Americans continue to spend money. That is no secret. And certainly not a surprise. According to a recent article by CNBC Money, our country’s consumer debt is on course to hit a record $4 trillion by the end of this year. That is a large chunk of change.
“Americans owe more than 26 percent of their annual income to this debt. That’s up from 22 percent in 2010. It’s also higher than debt levels during the mid-2000s when credit availability soared.”
These debts are not concentrated to one industry or the other. In fact, quite the opposite, according to the article.
“Debts on auto loans and credit cards are climbing by more than 7 percent annually, while housing debt is rising at a little more than 2 percent.
Consumer credit has been rising by 5 percent to 6 percent for about two years.”
The article goes on to explain what this record high might mean to your own pocketbook, and how to handle the rising rates.
To read the full article, visit the CNBC Money site here.