Debt
This single syllable word with a simple definition winds up the reason for many devastating events in life: Bankruptcy, divorce, depression. So whether you’re single or married, young or old, educated or not, you probably have some lingering fear of what debt might be looming over you. And for very good reason.
What’s that reason, you might ask?
Although this word is very easy to comprehend, it seems that no one truly understands the overall concept of debt. And if you can’t understand it, how can you be expected to protect yourself from it?
The Reality
Many people in America today are struggling to pay for things. Most live paycheck to paycheck, and so often, many of us don’t even have enough money to cover groceries at the end of the month. So the choice at the end of the month becomes food or rent. And whether or not you are in that position now doesn’t mean you can’t be in that position in the future. Many unexpected situations in life rear their ugly heads and leave even the most responsible person devastated. The passing of a loved one, the failure of a business venture, or one lousy credit card decision can ruin a person’s finances. These situations could be right around the corner at any moment, and the most financially stable person could be left racking up a fair amount of debt just because they weren’t protected.
According to Average American Debt, personal debt is at an all-time high at $14.96 trillion. The average household is $158,209 in debt.
It’s common knowledge that the market crash in 2008 caused a lot of financial burden across the nation. Fourteen years later, most of us are still facing the harsh aftermath of that burden. According to Investopedia, “Members of Generation X owe a staggering $140,643, followed by Baby Boomers ($97,290) and Millennials ($87,448).” Millennials may have a slight advantage because many were too young to make important financial decisions. Unfortunately, they see the lasting effects as they start making those big decisions now. Even the younger generation is only accumulating more and more debt.
And it just keeps getting worse.
If you find an article about debt from 2018, 2019, 2020, and 2021, each of them will say, nearly word for word, “Personal debt is at an all-time high this year.” If our debt is only getting steeper and steeper each year, where does that leave us?
Is There Hope?
Are We Doomed?
So what does all this debt mean? Does it mean the nation is in serious trouble? Not necessarily. The fact of the matter is debt doesn’t have to be harmful.
Look at your finances. You probably have a fair amount of debt already in the form of student loans, auto loans, or credit cards. You can leverage your student loans for an education that hopefully results in a better-paying job. Many of us need a car to get to work. We’re encouraged to obtain credit cards and create debt for ourselves. Why? Because handling debt responsibly shows you can manage money.
That’s right. Debt doesn’t necessarily have to be a bad thing. The ability to have debt has increased America’s buying power. So don’t feel bad if you have a little bit of debt or even a lot of debt. We are taught to accumulate various forms for various reasons. What isn’t always taught is how far is too far and how to get out of it once you have hit that point.
You must learn how to protect yourself from debt, good, bad, or unexpected. Just because you don’t currently have debt does not mean you do not need to protect yourself from it. It’s never too late to start protecting yourself now, even if you think you are too far in. Even if you feel like you don’t see the light at the end of the tunnel, learning tips and tricks and good practices and putting them into good use will create that light you’re looking for. Never give up.
What Drives Us
Our Mission
The reality is that most Americans today are facing debt. Whether the situation is dire or not, the scary part is that few of us know how to protect ourselves from debt because we were never taught in school. Protect Against Debt is here to bring some light to those never-taught-topics and ease the fear of the unknown.
At Last!
Welcome To Financial Stability
The world seems to be under the misconception that debt comes from poor financial habits. As a result, many people in debt are unfairly labeled as irresponsible. Many indeed have debt because they were irresponsible. On the other hand, perfectly responsible money-holders often find themselves in unexpected situations where they are saddled with debt.
Whether you find yourself facing any of the situations listed above, or you just happen to be meandering through the internet and stumble on our blog, it’s never a bad idea to arm yourself with the knowledge we share concerning debt. You can save yourself from a lot of trouble going forward. And that’s precisely why we’re here – so we can help you protect yourself against debt.
Our blog aims to cover a variety of topics. We will arm you with the knowledge to navigate good debt vs. bad debt, protect your loved ones from inherited debt, provide tips on managing your credit card debt, and plenty more. Our content will give light to your journey to financial freedom, a debt-free lifestyle, and the knowledge to stay that way. We aim to provide our readers with financial literacy that they can carry with them through the big decisions in life and the unexpected twists life throws at them.
So, to answer the question, “Why should I read your blog?” I’ll take you back to one of the first statements I made: If you can’t understand debt, you can’t be expected to protect yourself from it. Our website covers various topics surrounding debt to help our readers understand the concept and, simultaneously, learn how to defend themselves against it.
So join us in this journey as we discover a way to live outside of the crushing weight of debt.