As per the available statistics, about 80 percent of Americans are in debt, and many don’t know how to get out of it. Read on to learn more about why so many of us are in debt and why it’s so hard to pay that debt off.
Social Media Pressure
Social media is the modern photo gallery where people dump all their photos and videos – from all life aspects. It is the norm to document every move we make and post it on Instagram, among other platforms, from travel videos to family fun days, dining at high-end hotels, and more.
These posts unknowingly create unnecessary competition and pressure, pushing us to make travel plans and designer clothes outside our financial abilities. One would rather get into debt to keep up with the flashy social media lifestyles without worrying about the debts that come with such decisions. The only way to minimize debts among Americans is to stop the online competition, practice money management and begin living within our means.
Unwillingness to Sacrifice
Debts are the poison to our financial life. It is impossible to get out the moment you get in unless you are ready to sacrifice your favorites from the new outfit you intend to buy, a car, vacation, designer shoes, a movie, or a lunch date.
Sometimes, it requires your children to miss out on some extracurricular activities, toys, or pets to allow you to save and pay up the debt. Sadly, most Americans are not ready to sacrifice pleasures in their lives to get out of debt. Instead, they keep borrowing, which takes them deeper.
Impulse buying is one of the biggest enemies of budgeting and money management skills. Americans are not afraid of buying cheap and costly things outside their budget, which eventually results in huge and unnecessary debts. It is an American habit to go shopping on a bad day to feel better, without pre-budgeting.
It may sound ok, but impulse buying is the quickest way to wreck your budget and land you into deep, avoidable debts. It is time to train yourself and your loved ones to always adhere to the set budget and avoid unplanned purchases.
Keeping Multiple Credit Cards
According to the experts at www.bills.com credit cards are among the leading causes of debt among Americans. The secret to a healthy financial lifestyle is spending only the money you have. Sadly, it is impossible to stay within your means when credit cards are the easiest thing in your life, and everyone is using them without giving them any serious thoughts from family, friends, and colleagues.
Most people use these cards as a disguise for creating a solid credit score and history for “rainy days.” However, the outcome is the opposite – huge debts that take long periods and hard work to clear. It is time to think the other way – create a great saving and investment culture to avoid “rainy days” and invest in different forms of building good credit without heavily indulging in credit cards.
High Costs Of Attending College
Student loans are one of the biggest contributors to American debts. In 2019, for instance, the class left with an average of $28,565 in student loans, and the numbers kept rising over the years. Such debts are similar to starting in a deep hole; as others walk forward and develop their lives, you are forced to try getting out first before you join the rest – who may have possibly made huge steps at the time.
Student loans are the biggest worries for the youngest Americans in the entry-level workforce, and they take a long time to clear off the debts before moving to house purchases, among other basics. Sadly, the more these young people stay with the loans, the higher their interest.
The American debt is a reality we can’t run away from. It requires teamwork from individuals, families, and the government to fight this ugly financial enemy. It may take a long time, but we will get there someday with the right measures and equipping children with proper spending habits.