JACKSONVILLE, Fla — American household debt just climbed to a new record high of $17.5 trillion.
Action News Jax spoke with a financial expert who’s trying to educate people on how they can get out of debt.
Financial experts said, on average, more than 75% of American households have some type of debt like mortgages, student loans, auto loans, and credit card balances.
At the end of the fourth quarter of 2023, the total U.S. household debt hit a record high at $17.5 trillion.
“Debt today, if not paid down or eliminated, will follow you until it’s paid off,” said First Florida Credit Union Marketing Manager, Ashley Avery. “Most people are in debt due to not being able to separate their ‘needs’ from their ‘wants.’”
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“Is this really worth the debt you are going to be under?” 21-year-old Gabriel Marrero is one of the few college students who is not saddled with student loans or credit card debt. He says this is because of the side jobs he has, which help keep him debt-free.
“I’ve become a dog sitter. I’ll stay at someone’s house. I get to raid their fridge and get paid $300 for the week just to let the dogs out,” said Marrero.
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Avery said the best way to pay off debt is by smallest to largest.
“You’re putting all of your extra money into the smallest debt while you’re paying on your minimum balance,” said Avery.
Avery said it really comes down to holding yourself accountable when paying off debt and don’t buy things you don’t need.
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