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
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
• 17% for Transportation.
• 12.5% for Food.
11.3% for Personal Insurance.
• 7.8% for Healthcare.
5.1% for Entertainment.
• 4.5% for Miscellaneous.
Many Americans Keep A Budget?
• 32% maintain a household
• 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.
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
• 49% are "concerned, anxious, or fearful
about their current financial well-being.
enough, low income is not always to blame for financial
Average Debt Balances 2017
• Total Debt -
• Mortgage - $180,018
• Credit Cards - $16,245
• Student Loans - $50,868
• Auto Loans - $29,058
Americans In Debt
• 157 million Americans have credit card
• 44 million have student loan debt.
• 1 million
borrowers defaulted on student loans in 2016 - that's 4.5% of
• Credit card delinquencies increased to 2.74% in
• Auto loan delinquencies rose to 0.87%.
• In 2016, the average new car auto loan financing cost
• The average used car auto loan financed
• 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
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%.
average loan amount on a new mortgage is $309,200.
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 $190,000.
© Jim Garnett, The Debt Doctor
AskMrG Consulting, LLC
2216 SW 35th Street
Ankeny, IA 50023
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Also, visit the ICFE's new Web site: StudentDebtHelp.org
Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by
the late Loren Dunton (creator of the Certified Financial Planner (CFP)
designation and founder of the College for Financial Planning in Denver, CO.)
The ICFE is dedicated to helping consumers of all ages to improve their spending
practices, increase savings and use credit more wisely.
The ICFE is an
award winning, nonprofit, consumer education organization that has helped
millions of people through its financial continuing education courses programs
and resources. In addition to eight Certification courses covering identity
theft, credit files, credit repair and credit scoring, among others, it also
publishes the Do-It-Yourself Credit File correction Guide, which is updated
annually. The ICFE has distributed over one million Credit/Debit Card Warning
Labels and Credit/Debit Card Sleeves world wide.
The ICFE is a partner
with the national Jump$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