Consumer debt has reached a new high, $12.7 trillion, surpassing the previous high set in 2008. While mortgage debt has declined since 2008, car loan debt has increased $388 billion and student loan debt has risen nearly twice that much. Analysts say the record is an indication of consumer and banking confidence, but it is also cause for concern because auto and student debt, unlike mortgage debt, are not tied to secure assets. Many consumers still face significant financial challenges; half a million Americans declared bankruptcy in 2016 and two-thirds live paycheck-to-paycheck, unable to weather unexpected expenses of $500 without borrowing or curtailing spending.
Nonprofit Quarterly (5/17/17)
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