A TV ad recently stated that 70% of Americans are in Debt in addition to their Mortgages. The ad stated that the average debt is $61,000. This is unbelievable! I get nervous when my Visa statement rises to over $1000, which I pay quickly. Harold
I have no debt. For one thing I don't need anything so except for food I don't shop. I have many gift cards from my bday and Mother's Day that I haven't touched.
We carry a little bit of credit card debt but not much. We don't have a mortgage and, while we're still paying on my wife's car, I think it's nearly paid for. Of course, that's the time that she starts wanting another, while I am still driving my 2002 Tracker.
I haven't had a car payment since 1964, after paying off my new 1963 Chevrolet Impala, which I bought in 1962 after my Army discharge. I wanted to establish credit after returning to Civilian life, so I bought a new car on a 24 month contract, which I paid off early. I think the selling price was $2388. Since then all my automobiles have been purchased for cash, including a few new ones. I have owned 27 autos since 1952. Harry
Most of that debt is for things they don't really need. If they owe $61,000, most of what they pay each month goes to interest. Kinda like the federal government.
Home value, job title, car model, savings account balance. These things merely hint at how wealthy you or your neighbors are. The naked financial truth comes down to just one number: net worth. Net worth is the total of what you own minus what you owe. It’s a mathematical reckoning of assets accumulated (including cars, homes, Roth IRAs and that dish of loose change on the dresser) and debts accrued (such as mortgages, auto loans, student loan debt and credit card IOUs). And the average net worth is … A household in the U.S. has an average net worth of $692,100, according to the most recent data from the Federal Reserve’s Survey of Consumer Finances. Shocked by that figure? That’s because the average (aka the “mean”) is skewed by the nation’s super wealthy. The median net worth of the average U.S. household is $97,300. Median is the middle point where half the households have more and half have less. That means the median figure may be a better indicator of where you stand relative to your friends and neighbors. But the overall figures are just one indicator. There are many other ways to slice net worth figures published in the 2016 survey. Let’s start with age: Median and average net worth by age Under 35: Median net worth: $11,100 (average net worth: $76,200). 35-44: $59,800 ($288,700). 45-54: $124,200 ($727,500). 55-64: $187,300 ($1,167,400). 65-74: $224,100 ($1,066,000). 75+: $264,800 ($1,067,000). The Fed conducts the survey every three years. Looking at how families fared from early 2013 to early 2016 based on the educational attainment of the head of household, Americans without a college degree experienced the largest gains in median net worth (up anywhere from 24% to 29%). During that same period, the median net worth of families headed by someone with a college degree increased just 2%.
It's not how much you earn; it's how much you are able to keep. The end result is up to individual choices.
I thought this was interesting. Owing big bucks in student loans is probably the reason along with getting a degree in a useless field.
Nearly 40 percent of Americans would struggle to cover a 400.00 emergency expense. Nearly 80 percent say they are living paycheck to paycheck. The average American now has about $38,000 in personal debt, excluding home mortgages. A national average net worth doesn't mean much if people can't replace a set of tires or something that breaks in their home because they have nothing saved, not even for emergencies.
No Emma, net worth doesn't mean much to those struggling to get by, but it may be a wake-up call to make people realize they need to do better at saving.
I feel very fortunate that I'm in debt to no-one.... I have CC's of course, but I'm lucky that I can pay the balance before they accrue any interest..I don't owe anyone a penny, thank God..!! Everything I have, I worked hard and saved hard for...like everyone there was very hard times when I was younger, and there were times when I never thought I'd see the light at the end of the tunnel particularly after a divorce and raising my child alone , but I was fortunate to be able to work hard and pay my way and save everything I could
@Sheldon Scott The median net worth of the average U.S. household... It may be an interesting figure to some, but facts and details regarding the dire situation they're in should encourage people to put a small amount away each pay period. It's nearly always possible. Regardless of how small, it adds up over time.