California Debt Statistics


Steve Goldstein
Steve Goldstein
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California Debt Statistics 2023: Facts about Debt in California reflect the current socio-economic condition of the state.

california

LLCBuddy editorial team did hours of research, collected all important statistics on California Debt, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to start a California LLC business in 2023? Maybe for educational purposes, business research, or personal curiosity, whatever it is – it’s always a good idea to gather more information.

How much of an impact will California Debt Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

Please read the page carefully and don’t miss any word.

Top California Debt Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 27 California Debt Statistics on this page 🙂

California “Latest” Debt Statistics

  • The average Californian owes $371,981 in mortgage debt in 2020, according to debt.org.[1]
  • California has a below-average credit-card debt at $5,120, and the average Californian carries a $6,222 credit-card balance, which is the 16th-highest mark nationally.[1]
  • According to statistics gathered by Educationdataorg, blacks had an average student loan debt of $52,000 in 2021.[1]
  • According to Experian, consumer debt balances increased by 5.4% in Q3 2021 to $15.31 trillion, a $772 billion increase from 2020.[2]
  • Californians owes more than the average U.S. student loan borrower with $141.8 billion student loan and 51.7% of them are under the age of 35.[3]
  • According to the National Center for Education Studies, women are responsible for 58% of all student loan debt.[1]
  • According to more than 1 million anonymized LendingTree users’ credit reports from January 2021 through February 2021, California has an average credit card debt of $6,729.[4]
  • An individual will normally pay 10% –12% more for a debt consolidation loan if it utilize such collateral.[5]
  • In comparison to 22% of white college graduates, around 40% of black grads have student loan debt from graduate school.[1]
  • According to data from the Federal Reserve, the Consumer Financial Protection Bureau and Experian, the average debt of high school graduates is just 4,600.[1]
  • A debt management program in California is a proven way to reduce credit card interest rates from as high as 30% to about 8%, which will make a huge difference in your monthly payment.[5]
  • Credit card debt decreased by $73 billion, marking the first yearly decline in eight years and a 9% fall from 2019.[1]
  • The biggest increases in debt were seen in student loans (12%), mortgages (7%) and personal loans (6%).[1]
  • According to a Brookings Institution survey, 6% of borrowers have student loan debt over $100,000, with 2% having debt exceeding $200,000.[1]
  • The median amount of debt held by Americans in the top 10% of earners is $222,200, compared to less than $20,900 for those in the poorest 25%.[1]
  • According to the Department of Education, 34% of total debt was owed by those aged 18 to 29.[1]
  • Californians owe more than $116 billion on their credit cards, which is approximately 11.5% of the nation’s total debt of more than $1 trillion.[6]
  • People in the highest 10% of annual income had an average credit card debt of $12,600, according to a 2021 ValuePenguin analysis of Census and Federal Reserve reports.[1]

California “Household” Debt Statistics

  • The National Institute for Retirement Security’s 2020 study found that their median household retirement income was $47,244.[1]
  • According to the latest Quarterly Report on Household Debt and Credit, total household debt rose by $351 billion, or 2.2%, to reach $16.51 trillion in the third quarter of 2022.[7]
  • According to the Federal Reserve, American household debt reached a record high of $14.6 trillion in the spring of 2021.[1]

California “House” Debt Statistics

  • According to the Economic Policy Institute, blacks’ median household income increased from $45,442 to $46,073 between 2000 and 2019.[1]
  • The US Department of Housing and Urban Development estimates that in the first quarter of 2021, the median household income reached $79,000.[1]
  • Between 2008 and 2016, the price of a single family detached home in California more than doubled. While California ranks at the top in terms of mortgage debt, the amount of debt has steadily dropped since 2008, from $70,100 to $57,170 in 2020.[6]

California “Other” Debt Statistics

  • The average student-loan balance in California is $28,950, well below the national average of $37,173.[1]
  • In California, if someone has a credit card balance of $5,000 and is paying a 25% interest rate, they would pay $105 in interest per month.[5]
  • The SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000, starting from April 6, 2021 onwards.[8]

Also Read

How Useful is California Debt

Debt can be a powerful tool when used effectively. It can be used to finance important infrastructure projects, stimulate economic growth, and provide much-needed services to citizens. In California, the state government has utilized debt to fund various initiatives, from improving roads and bridges to investing in education and healthcare.

However, the key to effective debt management lies in ensuring that the borrowed funds are put to good use and that they generate returns that outweigh the costs of borrowing. This is where the usefulness of California’s debt comes into question. While some of the state’s debt has undoubtedly been used for beneficial purposes, there are concerns about whether all of it has been wisely spent.

One of the main criticisms of California’s debt is that much of it has been incurred to cover budget deficits. This raises the question of whether the state is relying too heavily on borrowing to finance its day-to-day operations, rather than addressing underlying issues that are driving these deficits. If the debt is not being used to invest in the state’s future, then it may not be as useful as it could be.

Another concern about California’s debt is the potential impact on future generations. As the state continues to accumulate debt, future taxpayers may be burdened with repaying these obligations. This could limit the state’s ability to invest in important initiatives down the road, leading to a cycle of debt that is difficult to break.

Despite these concerns, it is important to acknowledge that not all debt is bad. In some cases, taking on debt may be necessary to address urgent needs or invest in long-term projects that have the potential to provide significant benefits to California and its residents. It is crucial for state leaders to carefully evaluate the costs and benefits of each borrowing decision to ensure that debt is being used effectively.

In conclusion, the usefulness of California’s debt ultimately depends on how it is being used. While debt can be a valuable tool when used wisely, there are legitimate concerns about the state’s growing debt load and the implications for future generations. Moving forward, it will be important for California to prioritize investments that have the potential to create lasting value for the state and its residents, while also taking steps to ensure that its debt levels remain sustainable.

Reference

  1. debt – https://www.debt.org/faqs/americans-in-debt/demographics/
  2. experian – https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/
  3. educationdata – https://educationdata.org/student-loan-debt-by-state
  4. lendingtree – https://www.lendingtree.com/credit-cards/study/credit-card-debt-california-statistics/
  5. debt – https://www.debt.org/faqs/americans-in-debt/consumer-california/
  6. self – https://www.self.inc/info/average-credit-score-and-debt-california/
  7. newyorkfed – https://www.newyorkfed.org/microeconomics/hhdc/background.html
  8. ca – https://business.ca.gov/coronavirus-2019/

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