A 2017 survey on banking habits in the US revealed that 57% of American citizens have less than $1,000 in their personal savings accounts. The primary reason for such dismal figures is that Americans are struggling with debt leaving little room for savings.
For example, did you know that the average American between 45 to 54 years owes $134, 600 to various creditors?
Knowing the amount you owe others is the first step in dealing with debt.
- Start by making a list of creditors. Include the principal amount, the expected monthly payment, the due date, and the interest rate.
- Obtain your credit card report to make sure that you have not missed any institution that you owe money.
- Then employ the following strategies to rid yourself of this debt.
Consolidate Your Debt
Your list of creditors makes you aware of the difficulties involved in paying each of them within the same period. For example, they expect their payments at different times of the month or year. They also have different methods of compelling you to pay them. Additionally, these debts have different levels of interest attached to them.
Consequently, the best move after writing a list of creditors is consolidating those debts into one. Doing so would help you make consistent payments at specific periods giving you peace of mind.
More specifically, you will not have different people hassling you for their money in different ways and at different times. Instead, you will deal with one institution that will handle all your debts.
Use Your Additional Income Wisely
More than 4.2 million Americans had received a pay increase or bonus by January this year. For example, American Airlines dished out $1,000 to each of its workers costing the company $130 million. Disney and AT&T are other companies that gave bonuses to their employees. The question is what these employees are doing with this additional income.
For example, reducing their debt levels with these bonuses is an excellent idea. Reducing their most painful payment first is the ideal step to take. Doing so would help you reduce your stress levels in addition to improving your credit score. Use other sources of additional income in the same way. These sources include increased levels of profit, inheritances, and monetary gifts.
Americans are struggling under the weight of personal debt. Some of them are going bankrupt. Others are falling into a depressive state while a few of them are turning to drugs to forget their woes. Sharing this article with your loved ones on social media would help them find ways of dealing with this debt instead of succumbing to it. Share it today to help the people around you.
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- Jeffrey Ferriell, Edward J. Janger
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- Jeffrey T. Ferriell, Edward J. Janger
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