Debt Relief In America
Consumer debt runs rampant in America, and though it does provide necessary fuel to the American economy, it also leads many individuals down the road toward financial difficulty. Debt is one of the leading contributors to divorce in America and forces many Americans to live from paycheck to paycheck.
Sometimes a consumer falls prey to overspending and gets blindsided by an exogenous event – such as a job loss or medical emergency. There are many ways that excessive consumer debt can lead to financial hardship that often lasts years and alters life trajectories. But, debt does not have to define your financial livelihood. There are numerous forms of debt relief in America that are suitable for different debt circumstances.
Two Primary Categories of Debt
There are two primary categories into which debt can be divided – unsecured debt and secured debt. With unsecured debt, the amount borrowed is not backed by collateral that can potentially be seized in the event of non-payment by the debtor. The most common forms of unsecured debt are credit card debt, medical bills, student loans and personal/installment loans.
In contrast, secured debt is backed by collateral that can be seized and sold by the creditor in the event of non-payment by the borrower. The most common forms of secured debt are home mortgages, home equity loans, and auto loans. Because secured debt is backed by collateral, creditors will often loan larger amounts at lower interest rates and more favorable terms than are offered in situations involving unsecured debt.
National Household Debt Statistics at Year-end 2017
Economists and statisticians compile data related to the various forms of unsecured and secured debt on a national (and statewide) basis to generate an overall sense of the economy and economic well-being of the American consumer. According to the Federal Reserve Bank of New York, at the end of 2017, total household debt in the United States had increased $193 billion sequentially, an increase of 1.5%, to a record $13.15 trillion. Source
This marked the 14th consecutive quarter of sequential increases while placing aggregate household debt 17.9% above the recent low set in Q2 2013. The record level was led by substantial growth in mortgage balances, the largest component of household debt, which now stand at $8.88 trillion, an increase of $139 billion from Q3 2017. Meantime, credit card debt increased by $26 billion, a 3.2% sequential increase, to $834 billion. Auto loans grew by $8 billion and now total $1.22 trillion nationwide, with 4.1% of auto loan balances delinquent at year-end. Finally, aggregate student loan debt now stands at $1.38 trillion, with 11% of that figure showing as delinquent or in default.
Debt Relief In America By States
Are you in debt? we can help
Time and again, I did not know how to handle my debt
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Business debt relief is what I needed when I contacted the United Settlement crew
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Student loan debt was the reason that I reached out to United Settlement
Student loan debt was the reason that I reached out to United Settlement. I had about 200K plus in student loan debt for my business degree. I recognized that I had to do something when I struggled to make...
There is nothing worse than falling ill and then having to deal with super expensive medical bills
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I took out a few personal credit cards to open my boutique
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Who knew that auto loans were so negative for your credit lines
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I didn’t have a ton of debt when I contacted United Settlement
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Federal student loans were the reason I ended up at United Settlement
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Everyone knows how horrible student loans are
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I wanted to be more informed about my own personal and business debt
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I cannot believe I was finally able to find a company to actually help me pay off my debt
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What your money can do for you.
The great reviews that you have thanks.
Dealing with high interest auto loan debt was difficult for me and my wife
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No one really wants to go bankrupt, and neither did my family
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I had been through about 5 different credit counseling agencies before I found United Settlement
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Save time and money
Just what I needed, already had a company I was working with and I switched because I was able to same some money. Brian and Alfred were really nice and helpful
As a business facing some unwanted financial difficulties
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I had no clue how to create a debt management plan
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Being burdened by debt is one of the biggest struggles we faced as a family
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Student loan debt was my worst enemy before I ran into United Settlement
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Household Debt - The Top Ten States
Please note that the following figures are for ALL households in a given state or region. (For example – Mortgage debt averages include those households with zero mortgage debt, as well) The national average for household debt is $48,800, of which mortgage debt represents $32,940. All figures are culled from quarterly data compiled by the New York Federal Reserve.
1) Though technically not a state, Washington D.C. tops the list with average household debt of $84,380, driven by nationwide leading mortgage debt for all households (including non-mortgage borrowers) of $62,080. These figures are 73% and 88% above the national averages, respectively.
2) Hawaii checks in at #2, with household debt of $71,170, of which 54,680 is mortgage debt. These figures are 46% and 66% above the national averages, respectively. With an average FICO score of 691, Hawaii is the runner-up in that category on this list.
3) California comes next, just below Hawaii, with household debt of $70,100, of which $54,640 is mortgage debt. These figures are 44% and 66% above the national averages, respectively.
4) Checking in next is Maryland, with household debt of $70,010, of which $50,900 is mortgage debt. Maryland also has a higher than average household credit card debt level of $3,780, 22% higher than the nationwide individual state figure of $3,100.
5) Colorado comes next at $68,450, with above-average levels of mortgage debt and credit card debt, at $50,900 and $3,530, respectively.
6) Next comes Virginia, at $65,050, who also show above-average levels of mortgage debt and credit card debt, at $47,370 and $3,760, respectively.
7) Massachusetts places seventh, at $63,070, of which $45,760 is mortgage debt. These figures are 29% and 39% above the national averages, respectively. With an average FICO score of 694, Massachusetts takes top honors in that category on this list.
8) Washington State places eighth, at $62,560, of which $47,110 is mortgage debt. These figures are 28% and 43% above the national averages, respectively.
9) Connecticut places ninth, at $58,860, of which $41,790 is mortgage debt, the second lowest figure on this list. These figures are 21% and 27% above the national averages, while the state’s average household credit card debt of $3,730 is 20% above the national average of $3,100.
10) Alaska completes the Top Ten, with average household debt of $57,850, of which $41,580 represents mortgage debt. These figures are 19% and 26% above the national averages, respectively.
Household Debt Problem? United Settlement Can Help!
At United Settlement, we can help you get your household debt under control. In an initial 30-45 minute phone interview session, one of our experienced debt counselors will ask questions relative to your income, expenses and debts, and discuss solutions specific to your household debt situation. Among the more common solutions available is the Debt Management Plan (DMP), which involves streamlining multiple credit card payments into one simple monthly payment.
Included in the advantages of enrolling in a DMP are lower interest rates and a lower overall monthly payment. However, if you’re already delinquent on some credit card accounts, Debt Settlement may be the better option for you, as it can result in creditors accepting lower balance payoffs. Or, if you have a variety of different creditors beyond unsecured credit card debt, a Debt Consolidation Loan can pay off many of your creditors while also resulting in a lower blended monthly interest rate and payment.
Contact us here at United Settlement 888-574-5454 to discuss these available options and get going toward alleviating your household debt problem.