Before You Consolidate Your Debt, Read the Fine Print
May, 10th 2017
Americans are notorious for consumption. Consumer expenditures account for about 70% of US GDP – or gross domestic product, the sum of consumer expenditures, government spending, capital investment, and net exports. Unfortunately, Americans are equally notorious for kicking the can down the road.
According to the 2016 American Household Credit Card Debt Study by NerdWallet, the average household with credit card debt has a balance totaling more than $16,000 and pays nearly $1,300 annually in interest. Even excluding mortgage debt, which accounts for two-thirds of all consumer debt, Americans have a total outstanding balance of $4.1 trillion between credit card, auto, and student loan debt, equivalent to an average balance of more than $95,000 per indebted household, sans mortgage debt.