The Average Amount of Debt

Debt seems to be a common fact of life in the United States.

Debt has been increasing in the United States, both personally and publicly. As of 2010, the U.S. national debt was more than $13 trillion, with an average per person of more than $43,000 in debt. Consumer debt is also rising at a high rate. From 2005 to 2010, the outstanding consumer debt in the United States increased by over $100 billion dollars to $2.4 trillion. Since the projected population of people over 18 years old in the United States is 233.6 million people that yields an average consumer debt of $10,360 for every adult in the nation.

National Debt

The national debt is the amount of money that the United states owes based on spending more money than is generated through taxes and other sources of income. The majority of the national debt is owed to the Federal Reserve bank which is semi-autonomous from the U.S. government. The next largest part of the debt is owed to foreign governments. The continued growth of the national debt is due to the federal government running a deficit on budgets for most years.

Consumer Debt

Consumer credit includes all private loans that are not secured by real estate. This includes student loans, auto loans, credit cards and all other types of credit offers. Since the end of World War II, consumer credit spending has increased steadily with very little slowing. The 2010 rate of $2.4 trillion is only slightly lower than previous years due to the global recession of 2008 and 2009.

Housing Debt

Mortgage debt outstanding is even higher than consumer debt. As of June 2010, the total outstanding mortgage debt was more than $13 trillion. That works out to over $60,000 in housing debt for every adult in the country.

Bankruptcy

Due to all of this debt, bankruptcy has been on the rise. In 2005 alone, there were an estimated two million bankruptcy filings, an increase of 11.5 percent annually (see Resources).

Totals

Totaling all of the debt outstanding for every adult in the United States yields a stunning result. With $43,000 of national debt, $10,360 of consumer debt and $60,000 of housing debt, the average debt for every adult in the United States is $113,360, as of 2010. With a median household income of just $50,000, that places a huge strain on the ability of people to pay their debts.

References

• Brillig: Debt Clock
• Federal Reserve Bank: Consumer Debt
• Census: Projected Population
• Brillig: FAQ
• Federal Reserve Bank: Historical Data

Resources

• Money-Zine: Consumer Debt
• Census: Income