One of the main reasons Americans file for bankruptcy is revolving debt. Why do so many of us find ourselves drowning in debt? The answer seems very simple: overspending.
If you find yourself upset by your own stack of credit card bills and loan payment receipts, consider how you got there.
Do you spend more than you earn? 52% of Americans do. Of these, 21% regularly have monthly expenses that are in excess of their income. 13.3% of these individuals find themselves “adjusting” their next month’s spending in an effort to relieve the situation.
There are only 4 main sources of money: savings, credit cards, loans and delayed bill payments. Where do you get your money for monthly expenses? The average American spends $1.33 for every $1.00 they earn. 25% of Americans have more debt than they have savings. The average American’s spending increased approximately 30% over the last 25 years. The average work hours have only risen 10% in the last 25 years. Approximately 50% of Americans put a monthly budget in place. 21% of those who set up a monthly budget fail to meet the budget for 6+ months out of any given year. Only 44% of Americans understand that a credit score measures the probability that they will be able to pay back money borrowed.
Don’t be a statistic. Stop overspending before it’s too late. If it’s already too late and you are spiraling down while your debt continues to spiral up, call Westgate Law. Bankruptcy may be your only viable solution to get a fresh start.