The new statistic comes from a 2017 Bankrate study, which also revealed only 52% of Americans have emergency savings that exceed their outstanding credit card balances. Meanwhile, the average U.S. household owes $7,136 in credit card debt and an estimated 57% have less than $1,000 in the bank.
There are ways to break the cycle of debt and boost savings simultaneously. It starts by creating a budget. Without a budget, you will have no idea where your money is going each month and where you can cut corners. Downsizing your living space can free up several hundred dollars a month. But keep in mind, cutting back on leisure purchases, eating out and clothing can do the same.
Taking on a side-job to earn extra income is another way to pay down debt and boost savings. Of the 44 million Americans who currently have a second job for supplemental income, more than one-third bring home upwards of $500 a month as a result.
Getting out of the debt cycle begins with creating a realistic budget and getting a grasp on your current financial situation. There are specific ways you can deal with high interest credit card debt. If you are struggling with insurmountable debt, whether it is credit card debt, medical debt or student loan debt, consider sitting down with an experienced Miami bankruptcy attorney for a free consultation who can assess your financial situation in more detail and let you know if bankruptcy is right for you.
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As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.