Student loan debt continues to rise into the stratosphere. This type of debt is creating a financial crisis for millions of Americans. When you have a ton of student loan debt, it forces you to change your spending habits. Yet, you still need to pay your bills on time. How are people doing it? Relying on credit more than ever before.
According to a new report from WalletHub, the amount of credit card debt held by Americans has hit the $1 trillion mark.
The amount of debt added in 2017 was astronomical, which totaled around $92 billion, pushing the total to the new record high. Housing, auto, and student loan debt have already gone over the trillion-dollar mark respectively. This means Americans are stacking debt upon debt.
If you’re struggling with student loan debt, Financial Helpers is here! We’d love to help you take care of this problem before it engulfs your whole life. Give us a call at:
Student Loan Debt Crisis
Alina Comoreanu, one of the researchers at WalletHub who helped create the report, believes this isn’t about consumers weakening financially, but pre-recession bad habits that continue to this day. When the economy is doing well, more chances are taken to obtain credit for large purchases.
The amount of credit card debt the average American family holds is at a record high of $8,600, which is higher than it was even at the peak of the recession. As long as they are paying off their student loan debt, they don’t mind stacking their debt to pay off at a later time.
The economy is showing major signs of improvement with high confidence in President Trump’s economic policies. This can be a good sign that consumers are confident in their ability to pay back the debt. The promised tax cuts also likely played a part in creating consumer confidence. Still, there’s a lot of concern and reasons to worry.
The student loan debt problem isn’t going away anytime soon.
The problem is, the debt is stacking up. The Federal Reserve reports Americans aren’t paying back their credit card debt. This will only escalate the same problems that caused the recession in the first place. Rising incidences of unpaid debt is a major concern for banking systems across the country.
Taking Care of Credit Card Debt is Easier than You Think
Right now, in the U.S., there are millions of people struggling with credit card debt. It starts off with the belief that you’ll be able to pay it back, but often, it doesn’t work out that way. As regret builds and the bills keep coming in, that forces a lot of people to rethink the way they handle their debt.
Deciding to take care of your student loan debt problem is a lot like going on a diet. You know you have a problem. But, the second you step on the scale and see the numbers, it creates a sense of hopelessness. It can be daunting to see the numbers and realize it will take years of hard work to get back in shape.
If this sounds like you, there is good news! Student loan debt relief is possible and you can get it off the books in as little as 1-2 years. There are options out there that will allow you to not just pay it back quickly, but even to pay less than what you currently owe. You have to know your options.
Call Financial Helpers today to learn what options you have for taking care of your student loan debt.