Average American household debt estimated to be $90K

Average American Household Debt Estimated To Be $90K
Average American Household Debt Estimated To Be $90K

The average American household is over $90,000 in debt, reports TIME.

Limited to debtors, the average rises to a staggering $130,922—with $15,762 of that from credit cards alone—according to figures published by the consumer finance website NerdWallet.

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Such debt also includes student loans, auto loans and mortgages.

So, why do Americans have so much debt?

The largest single contributor seems to be the fact that the cost of living in the United States has exceeded income growth for the past 12 years.

Since 2003, median incomes have risen by around 26%, however, medical costs grew by 51% while food costs grew by 37% during the same time frame.

Another key problem is the size of the debt itself. Most Americans don't even know what exactly they owe.

This becomes an acute issue with credit card debt in particular as lenders report, on average, debt is 155% more than what borrowers believe their balances to be.

And, with such a large debt load comes quite the cost. The average U.S. household pays $6,658 each year in interest alone.

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