American Families Are Deep In Debt

AMERICANS IN DEEP ACROSS AMERICA, CONSUMERS CARRY A HEFTY DEBT LOAD Washington $ 105,488 Colorado $ 115,694 Massachusetts $ 102,425 Nevada $ 113,869 - Maryland $ 111,585 California $ 136,002 Virginia $ 111,585 = More than $ 100,000 = $ 90,000 - $ 100,000 = $ 80,000 - S 90,000 = $ 70,000 - $ 80,000 = $ 60,000 - $ 70,000 Hawaii $ 106,583 =$ 50,000 - $ 60,000 I=$ 40,000 -$ 50,000 THE TYPICAL FAMILY AMERICAN FAMILY DEBT PICTURE Medical Bills and Other Debt Credit Cards and Personal Loans $ 5,000 $ 6,800 Student Loans $ 12,000 Vehicles and other Installment Loans $ 14,400 Home Equity Loans Mortgage $ 24,000 $ 109,000 THREE THINGS TO KNOW ABOUT CREDIT CARD DEBT 13 The average American household has 13 credit cards 75% of American Households are in debt The average credit card's rate is 14.26% How long does it take to pay off those credit cards ? The answer: NEVER. The median American family has carried at least $ 4,300 in credit card debt for more than 20 years $8K $6,800 $6,800 $6,500 $7 K $6 K $ 5,700 $ 5,400 $5,700 $5 K $ 4,300 $ 4 K $ 3 K $2 K $1 K $0 1989 1992 1995 1998 2001 2004 2007 2010 Median family credit card debt since 1989 Education is breaking the family budget ... While rising medical costs threaten families too $ 35 K 2009 $ 30K $25 K $20K 2000 $ 15K $ 10K 1995 $5K 1989 1980 1981 1985 1986 1990 1991 1995 1996 2000 2001 $ 100 $ 200 $ 300 $ 400 $ 500 2005 2010 2011 $0 Average tuition and fees for four year private and public college, 1980 Average cost of select medical goods and services, I Public four-year tuition and fees adjusted f tion, 1989-2010 Private four-year tuition and fees Mortgage debt shows that many Americans are living beyond their means THE MEDIAN AMERICAN HOMEOWNER WILL NOT PAY OFF THEIR HOME FOR AT LEAST 23 YEARS $4,500 OVER THE LAST DECADE, HOMEOWNERS PULLED AN AVERAGE OF $30,000 IN EQUITY $25,500 $30,000 BUT ONLY 15% OF THAT MONEY WAS USED FOR HOME IMPROVEMENTS. OUT OF THEIR HOMES, IN ADDITION TO THEIR PRIMARY MORTGAGE, THE MEDIAN AMERICAN HOMEOWNER ALSO OWES $26,000 ON THEIR HOMÉ EQUITY LINE OF CREDIT (HELOC) And let's not forget about the family car... The average new car loan is $27,959 63 MONTHS and won't be paid off for 63 MONTHS. BUY SELL The average new car will be worth LESS THAN HALF of the original purchase price by the time IT'S PAID OFF. For a typical family midsize sedan, the average American will spend MORE THAN $17,000 on fuel, taxes, and interest. MEANWHILE, CEO EARNINGS CONTINUE TO SKYROCKET 2010's average CEO Salary $ 8,050,000 2010's Median American Family Household Income $ 50,221 FACT FACT According to US Commerce Department data, real private-sector wages have grown just 4% between 2001 and 2011. That's less than the 5% that wages increased between 1929 and 1939. the decade bracketing the Great Depression The number of bankruptcies filed in 2010: 1,592,669 Source: Equifax data was used to compile US debt map. Debt pie chart data, credit card data, home and car debt information from US Federal Reserve data. Education cost data from Trends in College Pricing, 2010, Trends.CollegeBoard.com. Medical cost data from US Bureau of Labor Statistics. 2010 median family income data from US Census. CEO Compensation data from Forbes Historical CEO Compensation Report WINK & WINK, P.C. A Bankruptcy Law Firm www.winkandwink.com