Harvard Professor studies cause of increasing debt load on Americans

It’s not what you think, according to some research done by Professor Elizabeth Warren of Harvard Law School. Echoing a study done by “The Center for American Progress” Professor Warren claims that flat wages and increasing costs for “major expenses” (such as health care and educational expenses) are the primary drivers behind a large increase in debt incurred by Americans.

Instead of adjusting their standard of living in the face of this squeeze, Americans have tried to maintain their lifestyle by borrowing, often against their homes. As she puts it: “The average American family is walking a high wire and hoping that there won’t be a high wind.”

Some stats:
–Wages have been flat since 2001
–Median mortgage debt more than doubled, to $96,000, between 1989 and 20o4.
–Education borrowing rose 127% between 1992 and 2004.
–Major expenses have risen 11.2% since 2001.

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