A new initiative aims to shed light on the growing personal debt crisis facing Americans, revealing the substantial financial strain many households are experiencing. Debt.com's Debt Awareness Week, launched from February 17-23, introduces a Debt-Free Day Calculator designed to help consumers understand the true impact of their financial obligations.
According to recent data, the average American now carries $105,056 in total debt, representing a 0.8% increase from the previous year. Credit card debt alone averages $7,236 per cardholder, with total credit card debt reaching $8,674. For the typical full-time worker earning $62,000 annually, these figures translate to a staggering financial burden.
The Debt-Free Day Calculator provides a stark visualization of debt's impact by calculating how many days an individual must work to pay off their total debt. Howard Dvorkin, CPA and chairman of Debt.com, emphasizes that many Americans fail to recognize the severity of their debt, viewing it as a normalized part of modern life.
The calculator reveals that for an average earner, it would take approximately 20 months of total income to become completely debt-free—assuming zero living expenses. Don Silvestri, President of Debt.com, notes that breaking down debt into days worked provides a more tangible and emotionally resonant understanding of financial challenges.
This initiative underscores a critical need for financial education and awareness. By helping consumers comprehend the true extent of their debt, Debt.com hopes to empower individuals to take proactive steps toward financial management and eventual debt reduction.
