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Why are Americans in Debt?
by Tena Moore

American debt is on the rise. Larger homes, larger car and frivolous spending can be counted as major reasons for growing debt. If you find yourself in this situation, it is best to consider your options.

Debt has become a way of life for many Americans. If you have good credit, and everyone begins their financial path with a clean credit report, it is effortless to obtain credit cards, loans, mortgages and a large debt to carry that you didn’t intend for yourself.

Why are so many Americans in debt? The ultimate reason is irresponsibility and a love for spending. It appears that we believe more money is easily obtained, because by all practical means, it is. By the time we can no longer obtain more, our financial reports are in ruins and we don’t know how to begin to fix our messy trail of unpaid bills and late payments.

The nation’s rate of homeownership is on the rise, and the size of homes is on the rise as well. The current American mantras seem to be: “Bigger is Better” and “More is Magnificent”! Larger cars, larger homes and more stuff to fill the homes are leading causes of debt. There are more first time homebuyers, while attractive incentives and tax deductions make a mortgage the ‘easy’ choice for many. Mortgage rates are low and many are finding that a rising debt allows them the luxury of an enjoyable lifestyle. Yet this same enjoyable lifestyle can become a burden if debt is climbing beyond control.

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Rising debt also means rising stress. The average American has collected at least a few thousand dollars in debt. Flashy credit cards and attractive incentives and rewards, coupled with effective marketing plans, are an alluring reason to obtain an advance on money with a promise to oneself that the debt will be repaid and they will stay in good standing.

If you find that you are among the many that are facing a rising debt, there are many options available to you. Credit Counseling, Debt Consolidation, Loans and Bankruptcy all exist to help you get a handle on your current financial situation. Before attempting any methods of organized debt recovery, remember that you are responsible for your current circumstances and in all probability, you can take matters into your own hands to relieve the financial debt that you have created.

Obtaining an updated copy of your credit report, and contacting all of your debtors and explaining your current situation can remedy most financial worries. Communication between you and your debtors can oftentimes allow for a viable solution, without outside assistance.

If you find yourself between a card and hard place, and you’re not able to get a handle on the growing interest rates or pay your monthly payments, it may be time to consider your options.

Consolidate your debt and lower your monthly payments now >>

* Debt Basics is not a lender or broker. We provide information and research on debt help and debt consolidation. Product and service offerings differ by state.