Debt in America is a big problem. Many people are borrowing more money than they can pay back. One big issue is credit card debt. In 2023, 9% of credit card holders couldn't keep up with their payments. This means nearly 1 in 10 people are falling behind on their bills, which is called being “delinquent.”
Why Is This Happening?
People are using credit cards for everyday things, like groceries and gas. But credit cards have high interest rates, which means you end up paying more if you don’t pay off the balance every month. When people can’t keep up with the payments, the debt grows even bigger. See our piece on how credit cards sabotage your future for a deeper look at that cycle.
Sometimes, emergencies like car repairs or medical bills make people use their credit cards even more. If they don’t have savings, they have no choice but to borrow. This makes it hard to get out of debt.
What Can You Do?
If you have credit card debt, it’s important to take steps to manage it. Here are a few things you can do:
Pay more than the minimum
Try to pay as much as you can each month to lower your debt faster.
Create a budget
Track your spending and find areas where you can cut back.
Avoid new debt
Don’t use your credit card for things you can’t afford to pay off at the end of the month.
Small Steps to Big Financial Freedom
Debt can be overwhelming, but taking small steps can help you get back on track. Start by focusing on one debt at a time. Even if it feels slow, every payment you make brings you closer to financial freedom. It’s important to stay patient and consistent because paying off debt doesn’t happen overnight.
The key is to avoid adding more debt while you’re working on paying off what you already owe. Over time, your efforts will add up, and you’ll feel the relief of having less and less to pay each month. Remember, the goal isn’t just to get rid of debt—it’s to free up your money so you can start saving and building a better financial future.
Need Help? Check Out Our Free Guide to Get Out of Debt.
Financial Stability Roadmap
Personal finance may seem complicated and overwhelming. We have condensed all you need to know into an actionable step-by-step process to grow your net worth from struggling to financially stable. This guide is your GPS to a better destination, regardless of where you are on the journey.
