Getting out of debt is a resolution that many Americans attempt to tackle. In fact, 34 percent of Americans make getting out of debt a New Yearâ€™s resolution, according to our partners at Trusted Choice. With more than 80 percent of the nation struggling to get out of debt, itâ€™s easy to see why this resolution tops the list.
Being in debt can affect every facet of your life.
For instance, if you have a low credit score, and high debt, many insurance companies and lending agencies will consider you â€œhigh riskâ€; therefore, you may be paying more to get loans or cover your insurance premium costs. If you have a high credit score and a low debt ratio, you may qualify for lower premiums on your insurance, your car payments, and any loans you may need to take out from a bank.
Debt comes in many forms. 68 percent of the nation struggles with credit card debt, averaging $4,042 per cardholder, and 12 percent shoulder the burden of student loans at an average of $24,378 per borrower. 57 percent of the nation carries a mortgage debt averaging $55,975 per person. With those statistics, itâ€™s no surprise that getting out of debt is a top resolution.
Here are a few of the other top New Yearâ€™s resolutions:
â€¢ Losing Weight/Getting Healthy
â€¢ Getting Organized
â€¢ Spending More Time with Family
While these other resolutions may be common, getting out of debt can help all of these other resolutions come to fruition. Hereâ€™s a quick list of tips in order to start your debt-free journey:
1. Assess and Direct Your Income/Expenses.
2. Sell What You Can
3. Consolidate Your Debt
4. Cut the Credit Cards
Our partners at Trusted Choice have shared detailed steps for you to take for each of these debt-reducing steps.Â More Info about Cutting Your Debt >>