America is Overwhelmed by Debt

MoneyIt’s no secret that the U.S. is riddled with debt. However, until recently, few have known how much the average American is in the hole. In total, the U.S. owes a total nationwide debt of $12.29 trillion dollars.

About two-thirds of this debt is home mortgage debt, which may be the result of 59% of homeowners misunderstanding the terms and details of their mortgage. If they perhaps had understood their agreement, they may not have been in such debt.

Additionally, only 10% — or $1.26 trillion — is because of student loans.

However, credit card debt is a completely different problem entirely. Statistics show that the average American credit card debt is anywhere between $3,600 and $5,700. While that may not sound too bad considering the average American household income is $55,000, it can be detrimental once you consider interest rates and late payments.

For example, if those who pay their bills on a monthly basis are taken out of the equation, the average credit card debt jumps to $16,047 per person. If the debtor only makes minimum payments every month and does not acquire any new debt, it would take about 14 years to retire that balance. With the average interest fees factored in, the $16,407 would cost around $40,200 to pay off, according to AOL.

In addition, the trends are surprising. Men carry more than $2,000 more in debt than women, and millennials and those over 70 years old carry the least. Those between 45 and 54 years old carry the most.

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