US People Took $1 Trillion New Debt in The Year 2021
USA people borrowed new loan of $1 trillion in the year 2021 itself to purchase car, house, gadgets etc. As per a report, this is highest after the year 2008-09’s financial crisis. The report indicates that the fund flow in the market has decreased drastically due to the pandemic and people has become bound to go for new debt to fulfil their dreams.
As per USA Federal Bank, in 2007 it was highest and the amount of debt was $1.06trillion. Since 2007, the amount has increased cumulatively; however, it wasn’t such high in any single year.
Even during the recession, people paid their EMIs on time and spent less to keep their budget in control. But, breaking the pattern, they spent a lot during the last year by taking debts from banks or credit card.
As per financial experts, the increase of price also is a prime reason behind people has become compelled to borrow loans. As per the top builders, the house price has increased more than 21% in the last year making them out of reach for the people and thus people became more dependent on bank loans.
Another sub-reason behind this, as per experts, due to the massive effect of the pandemic in the cities, people shifted their residence to suburbs by purchasing new home which caused a sharp price hike of the real estate industry.