Americans are currently grappling with debt. Long before the economic recession, Americans were just treading on dangerous grounds, but once the financial crisis set in, those who were struggling with debt sunk into it even more. The situation has been growing from bad to worst with economists projecting the worst. As the situation worsens, many people have been turned into insolvency or foreclosure. This has meant difficulties settling their financial obligations or meet their daily needs.
Although economists agree that the U.S economy is slowly regaining its lost glory, many Americans are still unable to come out of the debt. Many people are now growing weary of the debt crisis. While being in debt is something bad since it helps us expand businesses, send kids in colleges and to be paid in the future. In fact, capitalism was primarily built on the belief that credit creation has the ability to cause development.
Today, the U.S has developed a number of legal frameworks that advance the rights of borrowers with respect to illicit debt collection practices. These federal and state regulations apply differently. Here are some of the types of debts people are sinking in according to a recent survey.
Consumer debt—Data from the lending sector has shown that by the end of the second quarter of 2019 consumer debt had reached $14 trillion, the New York Federal Reserve. This is the twentieth consecutive quarter that has seen the same trend of increasing debt. By the second quarter, the debt level was $13.86 trillion, which was up $219 billion, compared to the same period the previous year that saw a consumer debt of $12.68-trillion.
There has been a general and consistent growth in all four types of debt—home, auto, credit cards, and student loans. The mortgage debt also rose by $407 billion in 2017 up from $9.4 trillion in the same period during the previous year. On the whole, the increase in debt is a positive trend in the economy since it demonstrates that the housing sector is recovering. On the other hand, household debt has also been growing consistently for the last five years in a row. However, the mortgage balance growth has remained on an all-time low since 2013.
The Auto debt in quarter two of 2019 stood at 1.3-trillion, which was a lip of $59-trillion, compared to the same period in 2018. Since the decision of the Federal Reserve to lower interest rates in 2008 to fight the problem of the recession, the country saw a general increase in Auto loans. This is because many people to advantage of the incentive to pursue long-term loans.
Student Loans—they have been on a rising trend, escalating to a whopping $1.48 trillion in quarter two of 2019, which was up by $73 billion, compared to the same period in 2018. Since the time the Federal government took control of the student loan program in 2010 to replace the former arrangement in which an administrator was in charge, student loan charges were dramatically cut and access to student financing was expanded. Many people have said this was a win-win situation since not only did the interest rates drop but also availability was increased in order to encourage the growth of higher education but the debit balance has been staggering.
With this information, it is now clear that you are not alone if you are also struggling with debt. But the good news is that Elite Document Management services are here to help you plan your debt and overcome your situation. We have been in the business of helping people manage their debt by liaising with their creditors to create an affordable repayment schedule.
A Debt Management Plan is what every person drowning in debt needs to repurpose their finances. With the growing trend of the debt crisis, lenders are now beginning to push borrowers to repay their loans, but this isn’t helping anymore—many are now risking foreclosure and repossession. Elite Document Services will help you file necessary papers to help people like you get the best financial solutions to their needs.