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Is America in Debt More Ways Than One? Here’s How to Get Out of Debt Starting Today2018 Number One Debt Solution

Article: Its Official Most Americans are Currently In Debt by Maurie Backman (TMFBookNerd)

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Although we live in one of the richest countries in the world, we are currently $21 trillion dollars in debt. It is a well-know fact that America is run on debt. We are in financial debt as a result and when interviewed, most have ever considered the trickle-down financial affect the overall national economy could possibly have on us as individuals.

According to the Comet’s data in a recent article, Most Americans are Currently In Debt, Maurie Backman (February, 2018), there are many suffering debt, but the following groups are in overwhelming debt:

– 80.9% of baby boomers

– 79.9% of Gen Xers

– 81.5% of millennials

This debt primarily consists of living expenses such as mortgage(s), credit cards, automobiles and unfortunately medical debt.

According to the legal and banking industries, mortgage debt contributes to the majority of bankruptcy filings in the United States.

Statistically speaking, millennials have abused credit card debt the least, yielding an average of $4,868 in average credit card usage versus the $8,291 for Gen Xers and $7. 175 for baby boomers.

Regarding mortgages, it appears the younger generations have signed up for the highest mortgage amounts and although mortgage debt is considered the “better debt”, this has contributed to a constantly flowing stream of bankruptcy cases this year alone ( Motley Fool Newsletter (April, 2018)).

The purpose of this article is to assist in providing steps to get out of debt that are practical and simple. Here are a few things you can do right away and some tips that are assisting our clients:

– Get organized – budget calendar, spending logs, what’s affordable?

– Figure out what you owe, make a chart for repayment and consolidate debts

– Multiple credit cards can be rolled into a single card and interest rates negotiated (balance transfer)

– Use a low interest long-term repayment personal loan to consolidate multiple debts (student loan, auto, wedding loans). One payment is simpler to make than many.

– Refinance home and/or auto for reduced principal and interest to save money for the short and long-term. It may lower your monthly payments.

– Student loans can be recast and there are income-based repayment options and loan forgiveness plans, so call your provide to ask.

– Medical bill providers and credit card companies are willing to negotiate settlements, which could save your credit and create better repayment options. They will still get paid something vs. nothing.

– Steer clear of debt for a few years at least

– Create an 8 year emergency fund (for unplanned events)

 

Commit to cash and carry for awhile today. Cash is king and there is a freedom in not having or securing future debt burden. Taking action can not only relieve the debt and the stress too! Look for our future articles and click the link below for reference.