According to recent statistics, American consumers have reached a new milestone in the accumulation of household debt. Researchers place total household debt at $12.7 trillion, which is more money than was owed at the peak of the 2008 credit bubble. That previous high mark was achieved at the same time that the global financial system started to collapse. The numbers suggest that more and more consumers in Tennessee and beyond have a growing need for debt management solutions.
Experts believe that a significant portion of currently held debt lies in student loans. While obtaining an education is an important pursuit that can have numerous benefits, economists also point out that heavy student loan debt can delay graduates from spending money on homes, cars or other big-ticket items. That can stunt economic growth, further limiting the rate of financial progress.
In other cases, high levels of debt are connected to credit card debt and other unsecured borrowing. While student loans are certainly tied back to a valuable source, consumers with significant credit card debt often have little to show for it. Gaining control of credit card debt while also juggling cost of living expenses can be challenging.
Statistics showing increasing levels of household debt are often viewed as signs of healthy economic growth. However, Tennessee residents who are faced with high levels of unsecured debt often fail to see the benefit in their daily lives. For those individuals and families, finding an effective debt management solution is a top priority. Those solutions can range from a structured repayment plan, up to and including personal bankruptcy.
Source: The New York Times, "Household Debt Makes a Comeback in the U.S.", Michael Corkery and Stacy Cowley, May 17, 2017