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The gluttony of American debt raises serious concerns

America is a nation known for creative innovation (e.g. Silicon Valley), freedom of speech, opportunity and prosperity. However, America is getting a bad reputation for its excellent way of spending “fake” money in the means of a small plastic card used to swipe purchases in the good faith that “real” money will be used to pay it back someday. It’s not surprising that we have broken a record with an astonishingly $1.02 trillion dollars owed to credit card agencies.

Here are a few eye opening facts about credit card debt currently in our nation:

  • Open-ended interest bearing accounts (mostly credit cards) substantially rose by $55.1 billion in 2017.
  • Student loan and vehicle debt (along with other types of non-revolving debt) reached $2.8 trillion dollars.
  • Credit card delinquencies are at 7.5 percent, an increase from 7 percent last year.

Caution for an improved economy

The amount of credit card debt currently in our nation is similar to the amount owed back in 2008 before the recession hit. However, the good news is that the income level of Americans is much higher than it was ten years ago. Although, the nation is on average garnering more in their wages than previously, it is still an area to watch out for in managing payments and avoiding the pitfall of collection agencies.

A false sense of financial security

An increase of economic opportunities and income tends to provide a false sense of financial security, leading to an increase of new credit lines and loans. The assumption of long-term security may be blinding many Americans from making healthy financial decisions based on the fragility of the future. You may consider living off half your income if you are single or living off of one income in a two income marriage to provide your household with a more stable financial buffer.

The jobs that provide us the lifestyle we desire can change at any moment. There could be a sudden health issue, death, divorce, corporate downsizing, not being as hirable in today’s market, and so much more. These unforeseeable circumstances can quickly put you in a financial bind.

Before considering bankruptcy

Before choosing a debt consolidation program or bankruptcy option, discuss your financial issues with your creditors. More often, they are interested in removing the open debt owed and can offer a settlement amount that can help you write off your existing debt. You can also find local community courses on budgeting, getting out of debt and other financial advice to help you manage your financial problems and overcome them.

Seeking out information from state and community agencies along with legal representatives, will give you a clear diagnosis of your current financial health and useful options to alleviate the impact of accumulated unpaid debt. After all, one of the greatest sources of peace of mind comes when your finances are truly secure.

What are your financial goals of 2018?


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