Bettering Debt - U.S. Debt Rates and Improvements over Time [Data Study]
American household debt has climbed steadily since the 2008 financial crisis, nearing pre-recession levels by 2018. Yet financial experts note that borrowing patterns now suggest greater economic confidence. More people are securing loans and credit, often for long-term investments like homes and education.
Debt levels reached a record high in late 2018, though the picture varied widely across states. In Michigan, for example, average personal debt grew just 14% from 2003 to 2018, with mortgage and credit card balances even dipping slightly. Meanwhile, states with lower living costs, such as West Virginia and Mississippi, consistently reported debt levels below the national average.
The shift reflects broader economic trends. After peaking in 2008, consumer debt dropped sharply but has since risen by nearly 50% over 15 years. By 2019, lenders were approving more applications, with credit card rejections falling to 15%—a notable drop from the previous year. Home loan rejections also declined, signalling easier mortgage access and a robust economy. Successful credit applications jumped by about 11% from 2018 to 2019, with the biggest increase among those aged 40 to 59. The ratio of debt to disposable income has improved since 2008, suggesting most borrowers are managing repayments relative to their earnings. Analysts highlight that debt, when used for education, housing, or small businesses, can support both personal and national economic growth.
The data reveals a more optimistic borrowing landscape, with lower rejection rates and debt levels aligned with income. While household debt has risen, the focus on investments like property and education points to measured financial planning. These trends indicate a stronger, more stable economic outlook for many Americans.
Read also:
- Executive from significant German automobile corporation advocates for a truthful assessment of transition toward electric vehicles
- United Kingdom Christians Voice Opposition to Assisted Dying Legislation
- Democrats are subtly dismantling the Affordable Care Act. Here's the breakdown
- Financial Aid Initiatives for Ukraine Through ERA Loans
