Consumer debt in the U.S. has grown by 25 percent in five years and doubled since the turn of the century, according to the latest Clever Real Estate report
Consumers in southern states hold more debt as a proportion of their income than other regions in the U.S., and baby boomers showed greater levels of financial literacy than millennials, the report found.
Researchers identified three major reasons for skyrocketing debt: credit cards, financial literacy, and location, based on data analyzed by the Federal Reserve.
The average American household held $533 in debt and earned $30,300 in 1950, not including mortgages. In 2018, households had $31,420 worth of debt relative to a median income of $78,646.
In 2018, 7 in 10 borrowers who didn’t pay the full balance on their credit debt paid $113 billion in credit card interest and fees, up from $74.5 billion in 2013.
Revolving debt, comprised mainly of credit card debt, increased 24,500 percent since 1970, adjusting for inflation. Click here for more of The Center Square article.