If you're like most Americans, you're carrying a substantial debt burden. According to various online sources, Americans are carrying nearly one trillion dollars worth of credit card debt. That's over three thousand dollars for every man, woman and child in the country that's owed to credit card companies.
It didn't used to be like this. Credit was something offered to a select few, and never in great amounts, until the baby boomers began running the show. And by that I mean voting Ronald Reagan into office. People might fancy him to have been "The Great Communicator," but in actuality he was really the great spendthrift. Under Reagan our national debt ballooned from thirty three point four percent of our gross domestic product to fifty five point nine percent. In raw numbers, our debt went from three hundred eight billion, nine hundred million dollars to nine hundred nine billion dollars. Old Ronnie was so busy taking his afternoon naps that he forgot to mind the checkbook.
So now America, and most Americans, needs good debt consolidation advice. And good debt consolidation advice is hard to come by, since people who offer debt consolidation advice tend to be selling something rather than working pro bono. So don't run out and buy the first line you see - instead, do some research, take your time, and avoid acting impulsively.
In fact, we'll make that step one: Take your time and do research. Chances are you've accrued your debt over a length of years, and it'll take years to undo the mess you've found yourself in now. Due diligence is what's called for, not rash impulse.
Step two is figuring out where, exactly, your debt is. Is it student loan debt? Is it a mortgage? Is it credit card debt? Identifying that will help you determine your next course of action, which is...
Step three: Pay off your high interest debts first. This means, most likely, credit card debt. For decades credit card companies have operated without restriction, have been allowed to hike interest rates at the drop of a hat, and have basically fleeced the American consumer. If you're carrying credit card debt, that's what you need to pay down first.
After that you can concentrate on other debt loads. Once you start taking control of your debt, you'll feel empowered and be able to advance your economic life with more confidence.