ARAG Legal Insurance - Badge
Avvo Rating - Badge
Lawyers.com - Badge
Google Rating - Badge
Better Business Bureau - Badge

US Household Debt Still on the Rise

Liviakis Law Firm Team

As we enter the last two shopping weeks before Christmas, more and more people are reaching for their credit card, and unintendedly adding to the record level of consumer debt in America. The total household debt in the United States continued its rise last quarter reaching just under $13 trillion dollars total. Additionally, the Federal Reserve Bank reports that home loans, auto loans, credit card US household debt are still on the rise. So should you be worried?

Credit Card Debt

A new record for outstanding, revolving debt has been reached this quarter with credit card debt reaching over 1.021 trillion. This tops the previous record of all time highest consumer debt set back in April 2008. Credit card debt has been growing by nearly 5% per year through major banks and credit card issuers.

Auto Loan Debt

Many individuals are keeping a close eye on the increase in auto loan debt that Americans are amassing. Auto loan debt hit a collective $1.2 trillion at the start of 2017 which represented a 9% increase. What’s more concerning about U.S. auto loan debt is the number of delinquencies, being driven by subprime auto lending.

Mortgage Debt

The Federal Reserve reported that Q3 growth of mortgage debt outstanding experienced only a trivial increase. Balances on mortgages during this time only increase 0.6%, which is nominal compared to the 1.9% increase in auto loan debt, a 3.1% increase in credit card debt, and a 1% increase in student loan debt.

So what does the increase in household debt mean for the average consumer? Most individuals shouldn’t be alarmed, as household debt as a percentage of GDP has been on the rise in both advanced and emerging market economies like that of the U.S. It’s not a surprise that the increase in household debt increased with the nation’s GDP this previous quarter. It should be noted that a large increase in subprime debt is what triggered the world financial crisis in 2007. If the debt continues to pile up, it could mean that loan providers start to give fewer loans. If you are personally carrying household debt, then it’s time to work on paying it down in 2018.

Contact our Sacramento bankruptcy office for more information about how to get out of debt today!

Our Office

Former Office
1215 K St

Sacramento, CA 95814

Phone: 916 459 2364
New Office
2377 Gold Meadow Way
#100

Gold River, CA 95670

Phone: 916 459 2364

Client Reviews

Mr. Liviakis is extremely knowledgeable and answered all of the questions that we had about our situation. He made a really difficult time manageable with his help and expertise. I would definitely recommend...

Lindsey Joyner

Mik is a great attorney. Very friendly & professional. Price is was bit high compared to other firms. Probably the highest I've seen. If price your thing, checkout other firms. Other than that, Mik will get the...

Oi Vinn

Mik helped us save our home and settle with creditors during the pandemic after we were forced to close our family business for over a year. I am forever grateful. He was kind and professional and followed up...

Jina and Steven Hale

Mr. Liviakis was timely and professional. He patiently answered questions and explained the process. He provided handouts that clearly outlined due dates. The firm's paralegal was very easy to work with. I...

Wes Pohl

I nothing but great Experiences, and great service.

Tony Boone

Positive: Professionalism, Quality, Responsiveness, Value

Linda Todd

Contact Us

Fill out the contact form or call us at (916) 459-2364 to schedule your free consultation.
  • Language.png Free Consultation
  • Phone.png Phone Appointments Available
  • Gavel.png Talk to Award Winning Attorney Today

Leave Us a Message