1. The Average American Has Over $90,000 in Debt

According to recent studies, the average American carries a staggering $90,460 in debt, including mortgages, student loans, credit cards, and auto loans. This growing number highlights how reliant people have become on borrowing to sustain their lifestyles.

2. Credit Card Debt Can Take Decades to Pay Off

If you only make the minimum payment on a credit card with a balance of $5,000 at an 18% interest rate, it can take over 30 years to pay it off—assuming no additional charges. Interest compounds rapidly, making it crucial to pay more than the minimum balance whenever possible.

3. Your Share of the National Debt Is Growing Every Day

While the U.S. national debt exceeds $34 trillion, it directly affects individuals as well. Every American taxpayer’s share of this debt is around $100,000 and growing. This debt influences interest rates, inflation, and the overall economy, which can impact your personal finances in unexpected ways.



4. Student Loans Could Delay Your Dreams for Decades

Student loan debt has reached an all-time high of over $1.7 trillion in the U.S. For many borrowers, this means delaying major life milestones such as buying a home, starting a family, or even saving for retirement. The financial burden can last decades, impacting career choices and financial independence.

5. Medical Debt Is the Leading Cause of Bankruptcy

A shocking number of Americans—around 66.5% of all bankruptcies—are linked to medical debt. Even those with health insurance can face overwhelming bills due to high deductibles, co-pays, and unexpected medical expenses.

6. Payday Loans Have Interest Rates Over 400%

Payday loans, marketed as short-term relief, often trap borrowers in a vicious cycle of debt. With interest rates exceeding 400% APR in many cases, borrowers find themselves stuck paying fees that far exceed their original loan amounts.

7. Mortgage Debt Is at an All-Time High

With rising home prices and increasing borrowing, mortgage debt in the U.S. has exceeded $12 trillion. While owning a home can be a great investment, taking on excessive mortgage debt can lead to financial strain, especially if the housing market declines.

8. Auto Loans Are Becoming a Major Burden

Auto loan balances have reached over $1.5 trillion, with more Americans opting for longer loan terms (72 to 84 months) to afford rising car prices. These extended loans mean higher interest payments and greater financial risk if a borrower defaults.

9. Debt Affects Mental Health

Debt stress is a real issue, leading to anxiety, depression, and even physical health problems. Studies show that people struggling with significant debt are more likely to experience high stress levels, relationship problems, and lower overall well-being.

10. You Can Negotiate and Settle Your Debt

Many people don’t realize they have options when it comes to managing debt. Creditors often negotiate settlements, lower interest rates, or offer hardship programs to help struggling borrowers. Seeking professional guidance from a debt consultant can lead to better financial solutions.

Debt doesn’t have to control your life. By understanding these shocking facts, you can take steps to improve your financial situation. As a debt consultant, I, Sally Bernard, am here to help you navigate the complexities of debt and find solutions that work for you. If you're struggling with debt, seek advice and take control of your financial future today!