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The average amount Americans pay just to cover their debt payments has soared by $350 a month in recent years, due to a combination of rising prices, ballooning balances, and prohibitively high interest payments.
According to a new report from LendingTree, consumers are paying an average of $1,583 each month to repay their debt, up from $1,233 when the data was surveyed in 2020.
Tuesday, December 6, 2022 at a residence in Rocklin, California. Home prices have skyrocketed since the pandemic began in 2020. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
Unsurprisingly, mortgages account for the most debt, with homeowners paying an average of $1,855 a month. The average monthly car payment is $690, while personal loans have the third-highest monthly payment, averaging $517, according to the analysis.
Credit card delinquencies soar as Americans battle high inflation and interest rates
The average payment for student loan borrowers is $307, and the average minimum payment for credit card holders is $272.
LendingTree acknowledges that the average amount most Americans are actually paying is probably even higher than their findings, as the majority of credit card holders pay more than the minimum payment amount. . (Simon Dawson/Bloomberg via Getty Images/Getty Images)
Matt Schultz, chief credit analyst at LendingTree, told FOX Business that the actual amount consumers are paying each month to pay off their debt is probably actually higher than the survey numbers show. Ta.
Survey reveals that nearly 30% of Americans in metropolitan areas are behind on debt payments
“These numbers are really high, but for many Americans the reality is probably even worse,” he says. “That's because when it comes to credit cards, our report calculations only include the minimum payment amount. The vast majority of credit card holders pay far more than the minimum amount each month, so most of Americans are likely to be paying significantly more than what we listed.'' report. “
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Schultz pointed to a Consumer Financial Protection Bureau report last year that found only 13% of general purpose account holders and 17% of private label account holders made only the minimum monthly payment.
