Michigan Debt Statistics


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.

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

michigan

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

☰ Use “CTRL+F” to quickly find statistics. There are total 23 Michigan Debt Statistics on this page 🙂

Michigan Debt “Latest” Statistics

  • According to Education Data Initiative, Michigan has a student loan debt of $51.0 billion and the average student loan debt is $36,116.[1]
  • 78.1% of the state’s mortgage debt was at least 90 days past due during the height of the financial crisis in late 2009.[2]
  • The University of Michigan flint witnessed the largest increase in the proportion of graduates carrying debt, from 24% in 2007 to 58% in 2017.[3]
  • According to the Institute of College Access and Success, the Michigan people has an average debt of $29,863 with a percentage of 58%.[4]
  • Other public universities that had the highest increases in the number of students with debt were Northern Michigan University, which saw a 12% rise, and Wayne State University, which saw an increase of 13% .[3]
  • Less than 10% of defendants in debt collection actions from 2010 to 2019 had legal representation, compared to virtually all plaintiffs, according to research on cases from 2010 to 2019.[5]
  • According to USDA, debt-to-asset levels for the sector are forecast to improve from 13.56% in 2021 to 13.05% in 2022.[6]
  • From 2020 to 2021, total consumer debt balances climbed by 5.4%, or $772 billion, to reach $15.31 trillion, more than double the 2.7% growth that occurred from 2019 to 2020.[7]
  • The average loan debt for automobiles owned by buyers was $14,698, which was 31% less than the national average.[8]
  • In 2018, 65% of seniors who attended public and private non-profit universities and graduated had student loan debt.[9]
  • Farm sector assets are expected to increase 10% to $3.85 trillion while farm sector debt is expected to increase 5.9% to $501.9 billion in 2022.[10]
  • Farm non-real estate debt is expected to increase to $154.1 billion in 2022, a 2.8% increase in nominal terms but a 3.2% decline when adjusted for inflation.[10]
  • The national statistics reflect that general trend, with public colleges reporting a roughly 5% increase in graduates with debt.[3]

Michigan Debt “House” Statistics

  • In Michigan, the average consumer debt is $72,735, nearly $25,000 below the national average.[2]
  • The median Michigan household has a net worth of $117,600, although more than 60% of it is from equity in their home.[11]
  • Michigan consumers carry $800 less in credit card debt than the national average of $5,200 per borrower.[12]
  • According to Federal Reserve data, household debt rose 8.3%, the biggest annualized gain since 2006.[12]

Michigan Debt “Other” Statistics

  • The average Michigan resident carries $150,482 in mortgage debt which is ninth lowest among the 50 states.[2]
  • When it comes to student loan debt, Michigan residents are averaging $36,642, 18th highest in the country.[2]
  • Michigan is in the top 10 lowest credit card debt in the nation with an average of $4,692.[2]
  • In 2018 to 2019, 59% of Michigan college graduates had student loan debt. The average amount owed was $30,677, putting the state 17th highest in the U.S.[8]
  • 47% of those who took out private loans for education borrowed less than they would have under the government Stafford loan program.[9]
  • Debt collection lawsuits occupied an increasing percentage of civil dockets from an estimated 1 in 9 civil cases to 1 in 4 from 1993 to 2013, more than doubling from less than 1.7 million to nearly 4 million.[5]

Also Read

How Useful is Michigan Debt

One state that has been under scrutiny for its debt levels is Michigan. With a significant amount of outstanding debt, many are questioning how useful this debt actually is for the state and its residents. While debt can be a useful tool for funding important infrastructure projects and other public initiatives, excessive debt levels can also put a strain on a state’s finances and limit its ability to invest in other areas.

One argument in favor of Michigan’s debt is that it has been used to fund critical projects that benefit the state as a whole. Infrastructure improvements, such as roads, bridges, and public buildings, are often funded through borrowing, allowing the state to address pressing needs without having to raise taxes or cut services. These investments can have long-term benefits for residents, improving quality of life and supporting economic growth.

Additionally, debt can be used to smooth out budget imbalances during times of economic hardship. When revenues are down, borrowing can help cover operating expenses and prevent cuts to essential services. This flexibility can be crucial for state governments, allowing them to weather economic downturns without having to make drastic cuts that could harm residents.

However, while debt can be a useful tool in certain circumstances, it also comes with risks. High levels of debt can lead to increased interest payments, diverting funds away from other priorities. Additionally, a state that relies too heavily on debt to fund ongoing expenses can find itself in a precarious financial position, unable to keep up with payments and facing potentially damaging consequences.

Another concern with Michigan’s debt levels is the impact on future generations. As debt is often repaid over many years, today’s borrowing can burden future taxpayers with the costs of projects that may not directly benefit them. This intergenerational transfer of debt raises questions about fairness and responsible stewardship of public resources.

Ultimately, the usefulness of Michigan’s debt depends on how it is managed and what it is used for. Responsible borrowing to fund critical infrastructure and address short-term budget shortfalls can bring long-term benefits to the state and its residents. However, excessive debt levels and borrowing for non-essential projects can pose risks to the state’s financial stability and future prosperity.

As Michigan continues to navigate its debt levels, it will be important for policymakers to carefully weigh the costs and benefits of borrowing. By prioritizing investments that provide the greatest return for residents and ensuring that debt levels remain sustainable, Michigan can use debt as a strategic tool to support economic growth and prosperity for all its residents.

Reference

  1. educationdata – https://educationdata.org/student-loan-debt-by-state
  2. debt – https://www.debt.org/faqs/americans-in-debt/consumer-michigan/
  3. michiganradio – https://www.michiganradio.org/news/2019-07-18/heres-a-school-by-school-breakdown-of-student-debt-in-michigan
  4. ticas – https://ticas.org/interactive-map/
  5. pewtrusts – https://www.pewtrusts.org/en/research-and-analysis/reports/2020/05/how-debt-collectors-are-transforming-the-business-of-state-courts
  6. usda – https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-farm-income-forecast/
  7. experian – https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/
  8. incharge – https://www.incharge.org/debt-relief/credit-counseling/michigan/
  9. forbes – https://www.forbes.com/sites/zackfriedman/2021/02/20/student-loan-debt-statistics-in-2021-a-record-17-trillion/
  10. usda – https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/assets-debt-and-wealth/
  11. mlive – https://www.mlive.com/public-interest/2022/03/1-in-5-michigan-households-have-net-worth-of-500000-or-more.html
  12. neweradebtsolutions – https://neweradebtsolutions.com/debt-settlement-michigan/

Leave a Comment