I have read some thoughtful, or even telling, astounding data on the credit and spending of ordinary American people.
– The average American (non-household!) Pays an average of $ 279,000 for his or her loan interest only. (Least in Iowa – $ 129,324 – and most in Washington DC – $ 452,000.) That is how much he has to pay for his lifetime loans, including interest on cars, homes, student loans, credit cards.
Just how can we measure this: the average American household earns $ 54,000 a year, and the median per capita income is $ 28,000.
(Unfortunately, the data is difficult to compare because the median is different from the average (I have already written about it) and household debt is not double that of a person because although car loans and credit cards are likely to double, mortgages are up to 30% to many of them, but we feel the number of years an average American has worked in his life just to pay off his loan interest.)
– According to surveys, 43% of US households simply spend more each year than they earn. 52% of employees live from pay to pay and 42% do not have enough liquid reserves for three months. (Source)
- 6.5% of middle-aged workers were banned from paying their salaries last year due to debt.
Including financial institutions and tax office. Deduction for maintenance payments is not included.
– Household consumption and GDP have both increased in recent decades, with inflation-adjusted average wages in 2011 being the same as in 1978. In other words, people have no more money to buy than they did in 1978, yet managed to increase consumption by 30% during this period.
– Last year, 16.4 million new cars were sold in the United States at an average price of $ 32,957 (passenger cars only). Do we still remember the average annual household income?
– The average car loan at the end of 2014 was $ 27,429 for a new car and $ 18,258 for a used car. The average interest rates were 4.6% and 8.8% respectively, with an average maturity of 66 months and an average installment of $ 467. You have to know to live. (Source)
– The number of car loans in the United States is 71 million, totaling $ 975 billion ($ 268 trillion). This represents an annual growth of 9.3% and an increase of 6.5% in volume over the year. In October 2014, only 21.2 million new car loans were disbursed until October, 31% of which were subprime loans (source).
– Since the outbreak of the credit crisis, nearly 5 million completed executions on US real estate have been completed, however, at the end of 2014, there were still 567,000 executions in progress. (Source)
– 64% of American residents own real estate, 58% still have debt. The average size of a mortgage is $ 280,500. (Source)
– The total debt of the American population is growing dynamically again, now at $ 11.71 trillion, 69% of which is mortgages. The proportion of student loans increased from 3% in 2007 to 10% in 2014. (Source)
And about American credit card debt, I’ve written about credit cards in numbers.
After that, I’m just amazed that there is only the world of credit balloons every 70 years, not every five years.
And I congratulate economists in particular for calling on the public to invest more in borrowing to grow the economy again. To get people more credit, drive an even more expensive car and live in a bigger house. In their view, states that are also indebted to the neck should contribute with all sorts of incentives, including by taking out additional loans. I’ve already written more about it here: A world without credit.
If you want to know more about finance, come to the Academy, and the next one starts every three or four weeks. For just $ 25,000, you will learn everything you need to know in a basic way in six steps.