Texas Debt Statistics

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

LLCBuddy editorial team did hours of research, collected all important statistics on Texas 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 Texas 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 Texas 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 Texas Debt Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 20 Texas Debt Statistics on this page 🙂

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Texas Debt “Latest” Statistics

• According to Education Data Initiative, $120.0 billion in student loan debt belongs to Texas residents.^[1]
• The average student loan debt in Texas is $32,920, and 52.3% of loaners are under the age of 35.^[1]
• Monthly student loan payment is calculated using the standard 10 year repayment plan.^[1]
• According to Federal Reserve Bank of Dallas, the portion of Texas’ student debt that is currently at least 90 days past due is about 13.3%, while the total balance carried by Texas borrowers has almost tripled since 2006, adjusting for inflation.^[1]
• In Texas, the average student loan amount is more than the average car loan, which sits at about $23,515.^[1]
• The average balance carried for credit card holders is $6,139, and mortgage debt is the highest at $172,889 on average.^[1]
• The household debt declined from 97% of gross domestic product (GDP) at year-end 2008 to approximately 75% as of Sept. 30, 2018.^[1]
• According to the New York Federal Reserve, consumer debt reached $14.56 trillion after the fourth quarter of 2020.^[1]
• Total mortgage debt rose to $10.4 trillion, an increase of $1 trillion from the same juncture in 2017.^[1]
• According to Forbes, California, Florida, Texas and New York represent more than 20% of all U.S. student loan borrowers who collectively owe more than $340 billion of student loan debt.^[1]
• According to Experian, the average auto loan amounts have steadily increased in the past decade, reaching $41,665 for new vehicles and $28,506 for used vehicles in the third quarter of 2022.^[1]
• Overall vehicle debt nearly doubled between the third quarter of 2012 ($768 billion) and the third quarter of 2022 ($1.52 trillion), according to the Federal Reserve Bank of New York.^[1]
• From 1993 to 2013, the number of debt collection suits more than doubled nationwide, from less than 1.7 million to about 4 million, and consumed a growing share of civil dockets, rising from an estimated 1 in 9 civil cases to 1 in 4.^[1]
• Over the past decade in the jurisdictions for which data are available, courts have resolved more than 70 percent of debt collection lawsuits with default judgments for the plaintiff.^[1]
• According to Self, Texas’ average household debt in 2019 is $45,290. The average household debt nationwide in 2019 is $51,580.^[1]
• The average student loan amount in Texas rose almost $9,000 between 2006 and 2018. Nationally, average student loan amounts rose by only $1,400 between 2006 and 2019.^[1]
• Since 2003, mortgage debt in Texas has risen almost 70%.^[1]
• The average credit card debt in the US increased 14.53%.^[1]
• USDA’s Rural Utilities Service offers more than $700 million annually for infrastructure loans that can be used to provide or enhance broadband services to certain communities.^[1]
• According to comptroller.texas.gov, FRBNY found that 15% of borrowers in 2019 were 90 days or more in default on their student loans when delinquency peaked at more than 17%.^[1]

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How Useful is Texas Debt

First and foremost, it is important to understand that debt is not inherently good or bad. Like any financial instrument, it can be used wisely or recklessly depending on how it is managed. In the case of Texas, debt has been utilized to finance investments in roads, schools, and other public infrastructure projects that benefit the state as a whole.

One of the key arguments in favor of Texas debt is that it allows the state to address pressing needs without burdening taxpayers with the full cost upfront. By spreading the cost of projects over time, the state can make critical investments that would otherwise be out of reach. Moreover, taking on debt can be a strategic way to take advantage of historically low interest rates and lock in favorable terms for financing.

Additionally, debt can serve as a valuable tool for managing cash flow and addressing short-term budget shortfalls. By borrowing to cover expenses during lean years, the state can smooth out fluctuations in revenue and maintain essential services without resorting to painful cuts or tax increases. In this way, debt can help stabilize the state’s finances and promote fiscal responsibility.

That being said, there are valid concerns about the risks associated with accumulating high levels of debt. Excessive debt can strain government budgets, lead to credit downgrades, and increase borrowing costs in the future. This can create a vicious cycle where debt payments consume a larger share of the budget, crowding out other priorities and limiting the state’s ability to respond to unforeseen challenges.

Furthermore, high levels of debt can undermine confidence in the state’s financial stability and erode its creditworthiness. This can make it more difficult for Texas to borrow money in the future and may result in higher interest rates, ultimately costing taxpayers more in the long run. As such, it is important for policymakers to strike a balance between leveraging debt for strategic investments and ensuring that the state’s finances remain sustainable in the long term.

In conclusion, Texas debt can be a useful tool when managed prudently and used to fund critical investments that benefit the state as a whole. However, policymakers must be mindful of the risks associated with accumulating high levels of debt and take steps to ensure that the state’s finances remain sustainable over the long term. By striking a careful balance between leveraging debt for strategic purposes and maintaining fiscal responsibility, Texas can continue to thrive and grow for years to come.

Reference

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1. pewtrusts – https://www.pewtrusts.org/en/research-and-analysis/reports/2020/05/how-debt-collectors-are-transforming-the-business-of-state-courts