216 National Financial Literacy Month - Day 9 - Debt & You

Americans have a lot of debt, mostly through the use of credit cards, mortgages, student loan debt, and more. Most of us use credits and owe money for some things we do not even use anymore. Sadly, we as a country of 340 million people owe too much.

The average U.S. household owes $7,281 on credit cards. When we add in a mortgage, car payments, and student loans it’s easy to see how you, like so many others, can get stuck in overwhelm with debt mode. In total, American consumers owe $11.83 trillion in debt, according to the Federal Reserve Bank of New York.

U.S. Consumer Debt Totals:

• Mortgage balances totaling $9.71 trillion
• Newly originated auto loans of $150 billion
• Cumulative student loan balances of $1.54 trillion

Total Debt Balance and Its Composition

Mortgage 68%

Student Loans 11%  $1.54 trillion

Auto Loans 9%   Newly originated auto loans $150 billion

Credit Cards 6%

Steps That Lead to Getting Out of Debt

1. One must understand how much they owe and how much they can afford to pay off each month.

2. Make a plan to focus on debt reduction.

3. Break the debt cycle, and start today.

4. Establish new habits.

5. Pay off your debts, and start saving money.

The profile above represents a small sample of the debts people have and it lets us all know we have a lot of work ahead of us to become debt-free. The reality is this, one must work harder to live within their means in this inflationary cycle we are in and carve out the best lifestyle we can for ourselves, while not trying to live like the Joneses. 

Learn about Paul Lawrence Vann's virtual Financial Fitness course, it is being offered at a 50% discount throughout the month of April, National Financial Literacy Month, here is the link:  https://bit.ly/3dbperG