‘Survival Debt’ Is on the Rise: 3 Smart Ways To Stay Afloat

Core Insights - Rising prices are leading to "survival debt," with 48% of workers borrowing money for essentials like groceries and utilities, 71% carrying credit card balances, and 21% making only minimum payments [1] - 22% of individuals have postponed retirement savings to manage current financial pressures [1] Understanding Debt - Maintaining a good credit score requires using no more than 30% of available credit, but many are using credit cards as emergency funds and for daily purchases [3] Financial Education and Planning - Educating oneself on debt and finances is crucial for achieving financial freedom, with financial education and coaching being the first steps [4] - Creating a budget by listing expenses and distinguishing between needs and wants is essential, with even small savings contributing to long-term financial health [5] Borrowing and Financial Tools - When borrowing is necessary, individuals should seek safe, low-interest options and avoid predatory loans, utilizing resources from credit unions [6] Long-Term Financial Wellness - Reducing debt is vital, which includes stopping further borrowing, analyzing existing debt, and establishing a realistic repayment plan [7] - Responsible use of credit, refinancing, and setting clear financial goals are recommended for building lasting financial stability [7]