Observations on life

Today’s Family Debt – HumbleDollar

It’s hard to believe, or maybe not, but we never seem to learn our lessons about money. Pushing subprime mortgages to people who could not afford all the costs of a house, along with irresponsible home equity borrowing got us into the 2008 debacle and yet today you can get a mortgage with 5% down . . .

  • Every three months, the Federal Reserve Bank of New York puts out a report on household debt. Over the five years through September 2008, the amount of debt carried by U.S. families soared 68%, as we hurtled toward the financial crisis. Americans shed debt over the next five years, as they paid back the money they borrowed and also defaulted on loans. Since mid-2013, however, borrowing has picked up again. Result: As of 2018’s third quarter, Americans were carrying 6.6% more debt than in September 2008.

Source: Today’s Family Debt – HumbleDollar

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Categories: Observations on life

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2 replies »

  1. The real problem is wages have not kept up with inflation. This has caused many to use credit to make up the difference. 50% of workers make less than $30,000 per year. How are these workers going to send their kids to college, save for retirement or even have an emergency fund. they are not going to be able to do any of it. If you think they are, you are living in a dream world.

    “As of 2018’s third quarter, Americans were carrying 6.6% more debt than in September 2008.”

    Not at all bad, the government is carrying about 100% more debt than in 2008. That is what I worry about. I have cut my debt by 60% over the last 10 months and will be debt free in Nov 2019. Thanks to taking Social Security at age 62.

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