According to CNNMoney, the average American’s net worth has dropped nearly 40% since 2007, from $126,400 to $77,300 in 2010. This recession has wiped away 18 years of savings and investments, mostly in unrealized capital gains.
Most of the decline was brought about by the decline in housing values, and the families in the west and south were hit the hardest. To make matters worse, income levels have also fallen during this three-year period as much as 7.7%. Middle-income earning families were hardest hit.
The good news, if there is any, is that the number of families that carry debt is down, as credit card use is down. Lower interest rates help keep debt levels down, but the number of Americans who have fallen more than 60 days behind on debt payments still grew.
How has your family been affected? Let us know. You can read more of CNNMoney’s article at http://money.cnn.com/2012/06/11/news/economy/fed-family-net-worth/?source=linkedin