US household debt rises by $85 billion in just 3 months

us household debt

US household debt crisis…

In a shocking turn of events, the total balance for us household debt owed in both mortgages and auto loans increased by a whopping $85 billion, resulting in a 0.6% increase, and bringing the total sum to $14.64 trillion. This exponential rise in household debts was recorded in the first quarter of 2021 and is probably a direct result of the devastation caused by the global Covid-19 pandemic.

Notably, there was a jump in both mortgages and auto loans. Mortgage debt increased by $177 billion during the Covid-19 pandemic, and auto loans by $8 billion, with about 15% of the loans going to borrowers with credit scores lower than 620.

It is also interesting to note that consumer debt in the form of student loan balances rose by $29 billion, despite President Biden’s student loan forgiveness plan, bringing the total figure to $1.58 trillion.

Although relief policies and stimulus checks do play their part towards helping you and I gain a little stability over consumer debt, the amount of us household debt is projected to keep rising, and it is about time that you begin to seek concrete solutions towards the resolution of your consumer debt.

Why you need to start seeking debt relief solutions

In the wake of a devastating pandemic that has skyrocketed us household debt and left the most vulnerable Americans in a precarious situation, here are 4 reasons why you should begin seeking ways to relieve your consumer debt today:

1. To claim any compensation you may have overlooked: The FDCPA and TCPA make provisions for you to receive compensation for the violation of any of your consumer rights during the process of debt collection. You may be eligible for a $500, $1000, or $1500 compensation that you may not even know about. Call us now at 877-700-5790 to determine if you have a valid case.

2. To avoid bankruptcy: While a viable solution in some cases, filing for bankruptcy leaves a stain that will stick to your credit report for about 10 years. This “stain” negatively impacts your credit score and makes otherwise easy endeavors (such as securing a mortgage or auto loan and getting a tax refund) nearly impossible.

3. To settle your debts much quicker: There is a feeling of relief that comes along with being completely free from your consumer debt and household debt. A good debt relief firm like ours will assess your unique situation and look for loopholes that will set you on the path to financial freedom much quicker.

4. To pay less than the amount you owe to your original creditor or debt collection agency: Yes, debt reduction is possible. A debt relief firm can facilitate the reduction of your consumer debt by arranging a debt settlement agreement between you and the debt collection agency that you owe. Here the collector will agree to discharge your debt for pennies on every dollar that you owe. Call us now at 877-700-5790 to discuss this option.

Call us

Found this article helpful? Click to read more articles

Free Case Review

=
BBB
Know Your RIGHTS: Insider Insights Into Consumer Rights w/ Attorney Derek DePetrillo episode of Credit Conversion Conversations