TheStreet’s Post

U.S. Household Debt Is at an All-Time High This includes mortgages, home equity revolving debt, auto loans, credit cards, student loans and other consumer lending such as retail cards. The total household debt of $17.3 trillion entering 2024 is a new high for the U.S. However, while mortgages and auto loans, for example, are backed by collateral that likely eventually become a pure asset, credit card accounts are simply debt on a ledger. Paying it off does not result in having an asset. experts have predicted that the runaway inflation that has dramatically increased the cost of goods and services since 2020 will continue its recent trend of slowing down in 2024. Such a development would bring relief to Americans who have spent the last several years watching their household budgets dwindle as the cost of living has gone up. United States household debt accounted for 63.8 % of the country's Nominal GDP in Mar 2024

"Debt", everyone has debt in one form or another, be it a mortgage, credit cards, student loans, medical bills, and many other situations where money is owed in some form or fashion. The article posts some interesting figures which are adjusted for inflation. Is all debt bad? Or can it be positive? #financialadvisors #budget #bills #retirement #creditcards

Credit: a financial lever to be handled with care Got debt? You’re not alone. In fact, Canada currently holds the highest household debt level among G7 countries. But don’t worry—while debt is common, understanding how yours stacks up and knowing how to manage it can help relieve stress. Average Debt in Canada   As of 2020, the average Canadian owed $72,950 in non-mortgage debt. This includes:   - Credit card debt: $3,929   - Student loans: $20,165   - Car loans: $21,717   - Personal loans: $13,986  Credit card debt is especially concerning because of high interest rates, making it tough to pay off balances. Inflation and higher living costs are also driving more Canadians to rely on credit cards.  Debt levels vary across age groups too:   - Under 35: $69,500   - 35-44: $105,100   - 45-54: $130,000   - 55-64: $80,600   - 65+: $49,900  What Can You Do If Your Debt Is Too High?  1. Create a budget – A budget helps you track where your money is going. Include all debt payments and try to allocate any extra funds toward repaying debts. 2. Prioritize repayments – Tackle high-interest debts first, like credit cards. Consolidating debt into one lower-interest payment may help you manage it more easily.    3. Cut back on expenses – Free up money by reducing non-essential spending, like eating out, subscriptions, or entertainment. You can also try negotiating better rates on services.  4. Avoid taking on new debt – Focus on paying down your current debt before taking on any new loans or credit. This will keep your overall debt from growing.  5. Seek professional advice – If your debt feels unmanageable, consider reaching out to a financial advisor. They can help review your situation, create a plan to reduce debt, and guide you through important financial decisions. Debt can feel overwhelming, but it’s manageable with the right approach. Take it step by step, and don’t hesitate to seek help if needed. Your financial health is a journey, and everyone’s path is different!

Interesting Article. Credit card debt in the US is currently at $1.337T (with a "T"). Total Household debt is at $17.5T (2023, 4Q). Of that amount, housing debt is at $12.61T and non-housing debt is at $4.89T. Credit card balances increased by $50 billion to $1.13 trillion over the quarter, while mortgage balances rose by $112 billion to $12.25 trillion. Auto loan balances rose by $12 billion to $1.61 trillion, continuing an upward trajectory seen since 2011. Delinquency transition rates increased for all debt types except for student loans. https://lnkd.in/dAqyTTcF) https://lnkd.in/dix85Cxz

The world is $91 Trillion in Debt... Seriously! How are You Doing With Your Debts? Is it Time to Panic? Governments owe an unprecedented $91 trillion -- almost equal to the size of the entire global economy. The US government alone owes more than $34 trillion. With that amount of debt, some experts warn even rich countries could see their living standards slip. And since it's an election-heavy year, the problem may get worse as campaigning politicians write checks their countries can't cash Review: The world is sitting on a $91 trillion problem. ‘Hard choices’ are coming https://lnkd.in/gD2949_q AVERAGE AMERICAN DEBT As of May 29, 2024, the average debt in America is $104,215 across mortgages, auto loans, student loans, and credit cards. Debt peaks between ages 40 and 49 among consumers with excellent. The largest percentages of the average consumer debt balance are mortgages. Review: Average American Debt in 2024: Household Debt Statistics: https://lnkd.in/gi9_Jd2H TAKE CONTROL OF YOUR WEALTH If you're ready to take control of your financial future and unlock the secrets to building wealth, you've come to the right place! * We'll teach and mentor you on practical strategies on how to get wealthy, whether you're just starting out or looking to accelerate your earnings From creating multiple income streams to leveraging the power of the internet, we'll explore proven methods to make money online and achieve your financial freedom goals. * Forget get-rich-quick schemes; we're focused on long-term wealth building here. * Discover the importance of a conscious spending plan and how it can help you prioritize what truly matters while still enjoying the journey to riches. * Contact and Join us as we dive into the wisdom of financial experts whose insights have helped countless individuals transform their financial lives. * Whether you're a teen, in your 20s, or starting from scratch, we'll show you actionable steps to pave your way to becoming wealthy. * It's time to shift your mindset from just making money to building wealth. Contact and Join us in the MKS Master Key System Millionaire Program. Live Long and Prosperously, Reitenbach-Kissinger Institute Sydney and Michael Text: 650-515-7545 Email: mjkkissinger@yahoo.com Review: 1. MKS Master Key Coaching: mksmasterkeycoaching.com 2. We will teach you how to get RICH in 1 HOUR: https://lnkd.in/ge4g9sJb 3. 10 Reasons Why Many Educated People Are POOR!: https://lnkd.in/g9hKUh5s 4. The 7 Levels Of Wealth (What Stage Are You In?): https://lnkd.in/gTzsT7rM 5. 10 PROVEN STEPS to BUILD WEALTH from SCRATCH |Get RICH | Get out of POVERTY! https://lnkd.in/gufuYFZW 6. 12 Places Where Money Hides (MUST WATCH) https://lnkd.in/gwR7CWqb

