Debt is difficult for many Michigan residents to talk about because there is often a negative stigma and consumers are unsure of how much debt is “appropriate” for them to have. Many feel that they have ended up in debt because their spending is out of control or because they are bad with money, but consumers should not feel a sense of failure when they find themselves in over their head.
Credit.com cites the Pew Charitable Trusts in stating that close to 80% of Americans are in debt and the median debt is over $50,000. Most debts were high because of a mortgage, but many of those studied had high unpaid credit card balances. These statistics show that while debt can be an isolating problem, consumers should never feel alone as they are in good company.
Debt is often the result of things that happen to the consumer or the environment around them. Many end up in debt because of student loans, medical expenses or unemployment and those are often outside of the spender’s control. Determining the cause of debt is an important step to moving past it.
NerdWallet encourages consumers to act to remove guilt and shame they feel about their debt. Studies have found that shame about debt can be removed if the consumer determines where their beliefs about finances come from. In questioning those beliefs, many can put the embarrassment they feel behind them.
Consumers should realize that debt is temporary. No matter how large or small, there are always options when it comes to discharging things they cannot pay for. Filing for bankruptcy is just one way that spenders can obtain a fresh financial start.