Are You Over Your Head In Debt?
A recent report compiled by financial experts says that one in four – or 30 million – working American adults “is suffering serious financial distress.” The report took data from 11 major business-sponsored surveys and 10 academic research studies. The report indicates that those people are experiencing “overwhelming levels of financial distress.”

The study also indicates that many people who are experiencing financial distress are living paycheck to paycheck. These people are worried about their retirement, and insecure about being able to adequately manage their personal finances. Many have given up hope that they will ever be able to catch up.

Forty to 50% of those who report they are financially distressed also say that their worries are negatively impacting their health; they have trouble maintaining their relationships; they lead socially limited lives; and their job productivity has fallen. Eighty percent of those workers said that they spend some part of their workday dealing with financial issues instead of focusing on their work.

Financially distressed individuals are not necessarily low-income earners. Financial stress can also be attributed to amounts of consumer debt and lifestyle (also known as living beyond your means). The report made four recommendations for financially distressed people:

1. Spend less than you earn. You need to live below your means, pay off debt and start saving.

2. Get a plan. This means you need to plan ahead – and determine the difference between needs and wants. Be practical and realistic.

3. Determine your best options for relieving your financial distress. For instance, ask yourself how you can cut back on expenses, increase your income, pay down debt, obtain reasonable loans to pay off high-interest creditors, and/or seek professional help from credit managers or attorneys if necessary.

4. Check to see if your workplace offers any financial education programs. If they do, sign up.