Debt To Cover Necessities
According to Experian, Americans have an average of over $6000 in credit card debt. Over 23% of Americans say that paying for basic necessities such as rent, utilities, and food contributes most to their credit card debt. Another 12% of Americans say that medical bills play a large portion to their overall debt as well. Day-to-day costs are continuing to rise, as it is now 30% more expensive to live now than it was 20 years ago. As housing, education, and child care costs continue to increase, more people will turn to credit cards to cover these expenses.
How We Use Credit Cards
Nearly 25% of the American population struggles to cover the costs of their basic necessities. Since 1996, college tuition has doubled and average housing costs have quadrupled. People all across America are living paycheck to paycheck due to the continuous rise of the cost of living. In addition to this, over 70% of Americans admit that they would be put into a difficult situation if their paychecks delayed for just one week. The average Americans does not even have $1000 saved up in a savings accout. Around 32% of the population say non-essential purchases is the main contributor to their credit card debt. This is not that much more compared to the 23% that use their credit cards for necessities. The interest that accrues on these balances is also higher than its ever been. Accrued interest is one of the largest factors contibuting to Americans struggling to pay off their debts. According to creditcards.com, the average APR for credit cards is currently at 17.73%. Most Americans feel as if they will never get out from under all of their credit cards.
Mediator Debt Solution’s Proven Strategy
Mediator Debt Solution’s has helped thousands reach their debt free goals in just a few short steps. MDS has even been able to get people debt free in as little as 12 months. Clients first meet with a specialist who creates a personalized relief plan based on their current debt situation. Clients immediately quit paying interest once a plans created. Instead, they begin depositing money into a special savings account. To get the overall amount owed reduced, the specialist negotiates with creditors on their clients behalf. Then, money from the savings account can used to pay off any reduced balances. MDS specialists dedicate themselves to standing by their clients until they are completely free of debt.