How would you react if someone said you had $127,000 of debt you had to pay?
That’s a considerable amount of money. I think I’d faint on the spot. Either that or my blood pressure would be through the roof.
The US owes $14 trillion dollars. Crazy numbers, right? I don’t know about you but my brain has a hard time comprehending just how much a trillion dollars is but our friends at John Burns Consulting have broken it down this way:
The amount of the US debt is equivalent to each US household owing $127,000.
As you read through this latest report, you’ll see some overall scores that haven’t really changed much: Economic Growth, Leading Indicators, Affordability…they’re all scoring depressingly low grades.
But their advice?
At some point, the owners of U.S. Treasuries are likely to demand a higher return for the risk. When that happens, businesses and consumers that have long-term debt at low interest rates will be rewarded, which is one reason why we think now is a great time for renters to take on a mortgage and become homeowners. For those who rely on construction for a living, plan on building apartments. They will be in high demand by renters as well as investors.
