borrowing even more. They owe so much money, they don’t even know the exact total – and they’re afraid to figure it out... They know it’s at least $600,000. That includes two mortgages on their house, totaling $360,000 (and zero equity in the house)... $60,000 in credit-card bills spread over 10 to 11 cards (eight of which are maxed out)... $18,000 in a private loan... and around $140,000 in student loans (which they’re not paying because they’ve declared hardship status).
Most people would call Tom and Kate “rich”... They’re in their 40s and live in a Northeast suburb with their three kids. They’ve been married 20 years and both hold graduate degrees and work in the insurance industry. They’re in the top 15% of U.S. households, bringing home a combined $160,000 per year...
Tom and Kate are also deeply in debt, spending everything they make and
American Consequences 65 American Consequences 65
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