I came across this troubling new report by NerdWallet on the trend for American debt to soon surpass totals owed prior to the Great Recession.
What’s most disturbing is that credit card debt is continuing to climb and is almost at the peak reached (per person) in 2008.
Here’s a look at total US debt by individual
What could be contributing to the debt love affair?
With many American’s owing money on their homes – to the tune of $173k each – mortgage debt contributes to a great debt burden for American families. Much of their paycheck is devoted to keeping the roof over their heads.
The NerdWallet report also makes note of the fact that while American’s income has risen 28% over a 13-year period, expenses have outpaced that growth. Case in point: medical costs increased by 57% and food and beverage prices by 36% in that same period.
Added to that, there have been increased expenditures like cell phones, internet and streaming services to name a few that have become new expenses for the average American.
Still, we have yet to embrace a more minimalist lifestyle of living within our means and spending less than we take in.
What can be done?
It’s important to note there are no quick fixes when it comes to getting rid of debt. Many people find themselves in some really trying situations that are beyond their control (like family or medical issues).
We recommend a process for finding your way back to debt-freedom that (while not a quick-fix) is easy to follow and implement.
It involves:
- Finding purpose outside of yourself
- Accountability
- Reducing and increasing
- Saving and giving