Household Debt Soars To Highest Level Since 2008 Financial Crisis

The American household debt rose to $320 billion in 2022. This is the highest level of American household debt. Increases over the last two decades, and at its highest point since 2008’s financial crisis.

An estimated $17 trillion in debt is owed to households by credit cards, mortgages, student loan, credit card, and auto loans. Analysis WalletHub. Current debt levels have reached $18 trillion in 2008. This is the year when the American housing markets collapsed and the world was plunged in to a deep financial crisis. recession.

At the end of 2022, the average American household had $142,700 of debt. Most of that was due to an average of $100,000.00 in mortgage debt. The balance was made up mainly by an average balance of $13,100 on auto loans and $13,500 on student loans. An additional Study WalletHub published last month that the average credit card debt rose from $8,500 in 2021 to $9.300 in 2022.

Inflationary pressures continue to impact consumers, resulting in higher debt levels. According to a survey, inflation was 6.4% annually in January 2022. Report The Bureau of Labor Statistics released last week that prices for groceries, food, and other necessities increased despite the fact that inflation continued to fall from its June 2022 9.1% rate.

Last month’s overall food inflation was 10.1%, exceeding the headline 6.4% rate. According to the National Average Price of Gasoline, it currently stands at $3.39 per Gallon. This represents a 42% rise since January 2021 when President Joe Biden took office. Data From the Energy Information Administration.

Biden claimed that inflation was a serious problem in his State of the Union Address. “coming down” Despite the high prices of critical products, they are still affordable. “Inflation has been a global problem because of the pandemic that disrupted supply chains and Putin’s war that disrupted energy and food supplies,” He stated. “But we’re better positioned than any country on Earth.”

The commander-in chief also Claim Before his speech, the United States had seen the “fastest gas price decline in eight years” Annualized headline inflation has fallen for “six months” His economic policies. These assertions ignore the fact that energy costs and overall price increases were lower before he took control of the Oval Office.

Data shows that Americans are still spending beyond their means on certain products, despite economic pressures. They rely on a combination consumer debt and savings from the recession. According to a survey, the average debt of those who overspent during the holiday shopping season was $1,549. This represents a 24% rise from the previous year. Survey LendingTree. LendingTree.

According to the Biden administration, the total amount of consumer loans rose from $1.5 trillion to $1.8 trillion in the beginning to the Biden administration. Data Federal Reserve. According to the Federal Reserve. Data According to the Bureau of Economic Analysis this represents a significant drop in rates from before the lockdown-induced recessive recession.