Consumer debt is set to reach $4 trillion by the end of 2018

Americans are in a lending environment and their total consumer debt can reach recordable $ 4 trillion by the end of 2018.

It is based on a loan comparison website analyzing federal data on unsecured debt including LendingTree, credit cards, cars, individuals and student loans.

Americans owe this debt over 26% of their annual income. This is an increase from 22% in 2010. It is higher than the debt level when credit availability suddenly increased in the mid 2000's.

Mortgage growth is slightly above 2%, but car loans and credit card debts have increased by more than 7% per year

According to Tendayi Kapfidze, Chief Economist at LendingTree, this growth is not surprising, consistent with the growth in consumer debt since 2012.

According to Kapfidze, at these levels, consumers spend about 10% of their monthly income on paying these debts. He said that between 2000 and 2008, the average is about 12% to 13%.

"It is not necessarily a dangerous area" to pay 10% of monthly unsecured loans, you need to consider how these debts are distributed, Roger Ma, Certified Financial Planner and lifelaidout The founder says

Horse Yun said that high interest credit card debt keeping rising monthly is concerned, said low interest debt of car loans and student loans may not cause the same concern.

The Fed is planning to raise interest rates several times this year, which inevitably will make consumer debt burdens more expensive.

This means shifting credit card debt to 16% per annum to provide a personal loan of 6% to 8%. This may also mean refinancing your student loan at a fixed rate to prevent these interest rate increases.

According to Ma Yun, whatever the debt level of the individual is, it is necessary to be clear about the amount of money to enter and go out.

If you find that your expenditure is more than you want, reduce unnecessary subscriptions, reduce banking fees, and reduce your shopping

If your credit card debt increases, please switch to use only debit cards. From there, you can cut your debt by first attacking the balance with the highest interest rate. If you have a small balance, you might want to knock them out first.

"By paying this fee as soon as possible, we can reduce the number of obligations to people and win in a short time," says Mr. Ma.

According to the Federal Reserve, student debt has more than tripled since 2004 and reached $ 1.52 trillion in the first quarter of 2018. This is second to mortgage debt in the US. The university's expenses have exceeded four times the consumer price index since 1985 Today's tuition aid is often difficult in schools that do not have particularly large contributions. "Who should bear the burden of educational expenses, this has changed a lot," says Benjamin Keys, a real estate expert at Wharton, his family finance and debt profession. "We know the story of our parents who can get enough work to pay for the tuition fee term in the summer.

In August 2017, consumer debt amounted to the highest level of 12.8 trillion dollars since 2008 from 12.7 trillion dollars. This is mainly due to the surge in student loans and car loans since the fourth quarter of 2009, as well as the highest level of credit card debt. Card default rate is rising

As of July 31, 2018, citizens possess $ 15.6 trillion in debt and $ 5.7 trillion intergovernment debt, accounting for a total of $ 21 trillion. As of October 28, 2018, public bonds were $ 15.8 trillion and intergovernment ownership was $ 5.8 trillion, totaling $ 21.6 trillion. The public offering obligation accounted for approximately 77% of GDP in 2017, and ranked number 43 in 207 countries. The US Congressional Budget Bureau predicts that this ratio will rise to almost 100% by 2028 in April 2018 and may become even higher if the current policy goes beyond the scheduled expiration date.