- Total consumer debt in the U.S. is $12.73 trillion.
- The average American has $38,000 in personal debt.
- 40% of Americans with debt are spending up to half of their monthly income paying it back.
- The average monthly car loan payment in the U.S. is $530 and keeps going up year after year.
- Student loan debt in the U.S. has soared to $1.4 trillion.
- Two million student loan borrowers owe $100,000 or more.
For most of us, it was not a goal to accumulate such large amounts of debt. However, slowly over time, the debt grew until finally, it has become a huge burden that is robbing your future. When most of your income is going toward monthly debt payments it limits the amount of money you have to spend on other things.
Things like retirement. Northwestern Mutual’s 2019 Planning & Progress Study found that 15% of Americans have no retirement savings at all. Just 17% of respondents say they have between $1 and $74,999 earmarked for retirement, which falls well short of the recommended amounts.
Things like savings. Approximately 66% of Americans would struggle to pay for a $1,000 emergency. And when we don’t have the money for emergencies, it turns an inconvenience into a crisis and we have to go into debt to cover it.
But also things like the family trip you wanted to take or the gift you wanted to give a needy family member or the support you wanted to give that organization that is close to your heart.
As your debt grows, so does your monthly payments. This results in having less to spend on everything else which leads to stress, frustration, and anxiety.
Ready to make a change? As a financial coach, I help people get organized so they can really start understanding their money and start eliminating debt. If you want to talk about how I can help, schedule a 15-minute call and let’s set up a time to talk!
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