216 National Financial Literacy Month - Day 9 - Debt & You

Americans have a lot of debt, mostly through the use of credit
cards, mortgages, student loan debt, and more. Most of us use
credits and owe money for some things we do not even use anymore.
Sadly, we as a country of 340 million people owe too much.


The average U.S. household owes $7,281 on credit cards. When we
add in a mortgage, car payments, and student loans it’s easy to
see how you, like so many others, can get stuck in overwhelm with
debt mode. In total, American consumers owe $11.83 trillion in
debt, according to the Federal Reserve Bank of New York.


U.S. Consumer Debt Totals:


Mortgage balances totaling $9.71 trillion

Newly originated auto loans of $150 billion

Cumulative student loan balances of $1.54 trillion



Total Debt Balance and Its Composition


Mortgage 68%


Student Loans 11%  $1.54 trillion


Auto Loans 9%   Newly originated auto loans $150 billion


Credit Cards 6%


Steps That Lead to Getting Out of Debt


1. One must understand how much they owe and how much they can
afford to pay off each month.


2. Make a plan to focus on debt reduction.


3. Break the debt cycle, and start today.


4. Establish new habits.


5. Pay off your debts, and start saving money.


The profile above represents a small sample of the debts people
have and it lets us all know we have a lot of work ahead of us to
become debt-free. The reality is this, one must work harder to
live within their means in this inflationary cycle we are in and
carve out the best lifestyle we can for ourselves, while not
trying to live like the Joneses. 


Learn about Paul Lawrence Vann's virtual Financial Fitness
course, it is being offered at a 50% discount throughout the
month of April, National Financial Literacy Month, here is the
link:  https://bit.ly/3dbperG