Money Monday: Is Your Family More in Debt Than the Average Household?

BY: - 9 May '16 | Home

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We are a nation drowning in debt. According to a recent NerdWallet survey, the average U.S. household carries $130,922 in total debt, including student loans, automobile payments, mortgage debt and an incredible $15,762 in outstanding credit card debt.

While it would be easy to pin our excessive debt on reckless spending, can this completely explain the source of our crushing debt loads?

According to NerdWallet, we’re increasingly being forced to finance the daily cost of living with debt. For instance, the total cost of living has increased by 29 percent since 2003; this includes increases in food, housing, education and medical care costs. Yet, income has grown only by 26 percent in that same time period. Our wages have simply not kept up with the increasing costs of living.

So what can you do to tame the debt monster?

Ruthlessly tackle your most expensive debts, which are usually related to transportation, housing and credit cards.


Re-examine your transportation needs

According to a recent report from Experian Automotive, monthly automobile loan payments have reached an all-time high with the average American shelling out nearly $493 a month for their new vehicle. With a two-car family, the payments are twice as high.

To achieve financial stability, sometimes you must take extraordinary measures. Consider if your family really needs two cars. With insurance, maintenance and fuel costs added to the monthly car payment, you quickly see why the American Automobile Association estimates that the average person spends $9,641 per year to drive. Becoming a one car family could provide you with the financial boost that you need. The nearly $9,000 in yearly savings could go a long way to eliminate debt, build an emergency fund or save for retirement.

Take a closer look at your living situation

Could you refinance your mortgage to obtain a lower interest rate? For many couples, this is a great way to start saving a few hundred dollars each and every month.

Perhaps you are paying for more home than you can afford. Remember, your mortgage payment is just one part of the home ownership equation. Financial experts estimate that home ownership will set you back an additional 40 to 45 percent above mortgage costs as a result of utilities, maintenance, property taxes, home owners insurance and other expenses. Sometimes downsizing will not only reduce your mortgage but also reduce your associated home ownership expenses as well.

Aggressively tackle your high interest credit card debt

According to the NerdWallet, the average home with credit card debt owes $15,762 on their cards, which in turn costs them nearly $2,630 per year in interest charges. This is money that is simply being thrown out the window.

The first step to eliminating credit card debt is actually sitting down and calculating how much credit card debt you owe. Next, get serious about purging this parasitic debt from your life. Clean out your closets, basement and garage by selling your excess junk. CraigsList, Ebay, Amazon and even an old fashion garage sale or consignment shop are great avenues for raising money to pay down credit card debt.

Afterward, scrutinize all your bills to see how you can save money. Could you get a better deal on your cell phone plan or find a lower deal on your car insurance? Apply all the savings to your debt.

Finally, determine what financial fat you can your cut from your budget to help pay off your credit card debt. Consider eating out a couple times less per week. Eliminate your extra cable channels or visit the hair dresser one time less a month.

By developing a plan to tackle your debt, you can guarantee that you won’t suffer the fate of millions of Americans struggling to make ends meet.

BMWK, how much debt do you owe?

About the author

Alonzo Peters wrote 298 articles on this blog.

Alonzo Peters is founder of, a personal finance website dedicated to helping Black America achieve financial independence.


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FREE ONLINE TRAINING: How to Earn Six Figures for College!

BY: - 10 May '16 | Home

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BMWK family, on Wednesday May 11, 2016 we’re going to help so many families.

We’re hosting a FREE ONLINE TRAINING with expert and President of The Scholarship Leadership Institute, Major Nippy Betz.

Major Betz will be breaking down How to Earn Six Figures for College!

This is the perfect training if you or someone that you know has kids who are anywhere between 8th grade and current college students.

Yes, even current college students can earn money to help out with costs and on this training you’ll find out how.

Everything happens tomorrow, Wednesday May 11th at 9PM ET and it’s totally free. To register just click the link below to reserve your space.

Click here to register:

During the training you’ll learn:

1. How High School teens can pay for college in advance

2. How College Students can still earn big $$$ for college

3. How to get the most out of your teen in order to earn more scholarships!

There is an option to student loan debt!

Join our FREE Online Training tomorrow night to learn how you and your student can earn six figures for college without student loans.

P.S. Make sure you join a few minutes early. We’re expecting a full house and when we reach our limit no one else will be able to join.

About the author

Lamar Tyler wrote 2229 articles on this blog.

Lamar Tyler is co-creator He also is the co-producer of the films Happily Ever After: A Positive Image of Black Marriage, You Saved Me, Men Ain't Boys and Still Standing.


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