Many Americans are delaying important milestones because of the burden of debt. And with a difficult economy due to the COVID-19 pandemic, it’s becoming more difficult for many people to get rid of household debts. We’re taking a look at some of the most common types of debt many Americans are dealing with, and how our Debt Free Life solution can help you manage your debts effectively so you can get on track to financial freedom. 

Auto loans

Auto loans are one of the most common types of debt that people carry. Recently, the New York Fed revealed that auto loans account for more than a trillion dollars in the United States. While they are also one of the easier debts to pay off, many people still have a hefty car loan payment every month, which doesn’t help when it comes time to prioritize monthly payments. 

Mortgage loans

Next up is one of the most expensive types of debt most American households face: Mortgage loans. Although home loans are considered one of the less risky types of debt, as they are related to an asset that can earn value, they are still one of the leading factors in overwhelming debt.

According to the New York Federal Reserve, American households have racked up approximately $9.4 trillion in mortgage balances.  

Credit card debt

On Average, an American household carries approximately $6,100 in credit card balances with the total burden of credit card balances in America reaching $413.7 billion.

Student loan debt

Student loan debt is one of the biggest burdens for young people.  Student loan debt is also a primary reason that millennials are pushing off important milestones like buying a house and starting a family. In late 2019, the New York Fed reported that student loan debt reached $1.48 trillion

The emotional burden of debt  

The effects of overwhelming debt go far beyond financial problems. An Associated Press study found that 10-16 million Americans are experiencing reduced physical and mental health because of high debt. In fact, individuals struggling to pay off debts are twice as likely to develop mental health issues like anxiety and depression. This trend is likely to continue as all forms of debt increase each year.  

How the Debt Free Life solution helps pay off debts 

While the struggle of being in debt continues to affect many Americans, many of us are finding creative ways to help lessen the burden of debt in our daily lives.

The Debt Free Life solution harnesses the power of a life insurance policy to help you pay off debts while decreasing the amount of interest you pay to lenders. In nine years or less, your debt will be paid off and the cash value of your insurance policy grows as tax-free retirement savings. All the while, you can enjoy the protection of life insurance in the event you pass away or become critically ill or disabled.

Debt Free Life has helped thousands of families get on track to being debt free for good and taking the step towards financial freedom offers you peace of mind and confidence in the future.  

Achieve financial freedom with Debt Free Life

The Debt Free Life program is supported by investment and savings strategies that use the value of your life insurance policy to help with purchases, instead of creating more debt through lenders. Because of this, you will have the ability to use tax-free money from your insurance plan to pay off your existing debts.  

Ready to live a Debt Free Life?

Our team of advisors are here to help you get a plan in place in just a few simple steps. Connect with a Quility insurance advisor today to learn more about Debt Free Life and begin your journey to financial freedom.

Let’s Get Started

If you are ready to get started with Debt Free Life, schedule a consultation today!

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Calie Brummer
Head of Digital Communications
Calie Brummer is a staff writer and Head of Digital Communications at Quility Insurance with a focus on financial well-being and life insurance solutions.