Average student debt is on the rise. Student loan debt statistics show that only a few short years ago, student debt surpassed credit card debt to become the second largest source of household debt after mortgages.
Four times a year, the Federal Reserve Bank of New York, one of the twelve regional Federal Reserve Banks making up “The Fed” (along with their Board of Governors in Washington, D.C.), issues a report on the nation’s economy. Several reports, actually, including one focused on household debt across the country. These are some of the most valuable sources we have regarding U.S. debt statistics, and while they can seem a bit overwhelming at times, there’s much worth noticing in these reports.
Debt, whether individual consumer debt, business debt, or even national debt, is a tool. When it serves your purposes, it’s a very useful and flexible tool. When it somehow takes over or derails your plans, it can be a tough beast to kill. Understanding debt is the first step towards giving ourselves the power to determine which way it plays out.