Episode 271 Understanding Debt: Its Impact on Your Financial Future

Debt in America in 2024 continues to skyrocket, in fact the total
household debt is $17.987 trillion. The average debt an American
owes is $104,215 across mortgage loans, home equity lines of
credit, auto loans, credit card debt, student loan debt, and
other debts like personal loans. 


Mortgage debt is most Americans' largest debt, exceeding other
types by a wide margin. Student loans are the next largest type
of debt among those listed in the data, followed closely by auto
loans. Debt tends to peak somewhere around middle age. 


As a whole, this suggests that Americans tend to pay off debt
going into retirement and tend to keep debt balances low in
retirement, especially people over age 70. The largest source of
debt for those under 30 is mortgages. Credit scores are deeply
tied to debt, affecting access to credit and interest rates. It
can be observed among consumers with poor credit, who have
relatively low debts likely because many traditional loans and
credit cards are not accessible to them. 


Additionally, younger people tend to have lower credit scores as
they haven't had the time to build credit like older consumers.
Consumers who are 18-29 also have the lowest average debt
compared to other age groups. Your objective is to pay off all of
your dent if possible so you can lift the burden of lifelong
indebtedness.


 During this session I discuss a few ways to pay down your
debt. Sign up for a free financial coaching call with Paul:
https://tinyurl.com/446ad2yx


 


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