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, when used judiciously, can be a powerful tool for financing major projects or investments that would otherwise be impossible without sufficient capital. In some cases, taking on debt can even be a prudent strategic move, as it can enable long-term growth and contribute to economic development. For California, a state known for its groundbreaking technology sector, vibrant cultural scene, and thriving agricultural industry, investments in infrastructure, education, and sustainable energy could yield substantial long-term benefits.

However, critics argue that California’s debt levels have reached unsustainable levels, risking the state’s financial stability and putting pressure on future generations to service the debt. Concerns have been raised about whether the state is taking on debt responsibly, and whether the enormous budget deficits are hindering its ability to provide essential public services and invest in its residents’ wellbeing.

One of the key questions surrounding California’s debt is how effectively it is being used. Some argue that the state’s borrowing is financing projects with uncertain or ambiguous economic benefits, such as costly infrastructure projects that may not be necessary or economically viable. Others question whether the debt is being managed appropriately, with concerns about fiscal discipline and oversight of government spending.

Moreover, critics worry about the impact that a high level of debt could have on California’s creditworthiness and ability to borrow in the future. A downgrade in the state’s credit rating could lead to higher borrowing costs, ultimately squeezing resources that could otherwise be directed towards important programs and services.

Despite these concerns, many proponents of California’s debt argue that borrowing is a necessary evil in order to make much-needed investments in the state’s future. They emphasize that in an economy driven by innovation and technological advancements, California must continue to invest in key sectors to maintain its competitive edge and drive long-term economic growth.

The debate over California’s debt is complex and multifaceted, with valid points on both sides of the argument. As the state continues to grapple with budgetary challenges and rising debt levels, it is crucial for policymakers to carefully consider the implications of their borrowing decisions and prioritize investments that will foster sustainable growth and prosperity for all Californians.

In the end, the question of how useful California’s debt truly is remains an open one, with no easy answers. Only time will tell whether the state’s borrowing practices will serve as a powerful engine for future growth or a burden to be reckoned with in the years to come.

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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