How much debt is too much debt? Just ask Kanye…right?
How many of us have asked ourselves this question? Although I hold the title of the Young & Free Michigan Spokester, I myself don’t have everything together. I know, big surprise, right? I am the first to admit that I tend to get overwhelmed concerning finances, especially when it comes to facing the hard cold facts of debt.
Last week, I was sent an article from MarketWatch.com titled “1 in 4 Americans on the verge of financial ruin”. YIKES! The article went on to say that nearly one in four Americans have more credit card debt than they have savings and 29% of Americans don’t have any emergency savings!
So, how can we fix this? Be real with yourself and figure out exactly how much debt you are in. How much money do you owe and to whom do you owe it? I know this step is one of the hardest -- it’s almost like the weight of worry becomes a reality of debtors sitting in front of you. Trust me, it gets better.
The Dave Ramsey rule of thumb is to always have $1000 in an emergency savings account in the hopes that you won’t go further into debt due to unexpected expenses. Then, after setting a budget and cutting out any unnecessary expenses, take all additional income and pay off your smallest debt first.
Let’s break the statistics and be a generation that refuses to go through life with massive amounts of debt. Do you have any other tips to help get out of debt?
Keeping it Fresh, Young & Free,