One of the biggest threats to average Americans’ economic future is uncontrollable debt obligations. The average American household owes close to $140,000 in debt, U.S. consumers are now $3 trillion in debt, and $1 trillion of those obligations consist of credit card bills.
Sadly, many frugal and responsible people find themselves overwhelmed with debt obligations. Often because of circumstances beyond their control such as job loss, pay cuts, bad health, business failure, divorce and just plain bad luck.
Many of these people end up using 25% or more of their income to pay off debt. This often leaves them with little money to pay for essentials like food, and no savings to deal with emergency expenses such as car repairs.