According to the 2018 Planning & Progress Study by Northwestern Mutual, the average U.S adult has about $38,000 in personal debt. This is not adding up additional debt from mortgage loans to pay off that Cincinnati home for sale. While loans and other debt can be useful for investing in your future, it will have to be paid off eventually, allowing you to build net worth. Oftentimes people find they simply can’t for one reason or another, which can result in being stuck in a debt cycle that feels impossible to get out of.
All that borrowing leads to more debt, and the interest that results can become a major monthly expense of its own, increasing debt even faster. Some end up taking out loans just to keep up with the minimum monthly payments or to pay off other loans. If you’re struggling in this seemingly never-ending cycle of debt, these tips can help you break out of it.