California Debt Statistics


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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

Proponents of California debt argue that borrowing money allows the state to fund important projects and programs that would otherwise be impossible to finance. From education to healthcare to transportation, debt can be a valuable tool for ensuring that necessary services are provided to residents. For example, without debt, California may not have been able to make crucial investments in its infrastructure, such as highways, bridges, and water systems. In addition, borrowing can be a strategic way to take advantage of historically low interest rates, allowing the state to lock in favorable terms for repayment.

Furthermore, debt can serve as a way to stimulate economic growth and job creation. By investing in public works projects, California can create opportunities for contractors, suppliers, and other businesses, thereby boosting economic activity and employment. In times of economic downturn or recession, debt can help to stabilize the state’s economy and prevent further contraction. Without the ability to borrow, California may be forced to make significant cuts to essential services, leading to layoffs and other negative consequences.

However, critics of California debt argue that excessive borrowing can put the state at risk of financial instability and long-term harm. Accumulating too much debt can lead to higher interest payments, which in turn can crowd out spending on other priorities. In addition, high levels of debt can damage the state’s credit rating, making it more costly for California to borrow in the future. This can create a cycle of debt accumulation that becomes increasingly difficult to break.

Moreover, some argue that debt can be a sign of fiscal irresponsibility and a lack of long-term planning. If California continually relies on borrowing to fund its budget, it may be avoiding making difficult decisions about revenue and spending. Instead of addressing underlying fiscal challenges, the state may simply kick the can down the road and leave future generations to deal with the consequences of its actions.

Ultimately, the usefulness of California debt depends on a careful balance of considerations. While borrowing can be a valuable tool for funding essential services and stimulating economic growth, it must be done responsibly and with an eye towards long-term sustainability. California policymakers must carefully weigh the benefits of debt against the potential risks, and ensure that any borrowing is done with a clear plan for repayment and fiscal discipline. Only then can California ensure that its debt is truly useful in improving the lives of its residents and securing a prosperous future for the state.

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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