What are recent trends that are adding to personal debt?

If you are looking to exert tighter control over your expenses, it is a good idea to watch out for the latest trends in American spending that are adding to people’s personal debts.  In its yearly analysis of household debt for the United States, Nerdwallet discovered Americans wrestled with a number of particular expenses in the year 2018. These expenses generally outpaced the median income of Americans and are something New Jersey residents should watch out for.

First off, many Americans are still facing the specter of higher medical costs. Since the year 2008, medical expenses have risen faster than the rate of median income. Unfortunately, medical expenses are not easy to control. Purchasing treatment, drugs or other forms of care is often critical to preserving health or is even needed to save one’s life. Even with health insurance, costs may not fall enough to make an appreciable difference. Some people are even stuck with thousands of dollars in debt.

It is also becoming increasingly expensive to go to restaurants or to order takeout meals. In fact, the cost of purchasing food outside of the home has risen 27 percent since the year 2008 and has raced ahead of the growth of median income. Fortunately, controlling takeout expenses is easier than handling the cost of health care, as many people can switch to lower cost avenues of buying food, like sticking to the grocery store.

Americans are also facing problems stemming from student loan forbearance. While opting for forbearance gives people a pause in paying off their student debt, it does not stop interest from accumulating. In fact, forbearance can add thousands of dollars to existing student debt. While people may appreciate not having to make payments for a period of time, over the long term forbearance may not be an affordable option.

Credit card interest is also presenting a challenge for households. Nerdwallet estimated that households possessing credit card debt will likely pay $1,141 on average in interest for this year. The magnitude of interest also depends on the type of household. If children are part of the household, then the household is more likely to have credit card debt and thus have to pay interest on it as opposed to those households without children.

Keep in mind that this article is only written to educate readers on debt relief topics. It does not provide any legal advice.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Tell Us About Your Case

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Keep In Touch

East Orange Office
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017

Phone: 973-414-8069
Fax: 973-675-5886
Map & Directions

Newark Office
168 Bloomfield Avenue
Newark, NJ 07104

Phone: 973-419-5266
Map & Directions

Paterson Office
100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510

Phone: 973-419-7631
Map & Directions

Jersey City Office
26 Journal Square,
Suite 603
Jersey City, NJ 07306

Phone: 201-205-2496
Map & Directions