A recent report from the Federal Reserve warned that consumer debt is now more than $18tn and the people are worried. Americans’ “credit card and household debt reach all-time high”, reports Fox News. Consumers are “finding it harder and harder to pay off their debt”, claims CNN. A “third of Americans have more credit card debt than emergency savings”, says Marketplace.
Yes, consumer debt has ticked up this year. It’s true that some consumer debt – particularly student loans – has soared in the past few years. But – although worrisome – this debt is still being used to fund education and skills. Other consumer debts are being used to buy homes and cars and fund the purchases that make life livable, not to mention the many industries that rely on this spending.
