In the U.S., the middle class has been the driving force that stabilizes the economy. However, new statistics are showing the middle class failing in financial management and incurring additional debts. The mismanagement of debt is causing destabilization of the class. Debt management consultants provide clear answers for managing the misconceptions of citizens in the American middle class.
Taking On More Debt Annually
According to recent statistics, America’s middle class is taking on more debt annually than ever before. The statistics show how the middle class is failing as the country’s primary source of sustainable consumption. By taking on more debt, the middle class is unable to maintain their households without seeking government assistance and facing dire retirement prospects.
Living Outside Their Means
A primary reason the middle class is dwindling is their consumer-driven need to live beyond their means. Common choices are based on accumulating luxury items and less on saving for the future. The new gold standard is to impress others with a materialistic approach. Unfortunately, the trend is leading the middle class down a rabbit hole of debt which few escape.
The Effects of Increased Student Loan Debts
A new outcome of accumulating student loan debt is sending the middle class to bankruptcy court more often than not. The debts are associated with attempts to further their education as well as providing their young adults with a proper education. Unfortunately, the latest trends don’t include college funding sources that decrease the need for high-interest loans.
Mismanagement of Existing Debts
Members of the middle class are also experiencing financial difficulties due to an inability to manage existing debts. The errors in judgment prevent the consumers from purchasing new homes in the future. Due to their choices, the middle class is losing their creditworthiness at all-time record highs.
In the U.S., the middle class is suffering financially due to excessive volumes of debt. It is due to several factors that the class seems to be collapsing under the pressure of debt of their own making. Statistics show avoidable errors that lead to a need for better financial plans to eliminate debts quickly. Consumers within the middle class who want to learn more about the problems explained are encouraged to read more now.