Us household debt outstanding reached a record $13.95 trillion at the end of September, accounting for about 73% of GDP, according to data released by the federal reserve bank of New York. Home mortgages account for two-thirds of total household debt, followed by student loans at 11%. In addition, auto loans, credit card consumption loans and other absolute value should not be underestimated.


Latest report --


House prices and college tuition are rising much faster than average incomes


The average American household owes a record $144,100, according to a new report from help with debt. Total household debt, excluding mortgages, is also more than $4 trillion. George janas, a personal finance adviser in Orlando, fla., says credit-card rates have been rising, putting pressure on credit-card payers.


"The people who call us are on the brink of trouble, and many are taking out loans to pay off credit card balances, even online, so that they are not subject to the same regulatory restrictions as commercial Banks. This is becoming a trend." Between 2017 and 2018, personal loans in the us rose more than 13 per cent to $130bn, according to the debt help group survey.


"Home prices and college tuition are rising much faster than incomes for the average American, who is spending on credit CARDS and taking out more and more personal loans, laying the groundwork for future financial crises." "The report says.


Stephanie, a community worker in Illinois, has $151,000 in student loans from college and is struggling to pay them back in installments. She said she wanted to apply for a job that paid $30,000 a year, but didn't qualify because it required a master's degree and she only had a bachelor's degree. "I now have a family of my own and only have enough money left each month to pay off the interest on my student loans, minus the necessary expenses. I'm afraid I'll never be able to pay off this student loan." Stephanie said.


Stephanie's case is far from unique in the United States. The Washington post reports that 45 million americans have student loans totaling nearly $1.6 trillion, more than double the number in 2009. The New York times reported that two-thirds of undergraduates graduating in 2018 rely on student loans to complete their education, with an average borrowing of more than $30,000. But paying those debts on time has become increasingly challenging, with 25 percent of people missing payments in 2018.


More than 2.7 million borrowers owe more than $100,000 and about 700,000 owe more than $200,000, according to the U.S. department of education. In terms of age, borrowers aged 25 to 34 owe $489 billion, while those aged 35 to 49 owe $530 billion. Many americans are also saddled with student loans as they age, with figures from the education department at the end of September showing that 1.8 million borrowers over the age of 62 owed $62.5 billion in federal student loans.


The New Yorker magazine --


Many worry that the debt "bubble" will burst one day

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The New York times reported that the United States congress in 2007, a student loan relief plan, has so far successfully get loans from people accounted for 1% of the applicants, a lot of people waiting for 10 years was informed that do not conform to the requirements, why also is varied, including loans or repayment plan illegal, profession not exempt from list, etc. The relief program is fraught with complex requirements that are difficult for borrowers and lenders to understand, and government agencies have made no effort to make it more workable.


Unlike most other forms of debt, student loans cannot be discharged through personal bankruptcy, meaning borrowers are obligated to repay the debt even if they have no income, the debt help group report says. People default for a variety of reasons, including unemployment and inadequate pay. "In this situation, paying off student loans becomes a multi-generational issue for the whole family, with parents and grandparents looking for ways to get loans to help their children pay off the loans."


A recent debt survey of 1,000 adults found that 31% of baby boomers and 32% of millennials don't have emergency savings funds. A new study by northwestern mutual life insurance found that 45 per cent of us debtors feel anxious every month or more, and 15 per cent expect to be in debt for the rest of their lives.


Since the late 1980s, college tuition has risen four times faster than inflation and eight times faster than household income, according to the New Yorker, and many fear that the debt "bubble" will burst one day. The middle class may not seem like the most deserving of sympathy, but according to the survey, many college-educated, budget-constrained middle class families are also showing great vulnerability to student debt, unable to cope with unknown crises or even to pay for unexpected medical emergencies.


In the 1980s, more than half of americans were financially independent by the time they were in their 20s, but now nearly 70 percent of 20-somethings still rely on their parents to support them, the commentary said. "The risks are collective and the consequences are Shared across generations."


The fellow at the brookings institution, a think-tank Isabel sawhill and Christopher in liam said in a statement, U.S. household wealth more and more to concentrate in a few families, in 2016 the richest 1% of households have 29% of the total cost of the American household wealth, the richest 20% of households have 77% of the total cost of the household wealth, the poorest 20% of households have only 2% of the total cost of the family fortune. "The United States is a rich country, but it is increasingly a country where the majority of the wealth is owned by a few, while neither the young nor the broad middle class benefit."