Unfortunately, debt is in nearly everyone's lives nowadays. Credit card companies and student loan providers make it easy for young Americans aged 18 or older to fall into life-altering debt situations. What is borrowed must be paid back. Sometimes the payback comes at getting even more credit (and debt) at a higher percentage rate.
The average American today owes about $225,000 in debt. Based on an analysis of Federal Reserve Statistics and other government data, the average US household credit card debt is $15,252; the average mortgage debt is $152,209; and the average student loan debt is $32,986. This is in a country where the median household income, according to the Census ACS survey, was $51,371 in 2012. (2013 Census ACS data will be released in September 2014.)
Because debt is so easy to accumulate, it is rarely ever one big purchase that gets people into these situations. Small increments of purchases, rolling interest payments, and needing more credit cards to help pay is detrimental.
However, accumulating these debts will make it harder in the long run to be approved for things such as a mortgage, vehicle, or even an apartment. Indebtedness directly impacts your credit score. A bad credit score might keep a landlord from offering you a place to rent, lead to higher interest rates when trying to qualify for a mortgage, and keep you from lowering your insurance rate on an auto loan.
Make every attempt necessary to start living debt-free. Identify the spending behaviors, pay down the debt and make an appointment for a FREE consultation today. We can help.