Need Help?

Debt Statistics in America

 

Debt in America

  • Average personal debt in the U.S. in 2018 is up to $38,000 excluding mortgages. (Northwestern Mutual)
  • The wages of 4 million American workers are being garnished to pay delinquent consumer debts. (NPR)
  • 77 million Americans have debts in collection accounts. (Washington Post)
  • 48% of women earning around $100,000 fear that they are going to lose everything and end up as bag ladies. (The Female Affect)
  • 60% of women report that their greatest financial priority is “just getting by” or paying off debt. (Trans American Center)
  • The percentage of people carrying $5000 – $25,000 in debt (33%) is almost double the percentage of people who have accumulated the same amount in personal savings (17%). (Northwestern Mutual)
  • 20% of Americans allocate 50% to 100% of their monthly income to debt repayment. 13% of Americans expect to be in debt for the rest of their lives. (Northwestern Mutual)
  • Some analysts estimate that 80% of court-ordered money judgments in America are never collected. (Forbes)
  • For most portfolios, debt buyers did not receive any documents at the time of purchase. (FTC)
  • 40% of American adults would have to sell possessions or borrow money to cover a $400 emergency expense. (Federal Reserve)
Chapter 13 is a pretend solution. I use this term to mean a social program that does not work as intended but is not critiqued or reformed because its flaws are hidden.
Karen M. Porter, UC Irvine School of Law

Mortgage Debt

  • 10 million American families owed more on their mortgages than their homes were worth in 2014. (Zillow)
  • Of the $11.74 trillion in total U.S. consumer debt outstanding in December 2014, $8.14 trillion (almost 70%) was mortgage debt. (Nerd Wallet)
  • An investigation of mortgage documents in one Massachusetts county revealed more than 25,000 suspect signatures. (Associated Press)
  • In one North Carolina county, 74 percent of signatures inspected on mortgage documents were questionable. (Associated Press)
  • In one Illinois county, a random sample of 60 documents revealed that all 60 – 100 percent – carried robo-signed signatures. (Associated Press)
  • In late 2014, New York regulators announced that Ocwen Financial had backdated letters to potentially hundreds of thousands of troubled mortgagees. (Wall Street Journal)
  • About 30 percent of black and Hispanic borrowers’ homes in total have gone into foreclosure in the years since the housing market crash, compared with 11 percent of whites’ homes. (Center for Retirement Research)
  • Big banks routinely steered borrowers—disproportionately minorities—who qualified for conventional loans to immensely more profitable subprime mortgages, which carried terms that set up borrowers to fail. (The Consumerist)

Student Debt

  • In 2015 60% of the 38 million Americans with student debt (22 million in total) were not making payments. (Zero Hedge)
  • In 2013 nearly 50% of recent private school graduates were delinquent on their loans. (St. Louis Fed)
  • Although the national student loan default rate in 2018 is 10.8%, African American borrowers, students who are parents, and low-income students have higher-than-average default rates, in some cases topping 50%. (Center for American Progress)
  • Between 2005 to 2012, average student loan debt rose by 35%, adjusting for inflation, while the median salary dropped by 2.2%. (Credit.com)
  • The cost of college is rising 8x faster than wages. (Forbes)
  • In the class of 2017, the average graduate carried a student loan debt of $40,000. (Forbes)

Credit Card Debt

  • In 2013 53% of the 105 million Americans with credit cards (55 million in total) could only make the minimum payments. (Federal Reserve)
  • In 2014 more than 93% of credit card lawsuits went unchallenged by debtors. (Huffington Post)
I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt.
Noach Dear, State Civil Court Judge, Brooklyn, NY
x
x

Get ready to start your debt-free life

  • Monthly
  • Annual

Personal Plan

$29.99/ mo
Join Today
  • 30-minute monthly strategy session with an attorney
  • 10-page document review by attorney every month
  • 25% discount on legal fees
  • Tools to gain leverage over creditors
  • Access to digital DebtCleanse book
  • Dispute letter generator with 24 sample templates
  • All platform resources
  • Access to support team experts
  • Group roundtable calls

Small Business Plan

$49.99/ mo
Join Today
  • 30-minute monthly strategy session with an attorney
  • 10-page document review by attorney every month
  • 25% discount on legal fees
  • Tools to gain leverage over creditors
  • Access to digital DebtCleanse book
  • Dispute letter generator with 24 sample templates
  • All platform resources
  • Access to support team experts
  • Group roundtable calls

Personal Plan

$299/ Year
Join Today
  • 30-minute monthly strategy session with an attorney
  • 10-page document review by attorney every month
  • 25% discount on legal fees
  • Tools to gain leverage over creditors
  • Access to digital DebtCleanse book
  • Dispute letter generator with 24 sample templates
  • All platform resources
  • Access to support team experts
  • Group roundtable calls

Small Business Plan

$499/ Year
Join Today
  • 30-minute monthly strategy session with an attorney
  • 10-page document review by attorney every month
  • 25% discount on legal fees
  • Tools to gain leverage over creditors
  • Access to digital DebtCleanse book
  • Dispute letter generator with 24 sample templates
  • All platform resources
  • Access to support team experts
  • Group roundtable calls

Don’t have the budget but still want to join DebtCleanse? (57)

You can sign up for a free account! The free account includes access to the Q&A forum and our debt tracker. And it’s easy to upgrade whenever you are ready for more support. (173) Sign up for a free account
sections/newsletter