S.O.S.!
Americans are drowning in debt. It’s so bad, in fact, almost a third of people don’t think they’ll ever pay it off.
What’s going on?
For some, the typical culprits apply. They don’t know how to deal with it (6 percent), they’ve charged unreasonable amounts on credit cards (7 percent) or they simply don’t budget (10 percent).
But according to a recent survey by GOBankingRates, nearly half (44 percent) of Americans think low wages are the main reason they’re in the hole. College tuition and the cost of living are the next most commonly blamed causes (20 percent each).
On average, Americans owe $52,048 a piece. This includes mortgages, credit cards, student loans, auto and medical debt. Men typically owe more than women—$55,081 versus $50,124. But females are slightly more inclined than males to say their income is the reason they can’t get back in the black (44 percent compared to 40 percent).
Around one in three respondents say debt started to become a problem early in life—between the ages of 18 and 24. For over half, it definitely happened before they turned 35.
And interestingly, despite entering their peak earning years around the same time, 35- to 44-year-olds carry a significantly higher debt burden than any other age group (an average of $68,233.57).
The saddest part: none of this is particularly surprising.
Household debt in the U.S. has been on the rise for some time. In fact, this year it reached an all-time high of $13.29 trillion, according to the Federal Reserve—a whopping $618 billion more than the previous peak of $12.68 trillion during the 2008 recession.
GOBankingRates’ survey dug deep, discovering the biggest contributor is growing mortgage debt. Property “owners” owe a total of $9 trillion as of 2018. If it makes anyone feel better, experts claim this type of debt is good debt though.
But no matter which way you look at it, being strapped for cash isn’t ever great. And it’s especially worrisome in “the 401k world” when considering four in 10 people say they’d save more for retirement if that wasn’t the case.
Jessa Claeys is a writer, editor and graphic designer.