Do You Think You Will Ever Get Out of Debt?

by Miranda Marquit · 0 comments

It can be difficult to feel good about your financial situation, and even the rest of your life, when you are in debt. Unfortunately, debt itself can be difficult to get rid of. If you have debt, you might have a hard time paying it off if your finances are strained. Concerns about a financial situation can bring you down, especially if you feel like you won’t get out of debt.

Recent research from CreditCards.com indicates that an increasing number of consumers are concerned that they will never be able to get out of debt. Indeed, a report finds that 18 percent of Americans with debt think that they won’t be able to get rid of it. The last time CreditCards.com asked about getting out of debt, in May 2013, only 9 percent responded that they would never be able to get out.

It’s clear that, even though the economic news is improving, there are still plenty of Americans still feel as though they can’t get a leg up when it comes to paying of their debt.

When Will You Be Debt Free?

Of course, there are those who are optimistic about getting out of debt. However, even so, many of them feel as though it will be a long time before they can get out of debt. On average, Americans expect to be debt free by the time they are 53, according to CreditCards.com. However, 43 percent of those in debt think that they will be 61 or older before they manage to be debt free.

This is an indication of how pervasive debt has become in our culture. Many of us expect to use debt as part of our lives, whether we get a loan for a car, or whether we use credit cards for other purchases. It can be easy to get into debt, but it isn’t as easy to get out of debt, since you have to pay interest. The interest charged to loans means that not every dollar of your payment goes toward reducing what you owe. You might make a payment of $100, but $15 of it might go toward interest, so your debt would only drop by $85. The higher your interest rate, the more you pay — and the less your debt is reduced by.

If you want to be debt free sooner, it’s important to make large payments so that you can reduce your debt faster. You might also want to see if there is a way to reduce your interest rate so you can pay off your debt faster.

Without a plan, it’s hard to pay off debt. One of the reasons that some consumers might feel as though they won’t be able to pay off their debts is due to a lack of planning. A plan that involves reducing your spending and earning more so that you can put more money toward your debt. With the right plan, there is no reason to be in debt forever. You might even be able to get out of debt sooner than you thought.

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