From taking out a home loan to taking out an auto loan, loans and borrowing money is a key part of how many of us manage our finances in the United States today. It’s worth mentioning that the world has become more and more expensive, from the cost of living rises to salaries falling and stagnating and the overall job market having become less secure than ever before. Debt is all too common in the United States and will vary between different types of debt from person to person. For example, taking out a home loan when buying your home, be it your first home or your third home, is very common. In fact, it is far more common to take out a home loan than to not take out a home loan such as a credit union home loan or even looking into credit union credit cards. Taking out an auto loan is also incredibly common, as is opening up a line of credit.
Though a checking account and savings account are both hugely common types of accounts, it is becoming more and more common to have a credit card, even as a very young person. Not only will you be building up your credit over the course of time – if you use your credit card responsibly, of course, and pay off your card as much as possible and do not let your debt build up – you will open yourself up to being eligible for other, bigger loans in the future, such as a home loan or an automotive loan. In fact, credit cards have become so popular and so widespread in their use that as many as seventy percent of all people have at least one credit card, if not even more than one. This means that seven people out of every ten people has at least one line of credit open, ideal for building up your credit and making a name for yourself in the current financial world of the United States. In fact, credit cards, as well as debit cards, are so commonplace that more than half of all people believe that eventually cash will become obsolete, leaving us living in a cashless society where electronic payment such as through credit cards becomes the most commonplace and universally accepted form of payment. For people who will be eventually in the need of loans such as a home loan, this increased ability to build up your good credit is hugely important and influential in your life in the later years of it, not just in the present (though having a good credit rating in the present is also a plus and a perk, this cannot be discounted). With more than eighty percent of all millennials currently using credit cards, the widespread use of the credit card has already begun to change our society, moving it away from cash and into the realm of electronic payment.
If you are in need of a loan later on, it is likely that you will need to take out an auto loan. After all, cars and other such motor vehicles can be very much prohibitively expensive to purchase. Though the option to lease the car is offered at the vast majority of all car dealerships, many people would prefer to own their car. In such circumstances, taking out an auto loan is ideal. And auto loans are hugely common, with more than forty percent of all current car owners in the United States having at least some amount of money taken out on an auto loan of some type. On average, the vast majority of all car owners with loans have more than seventeen thousand dollars in debt on their loans that they have taken out to finance their loans.
The typical home loan is also very common in the United States, though it is likely that home loan rates will vary depending on the area of the country that you currently live in or are looking to move to. A home loan is often referred to as a mortgage, which is a common type of home loan.