10 May What Was The Average Household Debt in 2020?
Here at MPowering America, we specialize in helping you get yourself out of debt and on the road to financial freedom. Studying the trends in American debt in 2020 could help you avoid falling into some of the same pitfalls in 2021.
After a year of personal, medical, and financial turmoil for much of America, it’s no surprise that household debt and income loss increased significantly in 2020. But just how bad was the average household debt in 2020, and what can Americans do to get out of debt?
2020 Household Debt Overview
Almost all types of debt saw an increase in the year 2020. Mortgages had the highest rate of increase, showing a 5.05% percentage change in amount owed from 2019 to 2020. Student loan debt per household increased by 3.45% from 2019 to 2020, while auto loans saw an increase of 2.93%.
Key Findings on Household Debt in 2020
When the pandemic hit, it turned everything upside down. Many Americans lost their jobs, and watched their financial situation continue to grow worse since the pandemic began. As a result of strained income, many households have struggled to make ends meet. They’ve had to rely on their savings, borrow from friends and family, or take on even more debt just in order to stay afloat in the midst of the pandemic.
Surprisingly, around 14% of Americans reported that their household financial situation has improved since the pandemic began. However, 42% of households say their financial situation has worsened. These responses can point to the wide variance between increased expenses and decreased income, and vice versa.
Debt Relief with MPowering America
If your debt is too much to manage and no debt reduction strategies seem to be working for you, it may be time to reach out to professionals to discuss your options. Our team of financial professionals at MPowering America are here to help if you are overwhelmed with debt. Contact us today to get started on your way to a debt-free life!