Consumer Debt in America-Where Our Country Stands Today

Written By Minh Tong
Aug 27, 2018
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Consumer Debt in America: As Americans, we’re pretty much all in debt. How bad is the debt crisis exactly? That depends on who you ask. And when. The Federal Reserve keeps a close eye on trends influencing lending, debt, and the overall economy. A new quarterly report is released every three months. The Federal Reserve report in June 2018 was pretty dire. US household debt rose to its highest amount ever: $13.29 trillion in the second quarter.

That figure is mind boggling and unfortunately consumer debt is only expected to continue to soar. Chances are you own—or owe—a small portion of our nation’s consumer debt. But not all consumer debt is created equal.

Unsurprisingly, most of the consumer debt is taken up by mortgages and other debts related to housing. Currently Americans owe a whopping $9 trillion, which is an increase of $308 billion from last year. American Banker conducted an analysis of more than 4,300 homeowners and found that over a two-year period, they had an average increased spending of $9,327.

A smaller but still sizeable portion of money tracked by The Federal Reserve is taken up by auto loans, which comprise $1.24 trillion dollars of the total consumer debt which is $48 billion more than last year’s second quarter. That may seem like a relatively small figure of the whole, but auto debts have been on a massive upward trend over the last six years.

Americans are notorious for swiping that plastic strip without thinking about the consequences, and the numbers seem to agree: credit card debt has hit $1.02 trillion. That’s a startling figure for a payment method often used for smaller items, such as gas, groceries, and Starbucks. Consumers continue to spend more and save less, consumer spending increased by 0.6% with personal income increasing by only 0.3% according to the Bureau of Economic Analysis.

Feeling intimidated by that $13.29 trillion? We all probably should. It’s money that will have to be paid back, with interest. If you’d like help reducing your own piece of the American debt pie, contact Americor to discuss a variety of debt solutions that can save your wallet and your future.

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Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

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