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ICFE eNEWS #18-16 - August 2018

Americans And Their Debt

By Jim Garnett, a/k/a Ask Mr.G, a member of the ICFE's Board of Educational Advisors

I thought you might be interested to see how Americans are doing with debt. These statistics are supplied by WalletHub.com

Use the financial statistics below to see where you stand. Remember though, that just because you may be doing better than someone else, that does not necessarily imply that you are doing great! In my opinion, the word "great" should be reserved for the time one becomes debt-free.

Budgeting and Spending Statistics
Each year the Bureau of Labor statistics releases an overview of average household money management stats. The most recent report covers spending habits for 2015 listed in the percentage of the total household budget"

32.9% for Housing.
17% for Transportation.
12.5% for Food.
11.3% for Personal Insurance.
7.8% for Healthcare.
5.1% for Entertainment.
4.5% for Miscellaneous.

How Many Americans Keep A Budget?
32% maintain a household budget.
30% have a long-term financial plan that includes savings and investment goals.
Those most likely to budget were those who made at least $75,000 per year.

How Many Are "Treading Water" Financially?
50% of American households live paycheck to paycheck.
19% have saved $0.00 to cover emergency expenses.
31% have less than $500 in emergency savings.
49% are "concerned, anxious, or fearful about their current financial well-being.
Interestingly enough, low income is not always to blame for financial hardship.

Average Debt Balances 2017
Total Debt - $135,924
Mortgage - $180,018
Credit Cards - $16,245
Student Loans - $50,868
Auto Loans - $29,058

Americans In Debt
157 million Americans have credit card debt.
44 million have student loan debt.
1 million borrowers defaulted on student loans in 2016 - that's 4.5% of borrowers.
Credit card delinquencies increased to 2.74% in 2016
Auto loan delinquencies rose to 0.87%.

Auto Loans
In 2016, the average new car auto loan financing cost was $28,667.30.
The average used car auto loan financed $17,241.59.
The average monthly car payment was $499, up from $483 the previous year.
62% of auto loans in 2014 had terms longer than 60 months.
20% had terms from 73 - 84 months.

Student Loan Debt
The average 2016 graduate left school with $37,172 in total debt.
The average monthly payment for borrowers age 20-30 was $351.
Student loan interest rates of July 2016: (1) Direct loans for undergraduates: 3.76%, (2) Direct loans for graduates: 5.31%, (3) PLUS loans for parents: 6.31%.

Mortgage Debt
The average loan amount on a new mortgage is $309,200.
The average interest rate on a 30-year traditional fixed-rate mortgage is 4.1%.
As a result, the average homeowners pays a monthly payment of $1,494.
FHA loans for first-time homebuyers average $190,000.

Ask Mr. G
Jim Garnett, The Debt Doctor
AskMrG Consulting, LLC
2216 SW 35th Street
Ankeny, IA 50023

Paul S Richard PhotoICFE eNEWS is available FREE upon request by visiting our Web site and filling out the contact form, and selecting "Yes" for "Add to Mailing List. Please pass this eNEWS on to your peers and interested others and invite them to subscribe for free. Also, visit the ICFE's new Web site: StudentDebtHelp.org

Sent by:

Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation and founder of the College for Financial Planning in Denver, CO.) The ICFE is dedicated to helping consumers of all ages to improve their spending practices, increase savings and use credit more wisely.

The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its financial continuing education courses programs and resources. In addition to eight Certification courses covering identity theft, credit files, credit repair and credit scoring, among others, it also publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE is a partner with the national Jump$tart Coalition for Financial Literacy and the California Jump$tart chapter. The ICFE staff is also active with San Diego Saves and Military Saves, both offshoots of America Saves.

The ICFE is also an on-line help for consumers who spend too much. ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

The ICFE helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G library, a free eNews service, and an online resource center for students, parents and educators, plus financial education learning tools in the ICFE Book Store.

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