Reduce debt to save money

    The rise in the cost of living has outpaced income growth in recent years. Household income has grown by 28 percent in the past 13 years, but the cost of living has gone up 30 percent in that time period. Some of the largest expenses for consumers — like medical care, food and housing — have significantly outpaced income growth. Medical costs increased by 57 percent and food and beverage prices by 36 percent in that same span.
    The America Saves campaign, managed by the nonprofit Consumer Federation of America, is working to help educate and motivate people to change these trends. Their goals are to get people to decrease personal debt and increase personal savings as a means to increased financial stability. Getting out of debt is the third most popular goal people select when they pledge to save at www.americasaves.org.
    A recent survey showed that 45 percent of families with annual incomes under $50,000 rely on credit cards to pay for basic needs such as rent, utilities, insurance and food. Large consumer debts can also keep people from saving and building wealth. The good news is that there is hope. With planning, discipline, patience and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth.

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