Skip to comments.U.S. Household Debt Is Totally Out Of Control
Posted on 11/30/2012 2:08:22 PM PST by Lorianne
We have a stunning chart today which illustrates why taking on boatloads of student debt is not a good "investment" for most young people.
JFC! (See here if this acronym is new to you).
The New York Fed has updated the household debt numbers for Q3:2012. Read it and weep.
In its latest Quarterly Report on Household Debt and Credit, the Federal Reserve Bank of New York announced that in the third quarter, non-real estate household debt jumped 2.3 percent to $2.7 trillion. The increase was due to a boost in student loans ($42 billion), auto loans ($18 billion) and credit card balances ($2 billion).
The Quarterly Report on Household Debt and Credit is based on data from the New York Feds Consumer Credit Panel, a nationally representative random sample drawn from Equifax credit report data. During the third quarter of 2012, total consumer indebtedness shrank $74 billion to $11.31 trillion, a 0.7 percent decrease from the previous quarter. The reduction in overall debt is attributed to a decrease in mortgage debt ($120 billion) and home equity lines of credit ($16 billion), despite mortgage originations increasing for a fourth consecutive quarter.
The increase in mortgage originations, auto loans and credit card balances suggests that consumers are slowly gaining confidence in their financial position, said Donghoon Lee, senior economist at the New York Fed. As consumers feel more comfortable, they may start to make purchases that were previously delayed.
(Excerpt) Read more at declineoftheempire.com ...
If you had kept government out of Education and healthcare you'd have lower prices as you see in consumer electronics.
Hey dumb liberals you vote for democrats so you vote for higher prices and to become slaves of the government
I paid off my college loan over a decade ago. Really working to eliminate any debt otherwise, too. Only have a mortgage, $50K to go. No credit card debt, no auto loan.
I guess I’m a sucker and a fool. My gut tells me to rid myself of it though, strongly, so that’s what I’m doing.
Much like housing debt - I believe a lot of this “student loan debt” will be proven to be fraudulent.
It is made on fictitious names for bogus coursework. Certainly, many borrowers (but not all) are getting the money with no intention of paying it back.
The Government is giving away “free” money. There will always be plenty of takers.
My biggest is my mortgage. No credit card debt and no student loan debt. If I take out loans it’s against my 401k so I get the interest. The exception will be my car loan in the Spring to get my new Dodge Challenger.
Not being a debt slave is a better way to live.
Congratulations. You are doing well!
Not at our house.
We have a mortgage and...
we have a mortgage.
No problem, because any day now Obama’s going to forgive everyone’s tuition loans (and make the “rich” pick up the tab).
What exactly is a “real” degree? I know art students who make we’ll over $80k. But that would be considered by most to not be a real degree. Or do you mean the online degree mills?
Earning has more to do with the person than the degree.
By real degree I mean something that is marketable. Not one in something like transgender studies. The “studies” degrees are a the rage now.
Funny, it doesn’t feel like it. The more frugal I am, the more expenses increase to absorb the freed up income. Feels like I’m going backwards. I look back on the peak years of owning my own business and it seems like a dream, hitting the restaurants and bars every night, no money worries whatsoever, could buy most anything I wanted and still have substantial savings. Sailed right through 9/11, it was a record year. Started sensing something wrong about 2005, started reining in. Muddled along doing OK, then 2007 was an awful year, customer buyouts and bankruptcies, customers started getting hinky, slow pay, expensive nitpicks and attempted chargebacks, followed by 2008 when work in the pipeline just ... stopped. I had to shut down, next to nothing coming in and thousands going out. Took a job with a former customer and have been there ever since.
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