QoD [UPDATED]: Excluding home loans, what are the three largest debts for American consumers?
Extra credit if you can rank them from highest to lowest
- Student loan
- Auto loan
- Credit Card
- Which type of credit has grown the fastest from 2003-2021? Why do you think this is the case?
- Using the chart, estimate the growth rate (in trillions of dollars) between 2003-21 for student loans, auto loans and credit cards.
- What change do you see in credit card debt in early 2020 at the onset of the pandemic?
- Write a one sentence summary for this graph.
Behind the numbers (Visual Capitalist):
The key stories in non-housing consumer debt are student loans and auto loans. The former category of debt has grown substantially over the past two decades, with growth tapering off during the pandemic. This can be attributed to COVID relief measures which have temporarily lowered the interest rate on direct federal student loans to 0%...Auto loans, on the other hand, are following a similar trajectory as mortgages. Both new and used car prices have risen due to the global chip shortage, which is hampering production across the entire industry. To put this in numbers, the average price of a new car has climbed from $35,600 in 2019, to over $47,000 today. Over a similar timeframe, the average price of a used car has grown from $19,800, to over $28,000.
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