A recent survey that was made by Creditcards.com in December 2017 shows that 68 per cent of Americans do not know when they will repay their debts, if ever. 30 per cent of the people asked answered that they are not really sure when they will be able to pay their debts. And 38 per cent of people are not sure if they have a chance to pay them off. In particular, they are people, who have to repay payday loans and medical credits. These people believe they will have their debts until death. And people, who have credit card debts, loans for education, mortgages and loans for new cars think more positive about their debts.
Different generations and different attitudes
The study revealed that older people are more pessimistic when they think about their debt. It stated that 65 per cent of millennials (people from 18 to 36) have the most positive attitude to their debts. They say they do not know exactly when they will be ready for repayment.
- 68 per cent of people who belong to Generation X (adults of 37 – 52 years old) doubt whether they are able to pay their debts.
- 70 per cent of people from the generation of Baby Boomers (from 53 to 71) are very concerned about their chances to live without debts.
- Silent Generation (people older than 72 years old) is the most pessimistic about their debts. 83 per cent of people belonging to this generation believe they will never repay their debts.
In general, more than 30 million of interviewed Americans answered that they are too deep in a debt hole that they just cannot manage to go out of it. However, some people believe that they will repay their debts in nine years.
Total debt is still rising
Although, the results of the research show that Americans do not really believe in possibility to pay their debts off, still, their debts are getting higher. Now the total revolving debt that is usually carried on credit cards exceeds one trillion dollar. The sum of debts that includes credit card debts, loan for study, mortgages and auto credits is approaching four trillion dollars.
People who were interviewed for the research were asked to describe their feelings about having debts. 50 per cent of the people answered their attitude was absolutely negative. 45 per cent of the interviewed said they would not like to have any new credit and just 13 per cent of them did not mind having another loan.
How to manage your debts?
- Credit is not necessarily a bad thing, but people, who are going to take it, should know what consequences they might face. Taking a loan or a credit people should remember that anyway they will have to pay them off including an interest rate.
- Even if you belong to such kind of people, that does not believe they will ever go out of debts, you should not be paralyzed with this idea; you should not be so desperate. It is important to take small steps toward repayment, because even some small sums gradually can help you to reduce the amount of credit you have to pay back.
- Before taking any loan or a credit, the specialists recommend that you find out all the information about it, such as an interest rate, terms of repayment and the total sum of repayment including interest rate.
You can ask for lower interest rate for your credit card or change it for zero-interest credit card.
Also, if you have a loan you have to be sure that you will be able to pay it. If are sure about it, you have to plan your budget and state how much money you will have to pay every month.
It is almost impossible to live without owing someone, and if you have any debts, you should remember to pay them off; otherwise the sum might even double because of the interest rate. But you do not have to panic, you just have to plan your budget, make savings and bit by bit repay your debts.