Scary facts about Debt that will surprise you
Debt has become the biggest problem of Americans today. The situation has worsened over time since the Coronavirus outbreak. These circumstances do not seem to improve for quite some time now, and the statistics look horrifying. Reference sources of these statistics are the Federal Reserve Bank of New York and Bankrate surveys. Here are some mind-blowing facts of the American Debt Scenario today.
Americans are $20.83 trillion in debt.
The cumulative debt of all American citizens combined as of August 2020 is $27.1 trillion. It is equivalent to more approximately 80% of the total GDP. The total debt calculated to be $20.83 trillion in 2020 is tremendously increasing over the past two months.
2. Total student loan debt is $1.6 trillion.
Student loans or education loans offer to help students to achieve their academic goals in life. However, these have become a great deal over time. It creates psychological pressure on the student to perform well in academics and take up several odd time jobs to repay their debt.
3. 47% of Americans carry credit card debt
Carrying multiple credit cards has become a status symbol in America. People are often blindly following this trend without looking into the future consequences of the same. Credit card debts have led to more than $1 trillion of loans carried by 47% of America’s population. People in the USA have more credit card debts than savings today.
4. 40% of Americans can make minimum repayments only.
Due to a lack of awareness of debt settlement options, people keep on making repayments. It affects mental health, and people often feel trapped.
5. 65% of Americans in debt have no idea when they will shed it
The debt cycle is so malice and long that 65% of Americans do not even know if they will ever become debt-free. 4 Cs of credit determines how quickly you can repay your debts. However, most people do not even know about it. The 4Cs of credit are Capital, Capacity, Credit history, and Collateral. If you have an understanding of these, then you can very well manage your debts.
6. 25% of Americans expect to die in debt
Long term debts can put you in a vicious cycle of debt repayments. And if not managed effectively, then you will probably die before repaying your full debt.
7. The millennial generation; hit the hardest.
During the pandemic, the worst hit was the millennials who lost their jobs, lacked savings, and stuck in a debt- trap. Millennials have seen two recessions in their relatively short career arcs.
8. Consumers paid down a record of $60 billion.
Americans started 2020 with more than $1 trillion in credit card debt, but a survey finds that they were able to repay $ 60 billion during the first quarter of the year.
It proves that despite the situations being wrong, but with the right guidance, anyone can repay all their debts without a doubt. And we at Credit My Debt are professionalized to help your debt settlement in New York City
The intent of these statistics and debt facts is not to scare you but highlight the reality at present. If you are stuck in debt, then do not be afraid and know you are not alone. Get your debt settled if you wish to be debt-free, and contact us, our agents at CreditMyDebt will provide you best low-interest credit card debt settlement options. Book an appointment with us, and we shall discuss some great plans to make your life easy.