A recent NerdWallet analysis found that the average US household had debts of more than $165,000 throughout the country.
The national total debt now stands at $16.5 trillion, a rise of 7.65 percent from the previous year due to that amount of average family debt.
Cost of Living Rises
The monthly credit card balances have climbed over the past year and are currently over $460 billion, according to researchers.
According to the report, mortgages, auto loans, and overall debt, all grew over the past 12 months, despite a minor decline in student loan levels.
The typical US household owed $222,000 on its mortgage, $17,000 on credit cards, and $29,000 on auto loans as of last year.
According to NerdWallet researchers, the average US household has $58,000 in student debt, a decrease of 0.6 from the prior year.
Researchers examined how household debt has changed over the past year using information from the Federal Reserve Bank of New York and the US Bureau of Labor Statistics.
Additionally, NerdWallet polled more than 2,000 American adults about their attitudes toward debt and their financial futures. The study that was published on Tuesday used the poll’s results.
Because the cost of living is rising faster than income in the US, household debt has risen over the past year.
The study found that while the overall cost of living increased by 8% last year, the median household income increased by only 4%.
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Inflation Affects Family Debt
However, Pay-later services could result in deeper debt for millions of people. In the last 12 months, nearly 1 in 5 Americans, or 18%, claim to have utilized a buy-now-pay-later service.
Consumers are concerned about their money in the coming year. 69% of Americans are worried about their finances in the upcoming year. The top concern is having to incur more debt (31%), followed by having to pay higher interest rates (27%), to fund essentials.
To offset rising prices, consumers are using all reasonable measures. In reaction to inflation over the previous six months, nearly 4 in 5 Americans (79%) claim to have taken action. Of those, 42% report driving less and 39% report increasing their purchases of store brands and unprocessed basics. Nearly one in five Americans (19%) claim they have increased their debt as a result of inflation over the past six months.
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