Household Debt in the US Heavy with Student Loans
While some debt may be considered normal, finances may escalate out of control for consumers who find themselves under extreme stress in the case of an illness, accident, loss of a job, divorce, or a student loan that is so burdensome they cannot make ends meet without becoming delinquent. Even without added personal strain, far too many consumers are living paycheck to paycheck, teetering on the edge every month when it comes to the bills and the budget.
Student Loans Rank Second in Household Debt
Recent numbers show that the average household is in $135,768 of debt, and while a large portion of that may be mortgage, vehicles, and credit card bills, the student loan ranks second in totals owed. The average family in the US is beholden to $47,671 in student loans, with many struggling to get by. Some households and individuals may even be thrown into filing for bankruptcy, only to find it difficult to see student loan debts discharged. Lending doesn’t seem to show any signs of slowing, while defaults on student loans are projected to keep speeding up, with the potential for sending the economy seriously off track too as industries such as construction and auto become more and more constricted.
Younger Borrowers May Be Paying Over $350 Per Month
The constant stress plaguing student loan borrowers is a sad truth for many Americans today. The term ‘crisis’ has become associated with student loans, and most of us can attest to this as we either have student loans outstanding or know someone else who is struggling under their weight. For younger borrowers, with many in the 20- to 30-year-old range, monthly payments average over $350. The strain of being so far into debt so early may hinder them from success on numerous fronts; for instance, although they took out loans to gain an education so they could thrive in their field of choice, they may be too financially burdened to hang out their own shingles. Many younger borrowers are forced to put off choices like getting married and planning families, buying homes, and taking on payments for newer vehicles.
If you are worried about ongoing delinquencies or default, you should do everything possible to fix the situation, especially if you have a private student loan where a default could result in collections lawsuits or even default judgments.
Contact Us for Help
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at firstname.lastname@example.org.
Posted in: Student Loan Debt