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Why Americans are spending more than they earn?

Marie Deary

Jun 13, 2023

One in four Americans spend more than they earn!

A recent study by the Pew Research Center found that nearly one in four Americans (23%) say they spend more money than they earn each month. This is up from 19% in 2013. The study found that this trend is happening across all demographic groups, including by age, race, and income level.

There are a number of reasons why Americans are spending more than they earn. One reason is that the cost of living has been rising faster than wages in recent years. This has made it difficult for many people to keep up with their expenses.

Another reason is that Americans are increasingly using credit cards to pay for their purchases. This can lead to debt problems if people are not able to pay off their credit card balances in full each month.

Finally, some Americans may be spending more money than they earn because they are trying to keep up with the Joneses. This is the idea that people feel the need to spend money on things that their friends and neighbors have, even if they cannot afford them.

The trend of Americans spending more than they earn is a serious problem. It can lead to debt, financial stress, and even bankruptcy. If you are struggling with this problem, there are a number of things you can do to get back on track.

One thing you can do is to create a budget. This will help you track your income and expenses so that you can see where your money is going. Once you know where your money is going, you can start to make changes to your spending habits.

Another thing you can do is to pay off your credit card debt. This will free up money that you can use to pay for other expenses. You can also try to negotiate lower interest rates on your credit card debt.

Finally, you may need to make some lifestyle changes. This could mean cutting back on eating out, canceling unused subscriptions, or finding ways to save money on your commute.

If you are struggling with debt, there are a number of resources available to help you. You can talk to a credit counselor, a financial advisor, or a bankruptcy attorney. There are also a number of government programs that can help you get back on your feet.

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