People may think they are alone when it comes to debt, but in reality, most people have debt. Whether it be credit card debt or medical bills. Most Americans are consistently trying to climb their mountain of debt.
If you feel the pressure of debt keep on reading to learn some interesting facts about debt that show you’re truly not alone.
1. Time to Pay Off Debt
You may ask yourself ” what is the average amount of debt?” The average American is typically holding around $10,000 in credit card debt. It seems like it wouldn’t be hard to pay off but when the average household is only bringing in around $50,000 a year, trying to pay off $10,000 is not an easy task.
Some people may argue why people put things on credit, but when you have a full household and there are other bills to pay, the focus is not on the credit cards.
For many people, they use their credit cards to buy essentials such as groceries and school supplies for their children.
When you apply for a credit card there is always an interest fee tacked on for the expense you put onto the card.
Depending on your credit score you can have an APR up to 30%. You may not think much of this number but if you are not paying off your credit balance monthly this amount grows.
APR accrues daily for the balance you have on your card. The formula is (amount currently on your card x (interest rate/365)). That amount is added for every day of the month.
If you have a low balance then its not a huge amount, but if you’re already behind on payments this can increase your debt.
3. More Debt Less Savings
Sadly most people struggle with actually building their savings because of their debt. This is because the money people could be putting into savings actually goes into paying their debt. As well as not understanding information about debt.
This leaves people without an emergency cushion, causing them to open more credit cards and loans to get by in their day to day routines. Although people would love to be saving their money they are unable to due to high credit card payments.
4. Student Loans
Student loans are a crushing debt for many people. When young adults go into college they get offered to take out loans but are not educated on how this will affect their future.
Usually, students will not pay back their loans while in college but once they graduate are forced to pay back their loans whether or not they obtained a well-paying job for their degree.
If this sounds familiar Check out these national debt relief program reviews to work on getting your debt in control.
Facts About Debt
We hope that these facts about debt open your eyes to the national debt crisis. Although debt can be scary you don’t need to face it alone. There are programs to help relieve the stress, so make sure you check these programs out.
The road to debt is a slippery one but with the right help and aid you can make it out.