Have you ever felt overwhelmed by debt? If you do, you're not alone. Recent statistics paint a concerning picture of financial stress faced by families in our country. As of 2023, household debt has reached a staggering RM1.53 trillion.😳 From the table put together by Copilot here, we see a significant portion of debts are attributed to housing loans, vehicle loans, and personal loans; while other loans include non-residential property purchases, credit card debt, etc. I guess it is no surprise that many of us lie awake at night, thinking about financial worries. Debt can feel like a heavy weight on our shoulders, but there's a way to lighten the load. 💡 One useful tool for evaluating your own financial health related to Debt is the Debt-to-Asset Ratio. This ratio, calculated as Total Debt divided by Total Assets, can help you understand your financial risk so that you manage your debt better. A lower ratio indicates healthier position. 📐 For example, if your total outstanding debt is RM 1 mil, and your total assets value is RM 2mil, your Debt-to-Asset Ratio will be RM 1mil / RM 2mil = 50%. 📉 A Debt-to-Asset Ratio of 50% or below is considered as a healthy. This means that the total debt is less than or equal to half of the total assets. However, it’s important to note that this is just a general rule of thumb, and the ideal ratio can vary depending on individual circumstances, financial goals, and risk tolerance. For instance, if you are are nearing retirement, you should have a much lower debt-to-asset ratio. 📊 By monitoring and managing this ratio, you can ensure that your debt levels remain within a manageable range and make informed decisions about taking on additional debt. Keeping an eye on your Debt-to-Asset Ratio can help ensure your debt remains manageable and empower you to make informed decisions about taking on more debt.💪 💬 It can be helpful to chat with a financial planner to understand what a healthy ratio looks like for your family or your unique circumstances. As I wrap this up I want to say that good financial health is not just about making more money or having more money; it's also about managing and understanding our debts. I will be hosting a webinar on “Manage My Debt, Boost My Credit Score” next week. I will put the registration link and event page in the comment section. How do you manage your debts? Share your tips in the comments below? #FinancialHealth #DebtManagement #CreditScore #FinancialFreedom

Credit Card Debt in Canada A recent report or survey from Equifax Canada shows younger Canadians are increasingly missing payments on credit cards and the delinquency rate among consumers under 35 has risen by more than 18 per cent as compared to last year. As of recent reports and survey by Equifax, Canadians carry an average credit card balance of around $2,000 to $4,000 or more. That might not sound like much, but when you consider high interest rates—often exceeding 19%—it can quickly become overwhelming. Below are some examples which leads to this debt? Several factors contribute: 1)Overspending: Many people use credit cards for everyday purchases, leading to impulse buying and spending beyond their means. 2)Emergencies: Unexpected expenses, like car repairs or medical bills, can force individuals to rely on credit. 3)Lack of Budgeting: Without a clear budget, it’s easy to lose track of spending and accumulate debt. 4)Low Financial Literacy: Many Canadians lack the knowledge to manage credit responsibly or understand the true cost of borrowing. Credit card debt can have significant consequences in one personal life: A)Financial Stress: Carrying debt can lead to anxiety and stress, impacting overall well-being. B)Credit Score: High balances relative to credit limits can lower credit scores, affecting future borrowing options or excessing the credit. C)Long-term Financial Goals: Paying off high-interest debt can delay savings for retirement or major life purchases like a home. Now, let’s talk solutions! Here are some effective strategies to manage and reduce credit card debt: 1)Create a Budget: Track your income and expenses to understand where your money is going. Prioritize paying off your debt. 2)Snowball Method: Focus on paying off the smallest debts first while making minimum payments on larger debts. This can boost motivation as you eliminate debts. 3)Negotiate Lower Interest Rates: Contact your credit card issuer and ask if they can lower your interest rate. You’d be surprised at how often this works! 4)Consider a Balance Transfer: If you have good credit, consider transferring your balance to a card with a lower interest rate or a promotional zero-interest offer. 5)Seek Professional Help: If your debt feels unmanageable, don’t hesitate to reach out to your financial advisor or credit counseling service. Credit card debt can feel daunting, but with the right strategies and a commitment to managing your finances, you can take control. Remember, it’s about making informed decisions and building healthy financial habits. Thanks for tuning in, and stay financially savvy! #SmartSpending #CreditCardSavvy #SwipeWise #CreditCardHacks #CreditCardGoals # Tips

“Americans collectively owe over $1 trillion in credit card debt. But one generation carries the most, on average: Gen X.” “The average credit card balance for Gen Xers, defined at those between the ages of 43 and 58, rose to $9,123 in the third quarter of 2023, according to Experian’s latest available data. That marks the highest average credit card balance of any generational cohort.” “On an individual level, the overall average balance is around $6,501, per Experian’s data. Other generations’ credit card debt falls closer to that average or below.” “Although Gen Xers hold the most credit card debt by generation, millennials’ average balances increased the most, jumping by a little over 15% in the last quarter of 2023, compared with the last quarter of 2022. Gen Zers aren’t too far behind with their balances increasing by around 14%.” “A couple of factors may be contributing to the rise in credit card balances among all generations. The higher costs of electricity, auto insurance and heating combined with rising credit card interest rates may mean people have less money to chip away at their debt, Experian reports.” - Cheyenne D.