More and more Americans are having a tough time getting a handle on their debt.
According to a Harris Poll survey, 17% of Americans have difficulty making monthly debt payments.
Kimberly Palmer, a personal finance expert at NerdWallet, says, “17% of Americans say that they are struggling to make those payments. And it’s actually a lot harder for younger people. So millennials are having the hardest time, with 26% of millennials saying they can’t make those payments.”
Palmer adds that more people are spending more of their income on housing and essential needs.
“And I think where we’re seeing it come to fruition is the fact that interest rates have been so high. It’s just been unsustainable. And so people really get to the point where they say, hey, I cannot make these debt payments while still buying my essentials like food and housing, which of course you need to prioritize those essentials above all else,” said Palmer.
What also may be shaping these figures - are the new ways consumers can end up in debt.
Palmer says, “A lot of the new forms of financing like buy now, pay later. There’s not even a credit check before you take that out. And so what that means is that people can really get into trouble by overextending themselves, taking on more debt than their budget can reasonably handle. And it can easily snowball out of control.”
To get your finances under control, do not be afraid to reach out to a certified credit counselor.
Palmer advises, “So picking a plan, sticking to it, making extra payments where you can. Another tool that can be helpful is consolidating your debt onto a personal loan or a credit card that offers a lower interest rate. Or some way you can get through this difficult period and you can get to a place where you feel in control again.”
The best place to find a credit counselor for your situation is the National Foundation for Credit Counseling at NFCC.org.