Consumers are borrowing again, making a big economic splash. Historically, spending stimulates the U.S. economy, but too much debt can harm overextended consumers. Have spending or investment questions to help manage your debt? Talk with an LPL financial advisor today.
Mortgage Debt – $8.36 trillion: Up 1.37% (+12B)
Good news: While borrowing peaked, balances fell for the lowest credit score borrowers – the core of the subprime mortgage crisis. Consider financing at lower rates.
Student Loan Debt – $1.26 trillion: Up 2.2% (+.027B)
Swelling debt for college grads can affect their ability to buy cars and homes later. Start making payments immediately and pay more than the minimum amount.
Auto Loan Debt – $1.103 trillion: Up 3.6% (+39B)
Spending on big-ticket items is rising, helping the economy do the same. Determine if you can make additional payments towards the principal amount.
Credit Card Debt – $729 billion: Down 0.5% ($4B)
Consumers are spending again, but more mindfully. Don’t keep adding debt; pay off higher interest rates first and consider consolidating.