The average interest rate by debt type is important to know to utilize debt more efficiently. This article will look at the average interest rate for auto loans, credit cards, and mortgages.
We are an indebted nation thanks to our desire for more and our financial system’s ability to grant us more. When used appropriately, debt can help provide for a better life and make us wealthier. When used indiscriminately, however, debt can destroy our financial dreams.
Below is a list of the most indebted nations according to Trading Economics. Currently, America is at ~106% debt-to-GDP and historically ranged from a low of 31.7% to a high of 122%.
Whenever your country’s debt is greater than its GDP, it’s probably a good idea to encourage your politicians to exercise fiscal restraint lest they take your country to hell during the next financial crisis.
Notice how many of the most indebted countries such as Greece, Italy, and Portugal continue to struggle since the 2008-2009 financial crisis.
Let’s review the following types of consumer related debt and rank them from worst to best. We’ll also take a look at the latest interest rate by debt type.