As of February 2024, the average monthly debt payment for U.S. consumers has risen to $1,225, marking a significant increase across all major debt types including credit cards, auto loans, and mortgages. This rise is largely attributed to inflation and higher interest rates, with Experian reporting at least an 8% increase in payments since 2022. The increase is more pronounced in newer loans, where payments are notably higher due to rising purchase prices and interest rates. Additionally, certain states, particularly those with strong tech industries, experience even higher average payments. Despite these challenges, the labor market remains a silver lining, with growing employment levels and wages providing some relief amid these rising financial pressures.
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