Approach debt from a rounded perspective
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Debt is a growing concern among Americans. In fact, it recently hit record highs of over $ 14 trillion. Then, it jumped almost 8% more this year according to reports released by the financial sector in February. For most families, growing debt is a matter of struggling to cope with living expenses more than making reckless purchasing decisions. The cost of living is increasing and household incomes remain essentially the same or even decrease. Of course, the job losses and reduced hours caused by the now infamous pandemic did not improve the situation.
Explore the size of the US debt
According to the latest studies, the average American family has accumulated over $ 90,000 in debt today. This varies slightly by age group, with those 40 to 55 typically carrying the most debt and young adults up to 23 having yet to reach the national average. Yet any large debt can be overwhelming, especially if repayment seems impossible. Although you can find out more and ask for help national debt relief, we are going to discuss some of the main points related to debt to consider right now.
Understanding some of the problems debt can cause
Research indicates that overwhelming debt and other types of financial hardship can cause a range of problems for those affected. On the one hand, financial worries are known to lead to anxiety and depression as well as other mental health issues. Debt is also known to keep people from sleeping at night, which further increases the risk of mental and emotional problems.
The stress of financial problems and the resulting insomnia can also lead to a long list of physical health problems, such as fatigue, decreased immunity, high blood pressure, heart disease and migraines, to name a few. To make matters worse, those struggling with debt often sacrifice health care just to make ends meet. In short, their debt not only causes health problems, but denies them any help for their medical problems.
Face the problems
You will find that there are several methods to deal with debt. We will discuss common financial options shortly. First of all, however, it’s important to understand some of the ways to deal with the physical and emotional effects of financial worries. One of the first and most effective steps you can take is to be proactive.
Sit down and figure out how much and what types of debt you have. Many people think it would be counterproductive in relieving financial stress anxiety, but the opposite is actually true. Knowing what you’re dealing with makes it all seem a little less overwhelming. This is the start of the process.
- Eliminate unnecessary expenses. From there, you can take a look at some of the unnecessary expenses you’re making and start eliminating them from your budget. Some common examples are often eating out, paying for more cable or phone service than you need, and buying brand names at the supermarket rather than cheaper store brands. You might be surprised at the difference these small steps can make.
- Find the money hidden in your life. Most people have unexpected additional sources of income around their home. Maybe you have old jewelry that you just don’t need or need. Maybe you have a few handbags or high-end pairs of shoes that collect dust in the closet. You may even have precious old coins that have no sentimental value to you. All of these items can be sold if you find the right buyer. You can post them on eBay, Facebook Marketplace, or other websites to make them visible to potential buyers.
- Stop worrying. It’s easier said than done; there is no doubt about it. However, you must remember that you are not alone. At least 80% of American families are in debt, so you are the rule rather than the exception. Families are constantly struggling financially and they are surviving one day at a time. You can do the same.
These are simple but effective solutions to deal with the stress of debt. They won’t immediately eliminate your debt, but they will help reduce the risk of anxiety, depression, and other problems. Plus, just being proactive will make you feel a lot more empowered.
Review of potential financial solutions
Now, we can move on to the more in-depth debt relief options that are available. The next step in dealing with debt is to seek expert help. They can walk you through the options and help you determine which one is best for your situation.
- Debt consolidation. Debt consolidation involves taking out a loan to pay off unsecured debt, such as credit cards. This option is useful if you can get a loan with a lower interest rate than your existing unsecured debt. By using this loan to pay off some of your existing debts, you will reduce several monthly payments to just one and hopefully eliminate a lot of interest in the process.
- Debt settlement. In some cases, creditors are willing to pay off part of what creditors owe them rather than demanding the full balance and risking not being paid at all. This is what happens with a debt settlement program. A debt relief company will first review your debts and finances with you. If you can reasonably afford to pay off some of your existing debt in monthly installments, the debt relief company will negotiate with the creditors to create a debt settlement plan. Then you will make monthly payments until the agreed amount is repaid. The rest of the balance will essentially disappear.
- Debt management. Debt management can be described as consolidating and settling debt in one process. Debt relief specialists negotiate with creditors to reduce the amount you owe them and take out a consolidation loan on your behalf. Then, you will make monthly payments into an account dedicated specifically to paying off your debts, and the money will be distributed among your creditors.
Different types of bankruptcy are also an option, but they are usually used as a last resort. Not all of these solutions are suitable for all situations. Still, there’s a good chance one of them is right for you.
All things Considered
Most Americans today are in debt and the problem will only grow in the future. If you are in the majority, you are not alone and you have options. Start being proactive by taking a few small steps to calm yourself down. Then turn to the professionals for help to finally eliminate the debt you are dealing with.
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