Are you having a debt that is biting hard? Are you having trouble overcoming the situation? You are not alone since many Americans are grappling with a similar situation. A survey taken in 2018 had their personal debt exceeding $38,000, but this figure doesn’t include the mortgage loan balances, the Northwestern Mutual noted. The report further noted that an average American was twice likely to owe lenders up to $25,000 higher than their savings.
There are many families that are facing the debt crisis. Statistics showed that a paltry 23 percent of Americans did not carry any debt during 2018. With many people suffering the sweltering heat of too much debt, it is without a doubt that many Americans say that top on their list of goals is to reduce their debt. However, not everyone has the ability and optimism to clear their debt. The survey shows that about 20 percent reported that they are likely to owe lenders for as long as they are alive.
Whether you owe a lot or less than an average debt on credit cards, mortgage or consumer debt, the situation can have adverse effects on your financial status. This is because debt can have far-reaching implications on your life. If you are one of the millions of Americans owing a lot of money, it is wise to understand ways you can use to get through the situation so you can breakthrough.
Why are Many Americans in Debt?
Numerous factors are responsible for the high debt level in American. Some of the leading factors include high housing costs, healthcare, high tuition, which has left millions of graduates in debt. What this means is that individuals will need to stretch beyond their basic needs, they are likely to have challenges getting out of debt. The other common factor is that many people are not allocating enough money towards debt repayment. The survey by Nationwide indicated that borrowers in America set aside an amount to debt repayment that was equal or less than their discretionary spending on luxuries. While it is fair to set aside some money on fun and other basic needs, allocating so much on such items may not be necessary especially if you have credit card debt.
Perhaps the fact that many Americans are opting for expensive cars than ever has meant that borrowing has increased significantly above the average income per person. Allocating thousands on repaying a car loan or saving towards fun and luxuries will mean going into more debt to meet your desires.
How Pinnacle Lending Can Help You Get Out of Debt?
Having talked about the reason for a high student, mortgage and consumer debts in America, it is now important to understand what ways Pinnacle Lending can help you navigate the whole situation.
Structuring a Payoff Plan: Financial experts at Pinnacle Lending will help you commit to a repayment plan that makes financial sense to both yourself and the lender.
Understand which Loans to Payoff First: Oftentimes, many people do not know which loans to prioritize. Understanding which payoff plan works best can be the only way of getting your financial situation to order. To help you do this, Pinnacle Lending will crunch the numbers and help you decide which makes sense to pay off. Usually, mortgage and student loans carry the least interest which may still be tax-deductible. Therefore, it may not be necessary to make such payments ahead of the rest of loan types such as credit cards, consumer loans.
Refinancing: for people who have high-interest debt, taking a new loan that comes with a lower interest rate ton payoff high-interest rates would be the best option.
If you have any need regarding debt payment, it is possible to contact experts at Pinnacle Lending to help you overcome the situation.