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Is US Household Debt Growing?

US Household Debt Increase

A large majority of Americans walk around with US household debt. The majority of these debts are made up of mortgages, auto loans and credit card debt. While the economy has not bounced back since the great recession in 2008, U.S. household debt grew during Q1, making it the fourth straight quarter of growth. This article in the Wall Street Journal points out that although there has been a rise in debt, this does not reflect an economy comeback. Read more about the Rise in Debt.

This article points out that the US household debt increase and average mortgage debt grew due to fewer homes going into foreclosure and not because people are on the economic upswing. One area of debt that did not see gains is credit card debt. It appears that many Americans are wary of utilizing their available credit. Credit card balances fell $24 billion from the prior quarter which is the lowest level since 2002. This may be due in part to the fact that many are playing it safe or that people may already have maxed out their available credit. If you are stuck in a minimum payment cycle and see no way out, it may be time to contact a debt settlement attorney. An experienced debt settlement attorney can negotiate for reductions in the amount that you owe without the need for bankruptcy.

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.