We live in a world of debt. Everywhere you look, there is debt. Our entire economy is based on debt. Buy a house… go into debt. Buy a new car… go into debt. Debt is a part of life. It is as common as toast in the morning…maybe more so.

So what’s wrong with debt? Maybe nothing, but probably everything. I am not saying that all debt is bad, but uncontrolled spending and consumer debt is a slippery path that will lead to financial ruin. Notice I said will lead, not may lead to ruin.

Debt is like a drug. A very powerful drug. It fuels our desires. We can have whatever we want right now. We no longer have to save for that new boat. We can run down to the dealer, sign on the dotted line, and be on the lake by nightfall. Because of the ease of borrowing, debt is very addictive.

Here are some startling facts about debt:

· The average household debt in the U.S., including mortgage debt is about $84,545.

· Out of 2.04 million U.S. households, one out of every 53, filed for bankruptcy in 2005.

· 40 percent of Americans annually spend more than they earn.

· 60 percent of active credit cards are not paid off monthly.

· Over 24 percent of personal expenditures in this country are made with credit and debit cards.

· The average interest rate on credit cards is 18.9 percent.

· 23 percent of Americans admit to having maxed out their credit card.

· The national savings rate has gone from 5 percent in 1994 to zero in 2005.

· The average 50-year-old American has a personal wealth, including home equity, of less than $40,000.

Scary isn’t it? Not only are most Americans drowning in debt, but our government is leading the way down the debt highway. The congress just recently raised our government’s debt level to $9 trillion. That’s trillion, not billion. That is debt that we are passing on to our children and grandchildren. Each household’s share of the national debt is $473,456. I don’t know about you, but I don’t have that much money even if I were to sell everything I own.

It’s no wonder more and more people are filing for bankruptcy. But there are other options, options that could save your credit. Options that could get you back on the right path. The path to debt-free living. You cannot imagine the freedom of living without debt. Being in debt is slavery. It seriously limits your options about where you live, work, and play. In short, debt affects all areas of your life.

Are you in a seemingly hopeless situation because of debt? Are you considering bankruptcy? Future articles will examine other options that are available. Let’s get started down the path to debt-free living right now.