Tennessee Debt Statistics


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

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

☰ Use “CTRL+F” to quickly find statistics. There are total 28 Tennessee Debt Statistics on this page 🙂

Tennessee Debt “Latest” Statistics

  • According to Experian, the average mortgage debt level of $155,844, representing an increase of 2.7% compared to 2018, and ranking the state 31st in the nation.[1]
  • According to Education Data Initiative, $31.4 billion in student loan debt belongs to Tennessee residents.[2]
  • According to Consolidated Credit, the average credit card debt per household is $6,217.[3]
  • Tennesseans had an average debt-to-income (DTI) ratio of 1.33 to 1.41 in the first quarter of 2020, according to a study published by the Federal Reserve.[4]
  • 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.[5]
  • The average student loan debt in Tennessee, which includes both federal and private loans, is $34,607, which is 6% less than the national average of $36,689.[6]
  • Since 2003, the nationwide total average auto loan balance per capita has increased from $2,960 to $5,210—an increase of around 76%.[7]
  • In 2016, the 10th highest percentage in the nation, 24% of Tennesseans with credit histories had medical debt on them.[8]
  • Debt-to-asset levels for the sector are forecast to improve from 13.56% in 2021 to 13.05% in 2022.[9]
  • In 2019, the United States had the largest percentage of industrialized countries with risky non-financial corporate debt at 35.68%.[10]
  • According to educationdata.org, the average student debt for Tennesseans in 2020 was around $36,200.[11]
  • 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.[12]
  • In the last ten years, courts have settled more than 70% of debt collection cases with default judgments in favor of the plaintiff.[5]
  • Companies in developing countries owned around 31% of this debt, an amount that has been continuously expanding over the last ten years, up from about 9% in 2008.[10]
  • Due to the low cost of living in the volunteer state, even if it is a 2.7% increase from the prior year, it is still a comparatively low level of debt.[11]
  • With a debt ratio of approximately 17.3%, Tennessee has the fifth lowest level of state debt in the US.[11]
  • In 2016, there were 95 counties in Tennessee, with a range of 10% to 43% of residents having medical debt on their credit record.[13]
  • Working capital, which measures the amount of cash available to fund operating expenses after paying off debt due within 12 months, is forecast to rise 4.7% in nominal dollars but fall by 1.4% when adjusted for inflation.[9]

Tennessee Debt “Household” Statistics

  • Tennessee residents rank 44th nationally in the amount of household credit card debt held, checking in at an average level of $6,217, 33.3% less than the national average of indebted households of $9,333.[1]
  • Tennessee’s 2018 median household income level of $50,972 checked in 17.7% lower than the national median household income level of $61,937.[1]

Tennessee Debt “House” Statistics

  • According to the most current statistics available, Tennesseans who own their own houses had an average mortgage debt of $155,844.[11]
  • The median household debt-to-income ratio in Tennessee during the second quarter of 2020 stood at 1.51 to 1.62, which is above the national average of 1.51, the Federal Reserve System recently reported.[14]

Tennessee Debt “Other” Statistics

  • According to lendedu, 55% of graduates from the Class of 2019 had student debt.[15]
  • According to the 2015 National Financial Capability Study (NFCS), 27% of Tennesseans aged 18 to 64 had past due medical expenses that needed to be paid.[8]
  • According to UT Institute of Agriculture, educational debt rates varied from 66% to 81%.[5]
  • During the second quarter of 2019, the debt-to-income ratio for Tennessee was between 1.33 and 1.41.[14]
  • 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]
  • According to a 2015 survey, 11% of persons nationally were expected to not have a credit report, and those with lower incomes are less likely to have one.[13]

Also Read

How Useful is Tennessee Debt

First and foremost, it is important to recognize that debt, when used responsibly, can be a valuable tool for financing essential projects and investments. For a state like Tennessee, which is steadily growing and evolving, maintaining critical infrastructure, supporting education, and fostering economic development are crucial priorities. In many cases, taking on debt to fund these initiatives can provide immediate benefits to residents and businesses while spreading the cost over time.

Additionally, debt can help mitigate the impact of volatile revenue streams and unexpected expenditures. As recent events like the COVID-19 pandemic have shown, economic disruptions can have significant repercussions for state budgets. By having access to debt mechanisms, Tennessee can better weather financial storms and continue providing essential services to its citizens during challenging times.

Moreover, debt can also be a strategic tool for taking advantage of favorable market conditions. With interest rates at historically low levels, borrowing now to finance long-term projects could ultimately yield cost savings for the state. By locking in low rates for future investments, Tennessee can make its debt dollars stretch further and maximize the return on its expenditures.

At the same time, it is crucial for policymakers to exercise caution and prudence when managing debt levels. Overspending and accumulating excessive debt can lead to credit downgrades, increased borrowing costs, and ultimately constrain the state’s financial flexibility. Ensuring a sustainable approach to debt management is key to reaping the benefits of debt while safeguarding Tennessee’s long-term fiscal health.

Furthermore, it is essential for accountability and transparency to be maintained in the use of debt proceeds. Residents and taxpayers have the right to know how their dollars are being allocated and whether debt-funded projects are delivering the expected outcomes. Establishing robust reporting mechanisms and oversight processes can help build trust and confidence in Tennessee’s debt practices.

In conclusion, Tennessee debt, when used judiciously and responsibly, can be a powerful tool for driving economic growth, supporting critical infrastructure, and enhancing the overall quality of life for residents. By striking the right balance between leveraging debt for strategic investments and maintaining fiscal discipline, the state can navigate the complex financial landscape and ensure a prosperous future for generations to come. With careful planning and thoughtful stewardship, Tennessee can harness the utility of debt to build a stronger and more resilient economy for all.

Reference


  1. unitedsettlement – https://unitedsettlement.com/tennessee-debt-settlement/
  2. educationdata – https://educationdata.org/student-loan-debt-by-state
  3. consolidatedcredit – https://www.consolidatedcredit.org/debt-relief/tennessee/
  4. finder – https://www.finder.com/tennessee-debt-relief
  5. pewtrusts – https://www.pewtrusts.org/en/research-and-analysis/reports/2020/05/how-debt-collectors-are-transforming-the-business-of-state-courts
  6. studentloanhero – https://studentloanhero.com/featured/tennessee-student-loans-refinance/
  7. clarksvillenow – https://clarksvillenow.com/local/see-the-average-auto-loan-balance-per-capita-in-tennessee/
  8. sycamoreinstitutetn – https://www.sycamoreinstitutetn.org/medical-debt-tennessee/
  9. usda – https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/highlights-from-the-farm-income-forecast/
  10. statista – https://www.statista.com/topics/5724/global-corporate-debt/
  11. incharge – https://www.incharge.org/debt-relief/credit-counseling/tennessee/
  12. experian – https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/
  13. sycamoreinstitutetn – https://www.sycamoreinstitutetn.org/medical-debt-tn-counties/
  14. thecentersquare – https://www.thecentersquare.com/tennessee/debt-to-income-ratio-of-tennessee-households-averaged-up-to-1-62-in-q2/article_1457718a-4589-11eb-a72e-7383389dfbf4.html
  15. lendedu – https://lendedu.com/blog/average-student-loan-debt-statistics

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