The Use Of Personal Loans in US

Someone concluded that Americans make money and spend money on consumption. The American view of consumption and investment is not tied to the family’s asset structure and income structure. In the distribution of private capital, U.S. citizens make up only 15% of their personal financial services deposits in financial institutions, while stocks, mutual funds, bonds, life insurance products and other investments account for 85% of personal financial assets. Among the U.S. family income, wages and other labor income and investment income are equally divided, each accounting for about 50%. The ups and downs in the US stock market have largely affected the total assets and consumer confidence of many households.

There is also the American real estate market that also inspires Americans. Statistics show that the overall US house price has risen 51% so far this year since 1995, 32% more than the inflation rate in the same period. The appreciation in some areas is even more remarkable. For example, the price of a home in Boston has risen 110% since 1996. For Americans owning property, the rate of increase in home prices over the past two years is more than three times the rate of revenue growth. The increase in per capita wealth, driven by rising home prices, can encourage Americans’ consumer confidence more than their boss’s salary increases.

Data from developed countries show that consumption in any one country is supported by the broad middle and low income groups. The structure of the social class in the United States is obviously conducive to supporting consumption. In the United States, the middle class with an average household income of 30,000 U.S. dollars accounts for 80% of the total population. The distribution of the entire American social class is olive-shaped, two large middle small. The strong middle class is a solid foundation for strong consumer spending in the United States.

Northwestern Mutual Life Insurance Company, a life assurance and financial services company, commissioned opinion polling firm Harris Poll to complete the report after surveying more than 2,000 U.S. adults in February of this year.

The staff in this company said debt, including mortgages and student loans, to invest for the future benefits consumers’ long-term financial plans. However, many surveyed consumers said they spend more than 40% of their earnings on non-essential items such as entertainment, leisure, personal interests and travel. One in four respondents said they are more likely to spend “overly” and “recklessly”.

Earlier studies have also shown similar results. In early April, the Federal Reserve reported that the total credit card debt of Americans had reached as high as 1 trillion U.S. dollars. Including mortgages, auto loans, credit card loans, and student loans, Americans have nearly $ 12.6 trillion in total debt.