Nearly three quarters of Americans are struggling with debt.
And the burden is significant in terms of both size and duration, according to a new study from insurer Northwestern Mutual.
The company found that, among Americans with debt, four in 10 (45%) spend up to half of their monthly income on debt repayment.
As this amount continues to grow, many feel as if they are drowning in debt.
Nearly half of Americans (47%) are carrying at least $25,000 in debt, with average debt of $37,000 excluding mortgage payments. Notably, more than one in 10 say their debt exceeds a staggering $100,000
More than one third said they will be in debt between six and 20 years while 14% expect to be in debt for the rest of their lives
When looking at sources of debt, mortgages, credit card bills, and personal educational loans topped the list.
A Credit Union Can Help You Get Out of Debt
There’s no magic bullet for how to get rid of debt. Sure, we’d all like to win the lottery, but the odds are stacked against that happening.
What we can do is manage our debt load better — and this is where your credit union can be a real help.
For starters, it’s helpful to lay all of your debt out on the table and create a comprehensive list of everything you need to repay.
Consumer debt creeps up on us, with revolving and installment credit being so available to us.
We open so many accounts, with so many different terms, that it’s hard to keep track of it all.
Sometimes, it’s easier to not keep track of it all. This is a game we play with ourselves.
Putting it on the table and sharing that knowledge with an experienced professional can help face the reality of our debt load and create a path to being debt-free.
Your credit union has not-for-profit options that put your interests first.
Work with your credit union to determine a budget, and to find ways of accelerating the repayment of your debt. One way to do this is to consolidate high interest credit card debt into one lower interest loan. Your CU has options for this.
It all starts with a visit to your credit union.