Debt is the mother of all sins when it comes to what not to have much in times of crisis. Today in America, statistics show that the economy is going well and that unemployment rate has reached a record low unprecedented since the 1970s. In addition to Americans according to whom the US economy isn’t as healthy as the figures say it is, the growing debt of households and students could someday be threatening the recovery made since the 2008 global financial crisis.
Total household debt climbed to USD 12.58 trillion at the end of 2016, an increase of USD 266 billion from Q3 2016, according to a report from the Federal Reserve Bank of New York. Up USD 460 billion in 2016, the Americans’ debt has been growing the most quickly in ten years as total household debt is now approaching the 2008 levels when it reached a record high just USD 10 billion higher at USD 12.68 trillion.
Although student, auto and credit loans made the bulk of this trend, most analysts said they’re not concerned given that delinquent debts counted for just 4.8% in 2016 against 8.5% in 2008. However, stay always wary of a potential “big short.”