Business
NerdWallet: U.S. Households Owe More Than $15 Trillion in Debt
New study finds revolving credit card balances are declining, while mortgage and student loans debt is on the rise. SAN FRANCISCO, Jan. 11, 2022 /PRNewswire/
About this update from Nerdwallet, Inc.
[{"type":"text","content":"New study finds revolving credit card balances are declining, while mortgage and student loans debt is on the rise.\n\n\nSAN FRANCISCO, Jan. 11, 2022 /PRNewswire/ -- NerdWallet, Inc. (Nasdaq: NRDS), a website and app that provides consumers and small businesses with trustworthy financial guidance, found that household debt is on the rise, with the average indebted U.S. household owing $155,622. According to NerdWallet's annual American Household Credit Card Debt Study, American households hold $15.24 trillion in debt nationwide, an increase of 6.2% from the amount of household debt owed a year earlier.\n\n \n \n \n \n \n \n\n \nThe study, which includes a survey conducted online by The Harris Poll on behalf of NerdWallet of more than 2,000 Americans aged 18 and older, found that Americans who have been financially struggling over the past year point to both lower income and higher expenses as reasons why. More than a third of Americans (35%) say their household financial situation has gotten worse over the past 12 months. Of that group, 38% say it's because their household income decreased overall, and 36% say it's because their household expenses increased overall.\nPandemic relief programs, including stimulus payments and the expanded child tax credit, have also helped Americans withstand financial hardships, according to the survey. More than three-quarters of Americans (78%) have received some form of pandemic relief since March 2020, with paying for necessities (43%) and adding it to their savings (43%) being the top uses they say they found for this money. Additionally, some Americans used credit cards as a lifeline during the pandemic – 18% of Americans say they relied on credit cards to pay for necessities during this time, and 17% relied on them for emergencies.\n\"As the pandemic continues, many consumers are still facing financial hardships – and rising costs for life essentials like groceries, gas, and medical needs can be an additional hurdle,\" said Sara Rathner, a credit cards writer at NerdWallet. \"Leaning on a credit card to make ends meet can be costly, but during a difficult time, it can be a necessary fallback. Consumers whose finances have improved this year may be setting lofty money goals, but it's equally admirable to focus on the basics, like adjusting your budget or rebuilding an emergency fund.\"\nThe...