In this in-depth look at American household debt in 2022, the Resolvly LLC team analyzed Q1 data to identify important debt trends. Below, we examine recent debt trends, discuss which Americans are experiencing the most severe impacts, and explore ways debtors can seek lasting relief.
2022 American Household Debt Trends
During the first quarter of 2022, total household debt increased by approximately $266 billion, according to the Federal Reserve Bank of New York. This figure represents an increase of 1.7%.
As of the end of Q1 of 2022, the total American household debt was approximately $15.84 trillion.
Since 2019, American household debt has increased by a staggering $1.7 trillion.
The majority of this debt consisted of new mortgages. Specifically, American households took on $250 billion in mortgages in the first quarter of 2022. Mortgages are a form of “secured debt” because they are backed or “secured” by a piece of physical property (i.e., a house). Auto loans are another example of secured debt.
Typically, increases in secured debt are less concerning than rises in unsecured debt. The latter term refers to debts such as credit card bills, student loans, and personal loans.
Credit card balances dropped by approximately $15 billion in Q1 of 2022. However, the total credit card debt is roughly 9% higher than in Q1 of 2021.
Perhaps more concerning is that student loan debt soared by about $14 billion during the first three months of 2022. This represents an increase of 6.5%.
To recap, American households are taking on historic debt amid rising mortgage rates and historical inflation. The latter is of particular concern, as rising prices can leave many middle and lower-class families without the financial flexibility to repay their debts.
Who Is Being Impacted Most Severely?
While most American households are negatively impacted by inflation and other debt trends, some evidence suggests that single parents are bearing the brunt of these recent economic challenges.
According to CNN, many single-parent households are forced to take on more unsecured debts to cover basic expenses like food and fuel.
Generally speaking, single-parent households have less leeway between their income and expenses. As a result, these households have to turn to credit cards when they encounter unexpected expenses such as doctor’s visits or vehicle repairs.
How Debtors Can Seek Relief
While it appears that current economic challenges will persist for the remainder of 2022, American households like yours have options for dealing with mounting debt.
If you find yourself struggling to pay credit card bills or if debt collectors are harassing you, you should consider contacting Resolvly. Our lawyer referral service serves clients nationwide and can connect you with an experienced consumer protection attorney near you.
These attorneys will help you enforce your rights, end harassing collection calls, and guide you to the right legal-based solution to reduce or dismiss your unsecured debt.
Resolvly LLC is a Florida Bar-approved lawyer referral service that helps clients nationwide connect with consumer protection attorneys specializing in debt resolution.
Agents are there to help consumers compare the different debt relief assistance programs that are available. Every client is given a free consultation and overview of why legal-based debt resolution is the safest and most effective approach.
Resolvly adds a personal touch to debt assistance, and our ultimate goal is to help clients with their current debt while empowering them to not end up in the same position in the future. We are devoted to helping our clients reach true financial freedom. The company can assist with unsecured debt, including credit cards, medical bills, private student loans, business debt, and vehicle repossessions.
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