The Number One Financial Concern in the U.S. Today, By Tom Monson
It isn’t a great life when you have Rising Debt
Here’s How to Tackle It
Money worries sit heavy on most folks’ minds. Today, the number one financial concern in the U.S. is debt—plain and simple. From credit cards to student loans, and mortgages to medical bills, debt has become a weight that many Americans carry. If you feel the pinch, you’re not alone. But here’s the good news: there are ways to take control.
Let’s start with the basics. Debt is money you owe to others, often with interest. It’s easy to fall into, especially when wages don’t keep up with the rising cost of living. According to the Federal Reserve, U.S. household debt has hit record levels, surpassing $17 trillion in 2023. For most people, this isn’t luxury spending—it’s essentials like housing, education, and healthcare.
So, how can you navigate this mountain of debt? It starts with a plan.
Understand Your Debt
First, get clear on what you owe. Make a list of every loan, credit card, or bill with an outstanding balance. Write down the amount owed, the interest rate, and the minimum payment. This step is simple but crucial. You can’t fix what you don’t fully understand.
Set Priorities
Not all debt is equal. High-interest debt, like credit cards, should be tackled first. These types of loans grow the fastest and cost you the most over time. Paying them down sooner can save you hundreds, even thousands, in the long run.
Create a Realistic Budget
Take a hard look at your income and spending. Identify areas where you can cut back. Small sacrifices—like eating out less or canceling unused subscriptions—can free up cash to pay down debt. Stick to your budget, and make paying off debt a top priority.
Consider the Avalanche or Snowball Method
Two common strategies can help you stay on track:
- Avalanche Method: Pay extra on the debt with the highest interest rate first while making minimum payments on the rest. Once the high-interest debt is gone, move to the next highest.
- Snowball Method: Pay off the smallest debt first for a quick win. Then, roll that payment into the next debt. This method builds momentum and keeps you motivated.
Negotiate and Seek Help
If payments feel impossible, don’t lose hope. Reach out to lenders and ask about lowering interest rates or creating a payment plan. Many companies will work with you if you show effort. Nonprofit credit counseling services can also guide you for free or at a low cost.
Stay Focused on the Goal
Paying off debt takes time, patience, and discipline. Celebrate small victories along the way—each payment brings you closer to financial freedom.
Don’t Let the Number One Financial Concern You
Debt doesn’t just hurt your wallet. It can impact your mental health, relationships, and future opportunities. The quicker you face it, the sooner you’ll regain control.
In the spirit of Robin Hood—someone you could say knew a thing or two about fairness—remember this: tackling debt isn’t just about numbers. It’s about reclaiming your power and building a better future. You’re not alone in this fight, and every step forward matters.
It’s time to take charge. Start small, stay focused, and watch the weight of debt begin to lift. Your financial freedom is worth the effort.
Read more about learning to control your finances in the Five Secrets to Gain Financial Security.
A FREE ONLINE CLASS FOR FINANCIAL EDUCATION IS AVAILABLE AT FIVEMONEYSECRETS.COM