Pennsylvania Debt Statistics

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

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

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

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Pennsylvania Debt “Latest” Statistics

• According to the Federal Reserve Bank of New York, Americans owe $1.52 trillion in auto loan debt, accounting for 9.2% of American consumer debt.^[1]
• In the last ten years, courts have settled more than 70% of debt collection cases with default judgments in favor of the plaintiff.^[2]
• Only 18% of students receiving need-based aid took out loans to supplement their aid packages in 2020-2021, compared to 80% of students in 2004.^[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 the cases from 2010 to 2019.^[2]
• A debt management strategy may lower credit card interest rates from 20% to 25% or more to around 8%.^[4]
• Companies that specialize in debt settlement make claims that they can cut credit card amounts by up to 50%, however this is not always the case.^[4]
• Regarding debt relief and collection, Pennsylvania has particular regulations that include consumer rights like 10% wage protection.^[5]
• According to New Era Debt Solutions, creditors nationwide are sometimes willing to accept payments of less than 50% of the original balance owed because they tend to receive nothing from a bankruptcy proceeding.^[5]
• Pennsylvanians carry around $600 less in credit card debt and have better credit scores.^[5]
• Consumers may pay down 50–60% of their credit card balances via nonprofit debt settlement programs over the course of a 36 month program, and any residual amount is subsequently discharged.^[4]

Pennsylvania Debt “Other” Statistics

• According to University of Pennsylvania, only 18% of students receiving need-based aid took out loans to supplement their aid packages in 2020-2021, compared to 80% of students in 2004.^[6]
• According to LendEdu, the total amount of outstanding student loan debt is $1.7 trillion.^[7]
• Consumer debt reached $14.56 trillion after the fourth quarter of 2020, according to the New York Federal Reserve.^[8]
• Total mortgage debt rose to $10.4-trillion, an increase of $1 trillion from the same juncture in 2017.^[8]
• According to debt.org, the total auto debt in Q4 of 2020 is $1.37 trillion, a jump of $100 billion from the same time in 2018.^[8]
• According to Experian, the average auto loan term is 69.7 months for new cars, 68.1 months for used cars and 35.9 months for leased vehicles.^[1]
• 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.^[2]
• Pennsylvania law prohibits unlicensed lenders from charging interest rates more than 6% on consumer loans of $50,000 or less.^[4]
• In Pennsylvania, the average credit card debt is $2,990.^[4]
• According to data from the New York Fed, 90-day delinquency rates on auto loans peaked in the fourth quarter of 2010 at 5.3%, dropping to 3.9% as of the third quarter of 2022.^[1]

Also Read

How Useful is Pennsylvania Debt

One can argue that debt can be a powerful tool when used wisely and strategically. It can be used to boost economic growth, fund essential public services, and invest in infrastructure that benefits the entire population. With low-interest rates, borrowing money can be more cost-effective than using current funds, allowing resources to be allocated more efficiently towards short and long-term objectives.

In the case of Pennsylvania, debt has been utilized to finance important public projects such as transportation improvements, education initiatives, and healthcare infrastructure. These investments have helped stimulate the economy, create jobs, and enhance the quality of life for residents across the state. Without debt, the state may not have been able to make necessary investments in critical areas that benefit its citizens.

Moreover, debt can also provide a safety net during economic downturns or emergencies. By having access to borrowed funds, Pennsylvania can quickly respond to unexpected challenges or crises without disrupting essential services or delaying necessary projects. This flexibility can be invaluable in ensuring the continuity of government operations and protecting the well-being of residents during difficult times.

However, debt is not without its risks and pitfalls. Excessive borrowing can lead to financial instability, credit rating downgrades, and ultimately limit the state’s ability to borrow in the future. High debt levels can also result in increased interest payments, diverting resources away from other essential programs and services. It is crucial for Pennsylvania to manage its debt prudently and maintain a balance between leveraging financial resources and mitigating financial risks.

Transparency and accountability are essential in managing Pennsylvania’s debt effectively. Citizens have the right to know how their tax dollars are being used and how debt is being incurred and repaid. Clear communication and oversight mechanisms can help ensure that borrowed funds are used efficiently and effectively.

Ultimately, the usefulness of Pennsylvania debt depends on how it is leveraged, managed, and repaid. When used wisely and strategically, debt can be a valuable tool for investing in the future, stimulating growth, and enhancing the well-being of residents. However, it is essential for state leaders to exercise caution, prudence, and foresight in utilizing debt to ensure that Pennsylvania’s financial health is safeguarded for generations to come.

Reference

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1. lendingtree – https://www.lendingtree.com/auto/debt-statistics/
2. pewtrusts – https://www.pewtrusts.org/en/research-and-analysis/reports/2020/05/how-debt-collectors-are-transforming-the-business-of-state-courts
3. upenn – https://srfs.upenn.edu/financial-aid/undergraduate-aid-program/facts-and-figures
4. debt – https://www.debt.org/faqs/americans-in-debt/consumer-pennsylvania/
5. neweradebtsolutions – https://neweradebtsolutions.com/debt-settlement-pennsylvania/
6. upenn – https://budgetmodel.wharton.upenn.edu/issues/2021/12/15/consumption-under-inflation-costs
7. lendedu – https://lendedu.com/blog/average-student-loan-debt-statistics
8. debt – https://www.debt.org/faqs/americans-in-debt/