7 The State of American Finances
American families are facing the challenges that come with starting a family and raising children. However, they are also trying to figure out how to pay off their student loans, improve their credit, and deal with unforeseen dangers such as data breaches and new technology leaving them vulnerable to possible identity theft.
Education debt increased substantially between 2010 and 2015. Paying for college continues to be a top concern among adults already in the workforce as they attempt to pay off large student loans and also pay for their children’s education.
families with education debt
Americans have at least one outstanding student loan
Only 48 percent of parents are saving for college.
Credit scores are an important part of our financial health and directly affect our ability to secure financing for personal or business purposes. A large number of consumers don’t understand their credit score or the factors that determine it.
- Two-fifths are unaware that credit card issuers and mortgage lenders use credit scores to make a decision about their credit availability and pricing.
- Two-fifths incorrectly believe that demographic information such as age and marital status are used to calculate credit scores.
- Between one-quarter and one-third don’t know that lenders are required to tell borrowers the credit score used to determine whether or not they qualify for a loan.