Average Household Debt in NY nearly $54,000

ROCHESTER, N.Y. – The average household debt in New York is now nearly $54,000 according to a new report by NYS Comptroller Tom DiNapoli.

The report shows student loan and credit card debt per capita were well above the national average, with student loan balances 335% higher than they were in 2003.  New Yorkers have a debt ratio of 57% compared to 73% for the United States as a whole. However, DiNapoli’s report found per capita debt in New York differs in notable ways from the national profile: mortgages and auto loan debt are lower, while credit card and student loan debt are higher.

“The bottom line is as we enter this phase with the economy slowing down the concern is that people are going to have to resort to borrowing more than they have in the last couple of years, making it a worse situation, Comptroller DiNapoli told News10NBC Investigative Reporter Jennifer Lewke on Friday, “at the same time interest rates are going up and we don’t do enough to empower consumers with information about financial resources if they do get in trouble.”

The White Houses’ plan to forgive up to $20,000 in student loan debt for some borrowers was originally projected to help an estimated 2.3 million New Yorkers, “they are still rolling that out so, we’ll have to see what happens, but given the debt burden in New York State on student loans, anything that could help that will be welcome,” DiNapoli says.

On Friday, the White House announced borrowers with federal student loans that are guaranteed by the government, but held by private lenders, will now be excluded from receiving debt relief and further changes to the program could be on the horizon.