Consumer Debt Continued To Rise During 04
Bankrate.com said that all types of consumer debt continue to rise and were up 4% during 2004. The Federal Reserve said that total non-mortgage consumer debt among Americans is now approximately $2.1 trillion. For each of the approximate 120 million households in this country, that's $17,530 in non-mortgage debt, up from $16,035 in 2002. Mortgage and home equity debt are not included in these totals.
Bankrate.com said the average length of a new car loan is still approximately five years with an average amount financed in 2004 of $24,888. The percentage of the vehicle's price that is financed was lower than in recent years, 89% versus 91% to 95% each year since 2000, so borrowers own slightly more of the vehicle than in the past several years. Revolving debt, which is debt that is not paid back on a predetermined schedule, is comprised primarily of credit card debt.