The State of the US Debt Crisis
Audio version available here:
Length: approx. 1 min. 20 sec.
Americans are feeling the effects of heightened financial pressure following a trend of high spending. The Federal Reserve Bank of New York reported that the total US consumer debt has soared to $17.5 trillion. Most of this debt can be attributed to credit cards, auto loans, and mortgages.
As a result of this surge of debt, delinquencies have also seen an uptick, particularly in credit cards and auto loans. In the final quarter of 2023, “8.52% of credit card balances and 7.69% of auto loan balances became delinquent”, the highest rate seen in a decade. Recent data on student loan delinquencies is not yet available despite payments restarting in 2023. However, combined with the current debt trend, student loan repayments are undoubtedly adding to the financial stress felt by Americans.
This doesn’t paint a reassuring picture for the future, with credit analyst Matt Schulz attributing several factors of rising debt, inflation effects still being felt, and interest rates at a high to a “pretty tough” near future.
But that doesn’t mean you have to resign yourself to a lifetime of debt. Knowing your numbers and practicing sound financial stewardship can set you up for success in overcoming your current debt burden. For business owners who are ready to take charge of their finances, reach out to our financial experts XQ CPA for the right guidance. We would love to help make your business successful.
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