So I finally got out of debt recently, and honestly? Talking about it has been way more helpful than I expected. Turns out most people are dealing with this too, which is kind of a relief.

Here's what got me thinking though. Total consumer debt in America is sitting at $16.5 trillion right now. That's a record high according to the New York Fed. When you break that down, the average American household is carrying around $96,371 in debt. That's genuinely wild when you consider the median full-time worker makes about $55,640 a year. So yeah, a lot of people owe more than they actually earn annually.

The St. Louis Federal Reserve found that households were spending about 9.5% of their income just paying down debt. On the surface that doesn't sound terrible, but when you dig into what makes up that debt, things get interesting. Most of it is mortgage debt, which makes sense. But here's where it gets concerning: Americans are carrying $890 billion in credit card debt alone.

Credit card debt is the real problem. The thing about it is the interest compounds daily, so your balance just keeps growing every single day you're carrying it. It's actually the opposite of how compound interest works when you're investing. This is why getting out from under credit card debt sooner rather than later actually matters.

If you're in the boat I was in and want to improve your situation, there are basically two moves: pay down what you owe or increase what you make. Ideally both. Debt consolidation loans can help simplify things if you've got multiple debts scattered around. Some people use side hustles or look for better paying jobs. Yeah, it takes work, but it's worth it.

The thing that surprised me most was realizing I wasn't alone in this. If your debt-to-income ratio is worse than average, you're definitely in good company. And with some focus and the right approach, it actually gets better.