What would you be willing to give up to achieve financial freedom?
A recent survey conducted by OnePoll on behalf of Beyond Finance for National Financial Freedom Day found that many Americans are ready to make some big sacrifices to eliminate their debt, and it’s no surprise, given the rising debt ceiling. When examining average debt balances by age group, Gen Z carries $9,593, while millennials shoulder a considerably higher burden of $78,396.
The survey of 2,000 adults delves into Americans’ debt situation and their confidence in staying debt-free. Shockingly, the average person believes they can only maintain a debt-free status for eight-and-a-half weeks — less than three months — before accumulating new debt. Furthermore, only 38 percent of respondents feel “very confident” in their ability to remain out of debt.
So, what are the reasons behind this lack of confidence? The rising cost of living tops the list, with 54 percent of respondents citing it as a major factor. Unexpected expenses (46 percent), rising interest rates (29 percent), insufficient support from others (20 percent) and the pressure to keep up with others (16 percent) are also among the significant concerns.
For many, debt becomes a barrier to major life changes. The survey reveals that 33 percent of respondents have been unable to buy a home due to their debt, while 30 percent have had to delay purchasing a car.
Recognizing the need for support, around a third of respondents credit their family as the most helpful resource for managing their debt. Unfortunately, only 29 percent express “very confidence” in their ability to pay off their current debts on time, while 41 percent of respondents believe it will take them years to become debt-free.
Art Rainer, author of The Money Challenge, spoke with RELEVANT about how getting out of debt starts with taking one step at a time.
“My encouragement is to just start somewhere,” he says. “Whether it’s setting aside $1,500 for a minor emergency, or maybe just saving $25 a month, maybe even $10 a month. Do something. Start taking these steps. You’ll feel better about yourself because you’re actually doing something about your finances.”
