Statistics on American Debt

While there is nothing trivial about debt and finances, most consumers are not aware of just how pervasive credit has become in our lives. The government is not the only one with a long term debt problem. Americans in general borrow young, borrow often and pay big money for their credit. When you look at the statistics, it becomes clear that debt is engrained in society's way of thinking.

Here are just a few facts that build the image of debt-glutted American consumers.

Credit decisions begin in high school &mash; Even if the students are using their parents as collateral, high school students buy their own cars, pay for their own insurance and college bound high schoolers take their first step on the student loan merry-go-round by filling out financial aid forms
Interest rates on department store credit cards can be as high as 33%. Yet these are often the threshold credit cards for first time card applicants.
More than half of Americans, 170 million, have now or in the past had a credit card.
Typically more than 80% of college students have credit and carry a balance in excess of $3,000. Half of all college grads have at least four credit cards with a total balance in excess of $8,000
The average auto loan is more than $30,000. Most auto loans last at least six years, double the term of the typical auto loan of 25 years ago. Auto loans, on the average, have interest rates from 7% to 9%. About 45% of new auto loans are now longer than 6 years, with the average amount reaching a 40% rise this decade. And longer loan terms mean many are paying balances that far exceed the value of the car. One finance exec says this recent American habit "is like a drug. Once you get hooked, it gets harder and harder to break the cycle."
The average mortgage is for $240,000. After 30 years of payments, it will cost more than double — $580,000.
More than half of college students graduate with debt. Those that earn a Technical School or community college degree can average more than $5000 a year. Graduates with a bachelors degree can average nearly $15,000 a year while those who went to private universities likely borrowed nearly $17,000 a year. Graduate school loans average more than $26,000 a year for a public university and more than $29,000 a year for a private university. A Doctorate degree can top off at over $40,000. Professional degrees like medicine and law can add up to more than $60,000 to $70,000 a year in loans.
Over a lifetime average Americans will likely pay more than $500,000 in interest

And don't be under the illusion that we have mended our ways. The Federal Reserve's latest G.19 report on consumer credit showed that revolving debt levels — mostly made up of credit card balances — increased by about $2 billion in March 2011 to $796.1 billion.