There are certain things in life that people will borrow for in order to pay for them, and the typical loans that people will take out include those for vehicles, homes and increasingly for their educations. Consumers in the United States have also long been borrowing from credit card companies, and these common forms of debt all combine to form one debt load for the average American household. The amount of debt attributed to each form of borrowing, however, has been changing.
This was confirmed by a recent study that was done by a team of economists at Wells Fargo, which looked at several different variables that relate to household debt in the United States. One of the most troubling findings was that student loan debt now makes up approximately 8.5 percent of total household debt across the country. This represents an enormous jump from 10 years ago, when that number stood at 3.3 percent. Experts expect this trend to continue in the coming years as more people finish their educations.
While this is clearly a troubling trend, there are many reasons for its existence. Not only are tuition costs rising and income dropping for recent graduates, but people have also been reducing their mortgage and credit card debts. Mortgage debt has dropped by more than 13 percent since the end of 2008 and credit card debt is down by 23 percent since that time.
San Diego Bankruptcy Lawyers
Unfortunately, many people are simply being crushed by student loan debt that cannot be effectively managed. To make matters worse, student loan debt cannot be discharged in bankruptcy absent relatively rare circumstances. However, there is almost always a way out for a consumer who is struggling to make ends meet every month.
If you are ready to plot a course to your own financial recovery, you need to seek the help of San Diego bankruptcy lawyers who have been helping consumers regain control of their lives for many years. Contact the Golden State Law Group today to schedule a free initial consultation.