Issue 11 • Week of March 27, 2022
Tomorrow marks the start of Financial Literacy Month in April. However, we really need to consider it year-round because the average American family earned less than $68K in 2020 while is now a staggering $155K in debt. That amounts to $15 trillion in total across the country.
Personal debt has risen significantly since 2005 when Congress made it harder for people to declare bankruptcy. At least one Federal Reserve economist believes the change contributed to the Great Recession, though taxpayer-funded bailouts did not solve the problem. The amount owed by Americans in 2021 just on mortgages now equals all household debt that had been amassed in 2005 (mortgages, loans, credit cards, etc.). Updates to the law have been proposed but are expected to face a long road to passage.