As day-to-day costs skyrocket, many Americans are racking up debt, and they are finding it increasingly difficult to escape the debt cycle. We’re taking a closer look at some of the causes and effects of debt in America to help you gain a better understanding of where your money is going.
The average American has about $6,500 in credit card debt , and 23% of Americans in a survey conducted by CNBC say that the main culprits behind their debt are basic necessities such as rent, utilities, and groceries. Along with the rising costs of college tuition, real estate and child care, it can seem almost impossible to break the debt cycle.
Even more, a study by Pew Research Center recently found that today’s real average wage (accounting for inflation) has the same purchasing power that it did 40 years ago: “In real terms, average hourly earnings peaked more than 45 years ago: The $4.03-an-hour rate recorded in January 1973 had the same purchasing power that $23.68 would today.”
Financial struggle has caused many people to take on more work, or join the gig economy, to make ends meet. Nearly four in ten Americans have a side hustle to help them recuperate debts from loans, overdue bills, and credit cards.
According to a survey from Go Banking Rates, the majority of Americans (almost 70%) have less than $1,000 in savings, which leaves little room for financial support in the event of an emergency. Additionally, over 70% of adults said they would be in financial distress if their paycheck was delayed by a week. Living paycheck to paycheck makes it much harder to accomplish the American dream.
Gaining an understanding of where your money is going, and how much you are able to save each month, is a great way to start recovering from debt. Budgeting and planning ahead can help you set up for success – but what if there is a better way to get out of debt?
When you get on board with Debt Free Life, your Symmetry agent can help you set up a plan to start knocking out your debt in nine years or less without spending any additional money. This program uses a 200-year-old investment and savings strategy to eliminate your debts one by one. Even more, when you’re finished you will have built up retirement savings that could help you live the lifestyle you deserve.
Don’t delay your debt relief any longer – connect with a Symmetry Financial Group agent today!