America Saves Week: Pay Off High-Interest Debt
February 24th, 2015
MEPC recently examined the financial stability of Mississippians, according to the Corporation for Enterprise Development’s 2015 Assets & Opportunity Scorecard. The Scorecard illustrates that many Mississippians continue to struggle financially – in both covering day-to-day living expenses and saving for a more prosperous future. It is also increasingly more difficult for families to discover financial freedom when overwhelmed by debt.
Asset poverty refers to the percentage of households without sufficient net worth to live at the poverty level for three months in the absence of income. The Scorecard found that 30.4 percent of Mississippi households and 25.4 percent of American households are asset poor, meaning that the assets they do have, like a savings account or home are overwhelmed by debt (See Chart). Additionally, 19.5 percent of Mississippi households and 17 percent of American households are extreme asset poor, meaning that their household debt exceeds their financial assets, and they have no financial cushion to weather any type of financial crises.
With planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth. Find places to cut your spending so that you can pay down your debts faster and find places to trim your expenses.
Source: Corporation for Enterprise Development. (2015). Assets and Opportunity Scorecard, 2015. Retrieved from http://assetsandopportunity.org/scorecard/