According to recent reports, an average household in the US carries a debt totaling to $133,568, which includes their largest debt — the mortgage. On average, credit card debt comes to about $15,983.
While the figures are staggering, consumerism is not entirely to blame, notes a reputable cash loan firm in Salt Lake City. Over the past 13 years, the cost of living has grown by 30 percent compared with a 28 percent growth in income.
In the past 15 years, the cost of medical care has grown by 57 percent, food by 36 percent and, housing by 32 percent. The surging expenses often cause people to get in over their head in debt to meet the basic needs. However, you can escape this debt trap and improve your finances.
1. Follow a budget
Most people roll their eyes at the mention of creating and following a budget. While the act of creating a budget is not difficult, it is the deep insights that come with the process that turn off people.
You must confront your financial demons, and face off with your limitation. While this might make you uncomfortable, it is worth every effort. It helps you to get a better grip on your finance.
2. Grow your income
If you’re constantly coming up short in your budget, it is time to consider ways to shore up your income. If you can pursue a salary rise successfully, go for it. Otherwise, there are other ways to generate extra income. You can put in more hours at work, pick a second job or moonlight in your area of expertise.
If your choices are limited, you can turn to the growing gig economy on the internet. If you’re lacking in the skills department, there are many free resources to help you gain and polish just about any skill you want. Just be sure to pick one that is in-demand and pays handsomely.
Despite the rising cost of living, you can lower the amount of debt you carry and improve your finances. In addition to creating a budget, you need to find ways to shore up your income.