Overall American household debt increased in every loan category during the fourth quarter of 2016, according to NerdWallet research. For households carrying any type of debt, balances increased by 1.83%, or more than $2,000 per household. Every type of debt tracked rose by more than 1%, but the most significant increase was credit card debt, which increased 4.28%, or almost $700 per household.
Average balances for households with each type of debt:
|Q3 2016||Q4 2016||Change|
|Any type of debt||$132,529||$134,643||+1.60%|
“As the growth in price inflation continues to outpace growth in wages, increasing national debt levels are not a surprise,” says Sean McQuay, NerdWallet’s credit and banking expert. “But that’s not an excuse. Individual households need to do what they can to bring their expenses in line with their income. Short-term sacrifices can mean future financial freedom.”