Value of household debt in the U.S. 2020, by type
Consumers in the United States had 14.3 trillion dollars in debt in June 2020, the majority of which was home mortgages, at 9.78 trillion U.S. dollars. Student loan debt was the second largest component, totaling 1.54 trillion U.S. dollars.
Why is consumer debt important? Debt influences the Consumer Sentiment Index, which is an important indicator assessing the state of the U.S. economy. The housing market is also seen a bellwether of the economic conditions in the country. The housing industry employs a large number of people, and mortgages are large investments that consumers will pay off over the course of years, sometimes decades. Because of this, financial analysts closely watch consumer debt and its effects on the home purchase outlook.
Attitudes towards debt Consumer perception of debt differs, depending on the kind of debt in question. While most see a home mortgage as a positive investment, they increasingly look at student loan debt as a negative debt. With education costs increasing, people in the United States are incurring more student loan debt. Credit card debt also has negative connotations.
Why is consumer debt important? Debt influences the Consumer Sentiment Index, which is an important indicator assessing the state of the U.S. economy. The housing market is also seen a bellwether of the economic conditions in the country. The housing industry employs a large number of people, and mortgages are large investments that consumers will pay off over the course of years, sometimes decades. Because of this, financial analysts closely watch consumer debt and its effects on the home purchase outlook.
Attitudes towards debt Consumer perception of debt differs, depending on the kind of debt in question. While most see a home mortgage as a positive investment, they increasingly look at student loan debt as a negative debt. With education costs increasing, people in the United States are incurring more student loan debt. Credit card debt also has negative connotations.
