Personal Loan Statistics 2017-2018
As the pockets of wealthy Americans continue to inflate, working-class citizens’ hard-earned stores of money consistently trend downhill, further and further widening the gap of income inequality. As such, many United States citizens find themselves in desperate need of money, unable to meet monthly bills and other obligations. The United States of America is filled with personal loans statistics, most commonly in the form of title, flex, and payday loans. Many disadvantaged people get caught in the seemingly never-ending cycle of personal loans, forced to pay large portions of their paychecks towards outstanding balances week after week, firmly solidifying low income perpetuity.
Let’s look into four personal loans statistics that you might find surprising, interesting, or eye-opening – hopefully you feel all three.
Experian held a web-based seminar earlier this year, in early January, 2017. One of the three leading credit agencies in the United States, Experian’s analytical expert Kelley Motley delivered some shocking statistics. Lo and behold, this statistic deals with the poverty cycle, perpetuated by personal loans. Research indicated that about 5% of those who had recently paid off an existing personal loan in the past few months had actually opened new personal loans. Similarly, of those 5% who can’t seem to get away from the financial dangers personal loans carry alongside them, over two-thirds opened personal loans at the same company in which they recently settled an old, outstanding balance.
In theory, personal loans are intended for emergencies only, as their high interest rates result in exorbitant financing charges. However, these statistics indicate that the “personal loan cycle” is real, as these loans cause emergencies from their interest, causing people to take out additional personal loans to cover debt from the first loan.
The National Center for Education Statistics accurately estimated that 20,500,000 students would attend United States postsecondary institutions. More high school graduates in American schools are immediately enrolling in college following secondary school graduation.
Recognizing the potential benefits of attending a postsecondary university for a bachelor’s degree isn’t difficult, although it seems many college graduates hadn’t thought out their academic plans prior to enrolling four years prior. All in all, 44,000,000 Americans have student loan debt, totaling to $1,400,000,000,000. When averaged out per student, math shows that recent graduates of May 2016 owed about $37,000, which unsurprisingly raised 6% compared to last year. Students are likely to keep attending college in such large groups, somehow.
While we’ve firmly established the widespread, deeply-rooted prevalence of student and personal loans, financing agreements on new and lightly-used vehicles are rapidly becoming acceptable in our debt-filled society. In total, the United States of America is chock-full of auto loan debt, calculated at $1,160,000,000,000. Out of 1,062,100 car loans in this country, it averages out at $30,032. Seeing as all three of these figures continue to rise – and already have over the past five years, raising from a total of $750 billion to $1,160 billion – Americans are likely to increasingly make the bad decisions that are financing vehicles, rather than purchasing them with cash or trade-ins.
A poll conducted by reputable research group Gallup indicated that less than one-third of United States citizens actually kept budgets. That same poll suggests those making more than $75,000 annually are at the threshold of budget making behaviors. However, poorer people should be making budgets, rather than one with more money to spend, This is likely to result in more debt and worse overall financial position for American citizens.