Inside: Let's Talk About Debt
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Here's what you need to know about U.S. household debt from the Federal Reserve Bank's Household Debt and Credit Report (Q3 2017)

  • Overall: The $13 trillion of household debt is $280 billion above its 2008 third quarter peak, and 16.2% above the 2013 second quarter trough.
  • Mortgage balances: remain the highest component of household debt, comprising $8.7 trillion
  • Mortgage delinquencies continued to improve, with 1.4% of mortgages 90+ days delinquent
  • Student loan debt: $1.4 trillion, with 11.2% 90+ days delinquent
  • Credit card balances: increased by $24 billion, with 4.6% 90+ days delinquent
  • Auto loans balances: increased by $24 billion to $1.2 trillion, continuing a six year trend, while 90+ day delinquencies increased to 4%

Financial Literacy Now or Calamity Later

In the run-up to the collapse in 2008, U.S. household debt had reached a total of $12.68 trillion. The damage to the credit of the average American family that resulted from the crisis caused that number to drop sharply in the following years. The troubling news is that the debt level has rebounded and has surpassed pre-crisis levels, rising to $12.73 trillion in the first quarter of 2017. The news calls to mind the old axiom that “Those who do not remember the past are condemned to repeat it.” The question is, have we learned anything since then, and are we in trouble? Click to read more.

Why Do Younger Workers Have So Much Financial Stress?

What’s giving millennials so much agita? For one thing, student loans. Nearly a quarter of millennials blame high levels of student debt for their money-related anxiety. But given that the average borrower aged 20 to 30 is on the hook for a monthly payment of $351, that’s not particularly shocking.

And let’s not forget general debt — something younger workers are also familiar with. The average borrower under 35 carries an outstanding credit card balance of $5,808, and at 20% interest, which is in the ballpark of what many cards charge, that’s a lot of potentially wasted money. Throw in the fact that younger workers are typically dealing with lower levels of income, and it’s no wonder they’re so overwhelmed.  Click here to read more. 

Click here for links to useful sites and information about managing debt and credit
The PFW Scale™ is an effective way to evaluate employee financial stress. Click here to learn how your organization can benefit by using the Personal Financial Wellness Scale™
Personal Financial Employee Education Fund (PFEEF)
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