On August 24, President Biden announced the cancellation of $10,000 in federal student loan debt for most borrowers. But student loan accounts for less than 10% of household debt in America, which reached $16.15 trillion during the second quarter of 2022. And debt is likely to grow even further due to soaring inflation. 43% of Americans are expected to add even more debt within the next six months. So why are so many Americans in debt today and what impact does it have on the U.S. economy?
Policy plays a vital role in keeping household debt in check. Experts say outdated procedures such as wage garnishment, in which an individual’s earnings are withheld for the payment of a debt, are in dire need of a policy update. A survey found that about 7% of workers in America had their wages garnished, according to the most recent study in 2016.
The government can also play a potential role in reducing certain kinds of borrowings, such as medical debt that is currently held by roughly 23 million Americans.
Watch the video to find out more about why household debt is rising in America.
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Why Americans Are Drowning In Debt
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Education. That is what I think is lacking amongst many. And people on top don’t do us all that much of a favor such as the guy here talking about taking on debt to finance an asset and then goes on to mention a car as one of them. No wonder. People will buy liabilities and think it’s an asset because someone up there who appears to know their stuff calls it one, and so everyone does too. There were others things too in this video that just kind of made me wonder.
Speak for yourself. I have no debt and got lots of money.
The lady with the Masters degree has a really nice kitchen, which may be partly due to debt.
Covid relief sent people home lowered debt with free money increase the fico score got more credit and now they dead. Expect major credit card companies to see missed payments and defaults at percents unheard of… they dead and market is gonna be dead on dead
Why did student loans go up? Bc the government offered that loan. If the fed only gave 10k max on student loans colleges wouldn’t be able to charge students that money it’s the mix
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What students loan? Biden said he would eliminate students debts…???
Prob because most essential needs like 💧 water/ healthcare/ housing & food is based on a profit only system, with little taxes or fair redistribution through life essentials in your country so the rich can get richer. 🇨🇦
You guys have pretty cheap houses 🏘 though & higher salaries we are suffering here upnorth $$$$ & it's pretty cold 🥶 good quality housing is a must.
Please tell us what happen to Carl Azuz? We have a lot of people who want to knw. Closure is a good thing
The two main factors were not even mentioned:1) U.S. Fiat Currency and 2) Self-Discipline. Since leaving the gold standard in the early 1970s, the U.S. has been on this track of increasing debt. In addition, we live in a culture saturated with entitlement. Everyone thinks they "deserve" everything. Don't spend more than you make…it really is that simple. I
Yes, well, life is not fair!!!
Because the federal govt is in debt
And giving away money like it grows on trees
SAD EXAMPLE BY YOUR 💩💩💩
Politicians
Uuhhhmmm…because everything costs 3x but wages are stuck in the 1990s?
Because billionaires always want more and it has to come from somewhere?
……Because Credit Cards….
The govt. keeps raising taxes so they can help OTHER NATIONS…. they forget about us.
“Prior” is an adjective.
I'll happily find a hard working girl with no college debt. I'm right here with a nice home, no debt, and family back up.
Before you major in social work and take on $250,000 in debt, perhaps research what your income will be. That’s beyond stupid…it’s irresponsible. 1 Google search…🙄.
Because of Bidenflation & Democratflation!!! SIX TRILLION wiped out by them.
Idiocracy
Biden, Obama, Clinton started the trillion dollar deals.
Because we are off to war
When people borrow, it’s on them. I live in a country where the vast majority of people don’t have cars because they accept that they can’t afford them.