American consumer debt is sky high at $4 trillion
Debt Mountains to Climb
According to CBS, a new Federal Reserve reports that since 2013, there has been a $1 trillion increase in the amount of debt American are carrying.
Today, this can be broken down into an amazing $1.2 trillion in auto loans; almost $1.6 trillion student loans; and $1 trillion in consumer credit mostly from credit cards.
How to avoid getting into debt
Well it's easier said than done isn't it but the best way, according to many credit counsellors, is by not using credit cards or taking out loans in the first place.
Many people's life goals include buying a house and taking on unsecured debt, creates a problem in being able to secure mortgages especially if you have missed payments.
How to get out of debt
Getting into debt is easy but getting out of debt is a lot harder.
Many consumers sign up for multiple credit cards over the years and when money becomes a little tighter, daily necessities start to go onto the cards and build up.
In fact spending on credit cards is so common in the US that almost 70 million Americans carry a balance over month-to-month on their cards. No wonder the credit card companies want you to have their cards!
Ironically, as the jobs market has gotten better in 2018 and 2019 and incomes are growing, so do people's use of credit lines which is one reason why these numbers are so astoundingly large.
Struggling to make payments?
If you are struggling to make payments on your credit cards and other personal loans, a Debtko debt advisor can probably help you.
Our debt consultants are here to help you find a solution to your debt problems and will give you honest, straightforward advice on the best plan for you.
No debt situation is the same but if you are in genuine financial hardship, no matter what the reasons whether it's losing a job or going through a divorce, we are here to help.