AlterNet / By Joshua Holland
How the Hell Do You Get Out of Debt If You're Not a CEO Raking in Millions?
Americans want to get out of debt, but the working majority are tapped out and having real problems making ends meet. June 27, 2011 |
Americans are doing everything they can to pay down their debts, but with prices rising and wages stagnating, they just can't dig themselves out of the red.
“Since early 2010 we’ve been seeing a consistent focus on cutting debt as part of an overall strategy to improve family finances and embrace frugal living,” said Scott Spiker, CEO of First Command Financial Services, Inc. According to a monthly survey of consumer attitudes conducted by his firm, "Eight out of 10 respondents said that paying down debt is currently their No. 1 priority.”
They're working hard – and sacrificing – to make that happen. According to the survey of 1,000 middle-class households, more than half or respondents say they're cutting back on everyday expenses, four out of 10 say they're “using all of their extra income” to pay down debt and 15 percent are even taking second jobs or working extra shifts to dig themselves out of the hole.
As the shock of the financial crash took hold, these efforts looked like they were paying off. According to Federal Reserve Data, American households lopped 4 percent off of their consumer debts in 2009. They kept it up through the first three quarters of 2010 – paying down consumer debt to the tune of about 3 more percent. ............(more)
The complete piece is at:
http://www.alternet.org/story/151448/how_the_hell_do_you_get_out_of_debt_if_youre_not_a_ceo_raking_in_millions