In this era, finances matter. Strong financial capabilities allow stability and growth. However, Americans are under financial stress now, more than ever. Due to financial woes, stress rates have never been higher than in the last five years. There are several contributing factors that are causing distress among many Americans. According to a survey conducted where thousands of people from all fifty states were asked to select from a list, what was the No.1 reason for their financial stress? The most commonly occurring answer was paying off their debt. The other reasons chosen from the list included:
- Retirement worries
- Lack of funds for an emergency
- Desirous of upgraded lifestyle
- Affording education
- Maintaining Stability
- Paying rent and bills
The sequence of the above list is according to the frequency of answers received from people. It shows that people have the most concerns about paying off their debt. After that comes retiring issues and, then, tension about not having enough money if an emergency arises. However, the lead cause of worry and financial stress was being able to clear off debt in the shape of credit cards.
Being able to face such worries and fears in the shape of planning is the best way to handle it. Running away from fears rather than addressing them will only worsen anyone’s situation even more. Being able to take actionable steps to correct any issues and to plan with a strategy is the best course of action that can be taken to decrease someone’s stress about money. Almost all states could report the following reasons for their woes and the ever-present motives for their increasing financial stress.
Not surprisingly, paying off debt is the most common reason for stress. With the most debt balance per capita, California is most burdened with mortgage debt, with student and auto loans being close seconds.
Texas has a smaller debt balance per capita but, still, the main stress agent here is paying off debts as well. Debt has decreased in this area but that doesn’t mean it’s any easier if you move to Texas.
On the national scale, Florida has a relatively smaller debt balance per capita than others. However, their higher credit card usage and loan debt doesn’t make life free of financial stress in this sunny state.
Don’t be surprised if New York doesn’t host the highest total debt balance per capita. Most of the debt incurred in the Big Apple is the result of personal choices and running behind on payments that are due. This makes it the highest percentage of balance, which makes things much more difficult to straighten.
Compared to the national average, Illinois is on about at the same level, standing at $45,010 debt balance per capita. But, at the same time, student loan levels are much heavier with a slightly higher debt on credit cards.
Student loans lead to a lot of financial stress. However, a lower debt balance per capita is true for Pennsylvania which is about the same for Ohio, below. Student loan exemptions are permitted for certain fields of work such as public service jobs, where students joining public service employment can qualify for loan forgiveness programs if they are burdened with federal student loans.
The total debt here as compared to the national average is lower. But, with student loans rampant use, it has the highest per capita of student loan-based debt. For relief here, several pay-off methods can be taken. One method is refinancing your loans at a lower interest rate and another is income-based repayment plans to undo some financial stress.
Credit card debt is the number one worry in North Carolina. Due to lower income than the national level, the debt per capita difference is in the hundreds of thousands. Significantly at par with per capita debt, North Carolina residents have been seen to have some trouble in paying off debt.
In Michigan, paying off debt is similarly the most commonly occurring reasons for distress, in terms of finances. The average credit card debt is lower here ,as is the hours of work available, which is needed to pay off mortgage loans.
For many people in New Jersey, retiring broke is the main cause of financial stress. However, New Jersey is regarded as one of the best states for retiring with riches. Medicare and social security benefits contribute highly to the good life after retirement.
Paying off debt in Virginia is the main source of distress, also. Virginia has the third highest debt, in terms of credit cards, in the nation.
Higher than most states, Washington resident’s reason for distress is paying off debt. Its average credit card debt is higher than many states. Mortgage laws and regulations weigh heavily on locals and they have to work more hours than others in order to pay for their monthly mortgage plans.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.