Middle Class Death Spiral: Consumers Have Never Been In More Debt, And Bankruptcies Are Surging
According to the New York Post, the total amount of debt that U.S. households have accumulated is about to cross the 14 trillion dollar mark for the first time ever…
Meanwhile, record American household debt, near $14 trillion including mortgages and student loans, is some $1 trillion higher than during the Great Recession of 2008. Credit card debt of $1 trillion also exceeds the 2008 peak.
Americans are spending heavily, again — and often recklessly, say analysts.
This is the exact opposite of what U.S. consumers should be doing. We can see signs of a fresh economic slowdown all around us, and consumers should be feverishly trying to get out of debt as fast as they can.
But instead, debt levels just keep setting record after record. In fact, total student loan debt just hit a brand new record high of 1.605 trillion dollars, and auto loan debt just hit a brand new record high of 1.174 trillion dollars.