U.S. consumer debt has amounted to around $12.73 trillion payable to banks, credit card companies and car loans among other lenders as of May, according to the New York Federal Reserve.
Economists estimated the value of consumer debt for the month to be higher than the recorded number in the last financial crisis, although they say that the current economy is better now than it was 10 years ago.
Aside from mortgages, student loans account for the biggest share of household debt in the country.
In 2016, a survey revealed that Utah has the lowest average student debt nationwide. The state also has the least number of unemployed people between 25 and 34 years old.
If you’re looking for collateralize loans in Utah, there are many lenders providing attractive interest rates for title loans in Ogden, Salt Lake City and other cities. Applications for title loans are also easier compared to student loans.
That’s because loan defaults for student debt have increased at the same time that more Americans find themselves buried in educational loans. For instance, student loans comprised 5% of the total consumer debt among Americans in 2007 and after 10 years, these loans have now accounted for almost 11%.
Despite the higher risk of defaults among those applying for student loans, experts say that more people willing to borrow money signal their positive outlook for their financial future. However, the place of residence serves as a good determining factor for borrowers’ ability to pay back their financial obligations.
In Utah, approximately half of college students owe money after graduation, according to the Utah System of Higher Education. This can be attributed to the state’s economy, which is one of the top performers in the U.S.
Financial freedom not only requires you to be debt-free, but also involves a disciplined approach on how you handle your money and be prudent enough to know the best time to apply for a loan.