4 Ways To Break Free of ‘Survival Debt’ and Get Back on Track

Core Insights - Financial strain is increasingly affecting Americans, with 29% identifying the rising cost of living as their primary financial concern [1] - A Zety survey indicates that 48% of Americans have borrowed to cover essential expenses, while 71% carry credit card debt, and 56% feel their income is insufficient to manage both debt repayment and savings [2] Group 1: Financial Challenges - Inflation continues to be a significant burden, contributing to financial strain for many families [1] - The concept of "survival debt" is emerging, where individuals struggle to balance debt repayment with essential living expenses [2] Group 2: Strategies to Manage Debt - Eliminating non-essential debt is crucial, focusing on essential needs such as food, utilities, shelter, and transportation [4] - Downsizing expenses, such as car payments, and avoiding buy now, pay later schemes can help alleviate financial pressure [5] Group 3: Increasing Income - A side hustle can provide additional income to help manage debt, with options including on-demand jobs or monetizing marketable skills [6][7] - Wage growth has not kept pace with inflation, making supplemental income increasingly important for many [6] Group 4: Debt Management Planning - Creating a structured plan to tackle high-interest debt is essential, starting with a comprehensive overview of all debts and their respective interest rates [8] - Utilizing balance transfer credit cards or credit consolidation can be effective strategies for managing debt, provided individuals remain disciplined [9]