14 Apr The Rising Tide of Consumer Debt
THE RISING TIDE OF CONSUMER DEBT - Consumers are borrowing again, making a big economic splash. Historically, spending stimulates the U.S. economy, but too much debt can harm overextended consumers. Have spending or investment questions to help manage your debt? Talk with an LPL financial advisor today.
$8.05 Trillion Up 1.9% (+$152T)
Good news, while borrowing peaked, balances fell for the lowest-credit score borrowers—the core of the subprime mortgage crisis. Consider refinancing at lower rates.
STUDENT LOAN DEBT
$1.08 Trillion Up 5.2% (+$53T)
The biggest percentage increase, swelling debt for college grads, can affect their ability to buy cars and homes later. Start making payments immediately and pay more than the minimum amount.
AUTO LOAN DEBT
$863 Billion Up 2.1% (+$18B)
Spending on big-ticket items is rising, helping the economy do the same. Determine if you can make additional
payments toward the principal amount.
CREDIT CARD DEBT
$683 Billion Up 1.6% (+$11B)
Consumers are spending again, but more mindfully. Don’t keep adding debt; pay higher interest rates off first and consider consolidating.