What is the debt scenario in United States in 2010?

Everyone is aware of the devastating effects of the recent economic crisis (2007-2009). Though the nation has tried to recover from the effects of the crisis, yet it has not been able to recover fully. Go through the article to know about the current debt scenario in US.

Credit card debt is one of the major concerns of the US people in present times. Researches reveal that in 2010, the average credit card debt per household is around 15,700 USD. A number of citizens are struggling to get out of debt. If you’re experiencing the same situation, then understanding personal finance and managing it properly may help you solve your debt problems. You need to assess your financial status so that you can take necessary steps to manage your money in a better way.

Another growing concern is student loan debt. As a result of the sluggish economy, a number of students have defaulted on education loans. With the rise of unemployment, students are unable to find good employment opportunities and as result, they’re not able to pay off their education loans. On an average, the students are graduating with about 23,200 USD in debt.

A report published by the Federal Reserve (in 2nd quarter 2010) has stated that average students owe about 826 USD in revolving credit. Understanding personal finance situation can help them to manage their finances accordingly, which in turn, may help them to overcome debt problems. The students should learn how to manage credit cards properly. They should refrain from charging credit cards for each and every purchase.

People are also struggling to pay off mortgage debts. During the second quarter of 2010, about 7 million homes were either under foreclosure or vacant. As per the Fed data, the mortgage debt had reached 14.1 trillion in June 2010. Moreover, about 10% more borrowers have become delinquent on their mortgage loans. So the national mortgage debt amount may increase further in near future.

However, the mortgage rates have decreased significantly in the recent times. The rates have been historically low during third quarter of 2010. The interest rate on a 30-year FRM (Fixed Rate Mortgage) is around 4.5% and the interest rate on a 15-year FRM is around 3.9%. Such low mortgage rates can help borrowers to refinance their existing mortgages into more affordable home loans. The Obama Government has also introduced several programs that can help the borrowers to get current on their home loans and pay them off completely.