Personal debt problems can arise from numerous circumstances, including health crises, theft, property damage, or loss of income. These situations are beyond the debtor’s control and arise through no fault of his or her own. But in other cases, it’s our own purchasing decisions that contribute to amassing a burdensome amount of debt, and it’s entirely avoidable.
Debt and the American way of life have become synonymous. From the 1850s when the Singer sewing machine company first introduced installment loans so that more homes could purchase its revolutionary appliance, a rising standard of living and debt have gone hand in hand.
Consumer debt surpassed $14 trillion in the beginning of 2019, and it’s a trend that’s showing little signs of slowing down. Home mortgages, student loans, credit cards, payday loans, home equity loans, personal loans, car loans — it seems there’s no shortage of ways to dig yourself into a financial hole.
Perhaps you’ve lost a job, faced an illness or have been delt a family crisis that emptied out your emergency fund. What are your next steps?
You’re eyeing center-hall colonials in your neighborhood and dreaming about the garden you want to plant in the backyard and all the holiday celebrations you’ll host. You’ve saved toward this goal and think you’re ready to pull the trigger. But the real question is: How much house can I afford?
Or is it?
Social Security’s financial cliff is coming closer into view. Experts project that the fund that pays for government retirement benefits through FICA taxes will be depleted within the next 15 years.
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