Overall debt crisis for Americans is rising
Consumer debt is defined as the amount owed by consumers. It includes debts incurred on purchase of goods that are consumable and/or do not appreciate. In macroeconomic terms, it is debt which is used to fund consumption rather than investment.
According to Jessica Dickler at CNBC: “Americans are diving deeper and deeper into the red. As of 2019, outstanding consumer debt exceeded $4 trillion for the first time, according to the Federal Reserve.”
It does not stop there. How about student loan debt? The student loan crisis in this country has become way too serious to ignore. It is not uncommon to have a conversation with a recent graduate of a major chiropractic institution, and realize they are over $250,000 in debt for their education! Some financial experts say these loans are “lifetime loans,” meaning these recent graduates will pay on these loans for their entire life? According to the Federal Reserve, right now, the total amount of student loan debt in the U.S. is coming in at over $1.6 trillion.
And finally, let’s take a look at the national debt. In 2019, the U.S. national debt reached a new milestone of $22 trillion. According to Frank Miles at Fox News: “The Treasury Department’s daily statement showed that total outstanding public debt stands at $22.01 trillion. It stood at $19.95 trillion in 2017.” Debt has become a “way of life” for consumers and our government. But, is it healthy for the short-term and the long-term?
Time will tell...