Truth About Why Americans Are Drowning In Debt!!!

Truth About Why Americans Are Drowning In Debt!!!
#debt #studentloanforgiveness #studentdebt
Raise your hand if you have four or more credit cards, a car payment, a mortgage, or student loans.
Raise your hand if you're afraid to look at your credit card or student loan statements because you don't want to find out how much you owe.
Raise your hand if you believe it is impossible for you to ever be debt-free.
You are not alone if you raised your hand for any of these. Approximately 80% of Americans are in debt, and many of us don't know how to get out.
Continue reading to find out why so many of us are in debt and why it is so difficult to pay it off.
Leading Debt Sources
Home mortgages, car loans, student loans, and credit card debt are the four main sources of American debt. A little more than $9 trillion of that $14 trillion in debt can be attributed to mortgages. Another $1.3 trillion is derived from auto loans, which have been subject to low interest rates since 2008.
Student loans account for a record $1.48 trillion in consumer debt in the United States. This means that the average student loan borrower owes around $35,000 in student loans.
Finally, credit card debt accounts for the remaining $1 trillion in American debt, with the average consumer owing approximately $6,000 across four different credit cards.
Maintaining Appearances

So, why do we have so much debt that we don't know how to repay? One of the most important reasons is that we want to maintain appearances.
In a world where our every move is documented on Instagram, it's easy for your public image to take precedence over your actual financial situation.

Unwilling to Make a Sacrifice
It is difficult to get out of debt once you have it. It entails foregoing things you enjoy, such as vacations, trips to the movies or out to eat, a new outfit, or a new car.
It may be necessary to inform your children that they will be unable to participate in an extracurricular activity or that they will be unable to obtain the pet they so desperately desire due to financial constraints.
Many people are unwilling to make the necessary sacrifices to get out of debt. If you want to pay off your debt, you must cut something from your budget, which means discomfort and self-denial.
Many people find it easier to simply keep spending money they don't have and put off dealing with debt until later.
There is no light at the end of the tunnel.

Addiction to Stuff
The idea that we have to have certain items is another major fallacy in American spending habits. We require a new outfit for our job interview, a new kitchen appliance, a new toy for our child, and a new television set to host the Super Bowl party. We are addicted to things, and the truth is that it is destroying us.
Even if we experience a brief rush of joy when purchasing a new item, that rush quickly fades.
Then we're left with another item to find a home for, as well as the credit card charge for the new toy. We keep believing the lie that if we just have this one thing, we'll be happy, and it's increasing our debt.
Budgeting is not a top priority.
So, how do we stop frivolous spending and save enough money to pay off our debt? Of course, by sticking to a budget!
A budget tells us how much we have to spend on all of our true necessities, how much we have left over, and how we can best spend that money.

One of the most serious threats is impulse buying.
The impulse buying phenomenon is one of the most serious threats to a budget. We're standing in line at the grocery store when our child notices a candy bar or we notice an extra little doodad that we want.
Sometimes we have a bad day and decide to splurge on something we've been wanting to buy to make ourselves feel better.
These impulse purchases are one of the quickest ways to devastate a budget. Even small purchases can throw a budget off balance for a month or more, and large purchases can throw you off balance for a month or more.
If you want to pay off your debt, you must be able to resist impulse purchases and stick to only the items you truly require.

Keeping Credit Cards
When it comes to credit cards, they are one of the main reasons Americans are in debt. Aside from the ability to spend money we don't have, many of us believe there are other reasons to have credit cards.
We say they help us build credit and are useful to have on hand in case of a "rainy day."

College is Expensive
Of course, student loans are a major source of debt in the United States. The class of 2019 graduated with an average of $28,565 in student loans, a figure that has been steadily rising for years. It can be difficult to dig your way out of a hole when you're just starting out.
Many young Americans who are just starting out in the workforce are paying more for their student loans than they are for their housing. Debt repayment can take decades, and in the meantime, interest accumulates.

[peternorthrup]

Don't have kids. Marry a well educated hard working woman. I did. It's not about luck. It's about choices. There are plenty of women out there that are broke and with kids. Who wants to be broke there whole life? We both retired at 55.