People often tell Americans that they live in the richest country on Earth. People tell us a lot about how well off this country is. Unfortunately, these statements hide the horrible truth about how money works in the United States. Stats show that it's getting much harder for Americans to pay their bills. In fact, they are having so much trouble paying their bills that the country's savings rate has dropped to its lowest level since 1933, when the Great Depression was at its worst. If these numbers don't scare you, you are either one of the few people who has their finances under control or you don't know what the financial situation is like in the U.S.
Several studies have shown that the average American has credit card debt of about $10,000 with an average interest rate of 14%. When you add this to the auto loans, mortgage loans, student loans, and other bills that most Americans have today, it's easy to see why so many people are in debt. If this doesn't even come close to describing you, congrats! It would be best if you kept it that way. If this sounds like your life, you need to make some changes right away if you want to be successful.
First, if you only pay the minimum on your credit cards each month and you owe $5,000 or more, it could take you up to 30 years to pay off the balance. If you only make the minimum payments and you owe more than $10,000, you may never be able to pay off your debt. Banks and the federal government haven't made things easier. In 2005, a law was passed that makes it harder for people to file for bankruptcy to get out of debt. Banks are now saying that they will double the minimum payment that people have to make each month on their credit cards.
If you haven't already, you could look into credit repair or debt consolidation services as a way to protect your family. If you have valuable personal items, you might need to think about selling them to pay off your debts. Even though this may not be the best choice, the other choice is much worse. The United States' debt situation keeps getting worse and worse. The best way to protect yourself is to pay off your debt as much as you can, and if you don't know what to do, use a debt consolidation service.
