US Household Debt

Household debt is $13.5 trillion.

US Mortgage Debt topped the list in 2018 at $9.1 trillion. This is good debt, because it turns into an asset to be added to your net worth.  The best home mortgage is the 15 year mortgage that enables homeowners to pay off their homes early. Single-Family homes pay for themselves, because their value appreciates more than the payments. It makes no sense to pay rent.

Auto loan debt - This is often unavoidable, even if you get a great deal on a used car, you will probably need to make car payments for 2 years.  Most consumers need to avoid buying a new car. Auto Loan Debt is $1.1 trillion.

Student loan debt - This is really bad debt for most people and needs to be avoided at all costs. Student Loan Debt is $1.5 trillion.

Credit Card Debt - This is the worst debt and is avoidable. All monthly credit card bills need to be paid off in full.  US Credit Card Debt is $420.22 billion.

Norb Leahy, Dunwoody GA Tea Party Leader