Common Debt Problems

Americans became quite comfortable throwing down the plastic for every little purchase that the average American carried thousands of dollars in credit card debt. In fact, the recent recession has found such high level celebrities as model Pamela Anderson, actor Nicholas Cage and celebrity chef Gordon Ramsey in major trouble due to their debts.

In America, there are many debt problems which are common to most people. While celebrities might pay $10 million for a mansion that has marble floors, most Americans make the same mistakes with their money. Here are some typical debt problems Americans are facing:

Too much credit card debt - Credit card debt might be one of the biggest debt problems Americans are facing today. As of March 2009, there were 318 million Visa credit cards alone in America. American's credit card debt was just under $1 trillion, and the average American household had over $8,000 in credit card debt. Obviously, this much debt can be difficult for anyone, but many Americans have more credit debt, as well as other forms of debt.

Not enough financial discipline - One of the least practiced financial disciplines in America is budgeting. People often spend money "willy nilly" without investing time into knowing where money should and should not go. As a result, Americans spend thousands of dollars a month without putting some money aside for rent, car payments, etc. Should an unforeseen financial crisis occur, such as a car accident, medical emergency or death in the family, many people are left without any sort of emergency fund. This lack of discipline is the cause of many financial headaches and debt problems. No sense of monthly income - Few Americans budget, which means millions of people spend far more money every month than they have coming in. People stress over how to pay their rent or their mortgage because they did not spend wisely the previous month. Without an idea of how much money must be spent on bills every month, debt problems can get so severe that they leave you without a way to pay your rent, your car bill or even your utilities!

Too many toys - Americans love their toys. Whether it's a third car, a jet ski or some other extravagant expense, Americans satisfying their need for "things." Eliminating debt problems means getting rid of all those toys that fill up your garage and often get used very little. Losing a jet ski or a car you don't need can save you hundreds of dollars a month.

Since most Americans face many common debt problems, it means that solutions to these problems are not that hard to find. Some simply financial discipline and a little bit of sacrifice can mean the difference between stressing over rent every month and being able to save hundreds of dollars in your bank account.