An aging population and increased costs add to the problem
CREDIT CARD BALANCES ARE INCREASING
• The average American household has $7,938 in credit card debt
• The average consumer has 9 credit cards
• This represents 6% of total household debt
Delinquency rates and overall debt amounts are soaring
More Americans are failing to make payments
STUDENT LOAN DEBT CONTINUES TO GROW
• 43 million Americans carry student loan debt
• Nearly 70% of new graduates leave college with student debt
• The average balance for 2016 graduate borrowers is a record $37,000
• Borrowers pay an average of $351 a month
• This represents 10.5% of total household debt
• The deliquency rate is 11.2%—well above historical averages
More young Americans are opting-out of home-ownership
Deliquencies remain low, but are rising
Sources: Wall Street Journal, FICO, Federal Reserve, FINRA, Mortgage Bankers Association, New York Fed Consumer Credit Panel, Equifax, Experian, StudentLoanHero, Cleveland Federal Reserve, CNBC, Statistica, MarketWatch
SMA-IG003 (9/17)
