Debt has risen on all fronts to unprecedented levels…and now accounts for $52 trillion in the USA of which American household indebtedness amounted to an average of $118,000 per household in 2020. That’s a big bill to pay. Here’s how the various forms of U.S. household debt compare…
|Type of Debt||2003 (in trillions)||2020 (in trillions)||% Growth|
|Home Equity Revolving||$0.24||$0.35||+45%|
…A fundamental driver of mortgage activity is interest rates. Given the two variables tend to have an inverse relationship with one another, interest rates have a big impact on the affordability of housing. As long as U.S. interest rates remain near 200-year lows, its likely mortgages will maintain at elevated levels.
…Student debt is the fastest growing as a percentage, having shot up 550% from 2003 to 2020.
Editor’s Note: The original article by Aran Ali has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
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