Americans Starting the New Year with Record Debt: How to Get it Under Control
Americans Starting the New Year with Record Debt: How to Get it Under Control
As the new year begins, many Americans are facing a daunting reality: record debt. According to a recent report by MarketWatch, the average American household debt has reached an all-time high. But there is hope for those struggling to make ends meet.
The Problem
High-interest credit card debt and auto loans are major contributors to the rising debt levels. These types of debt can be particularly challenging to pay off, as the interest rates are often high and the monthly payments can be overwhelming.
The Solution
Fortunately, there are steps that can be taken to get debt under control. One of the most effective ways is to improve credit scores. By paying bills on time and keeping credit utilization low, individuals can improve their credit scores, making it easier to qualify for lower interest rates on loans and credit cards.
Another option is to refinance loans. By consolidating high-interest debt into a single, lower-interest loan, individuals can simplify their finances and save money on interest payments.
Tips for Getting Debt Under Control
- Pay bills on time to improve credit scores
- Keep credit utilization low to avoid high interest rates
- Refinance loans to consolidate high-interest debt
- Create a budget to track expenses and stay on top of finances
Conclusion
Getting debt under control requires discipline and patience, but it is possible. By following these tips and taking proactive steps, individuals can start the new year on a positive note and work towards a debt-free future.
Sources
[1] Americans are starting the new year with record debt. Here’s how they can get it under control.