If you are feeling especially weighed down by unmanageable debt recently, know that you are not alone. A recent report by the Federal Reserve revealed that household debt jumped by $601 billion last year. For the first time ever, this balance has topped $14 trillion.
The report also shows the three areas where debt increased the most for Americans: housing debt, credit card loans and car loans. Student loan debts also increased.
How bad are these findings?
The results of the report show that people are taking out more loans (or refinancing loans) to buy houses. They are taking on more credit card, automotive and student loan debt. Overall, the information suggests that younger consumers buying homes, cars, and going to school could be among those most affected by the increasing debt numbers.
And in fact, total debt for people between the ages of 18 and 29 increased to $1.04 trillion, which is a record.
More than just a number
Looking at debt from a national perspective can help people appreciate the fact that debt is not uncommon. And these days, it is only becoming a bigger problem for many people.
However, these numbers do not necessarily help individuals struggling under unmanageable debt. Statistics do not pay off student loans or help people find jobs, and so far, the growing debt has not spurred widespread legislative changes. In other words, while this information may be interesting, it does not change the debt you may be carrying.
Taking steps to tackle debt
To make changes to your financial situation, you can assess debt-relief options, which could include filing for bankruptcy protection. You do not have to be afraid or ashamed of your debt, but you should not ignore it, even if you are young and mistakenly believe debt is just something you’ll always have.
Debt can take a toll on people. It can be stressful and put a strain on personal relationships. It can create immediate and long-term financial obstacles. There may be a risk of losing a car, your home or part of your wages. To avoid this, you can contact the attorneys at Quinn Law Firm at 814-833-2222 to discuss your situation and examine the debt relief options available to you.