During Debt Awareness Week, organized by Debt.com and held from February 17 to 23, it was revealed that Americans have record levels of personal debt, but many don’t realize how long it would take to pay it off.
Debt Awareness Week was founded by Howard Dvorkin, a certified public accountant and chairman of Debt.com, who has spent three decades advising Americans on the importance of managing debt responsibly.
The event aims to change this by promoting financial education and helping consumers take a closer look at their debts.
Despite these efforts, Dvorkin says a major challenge remains: many people don’t see their personal debt as a problem.
“The latest data paints a bleak picture, yet one-third of Americans are maxing out their credit cards. We think numbers provide security,” Dvorkin explains. “When everyone is in debt, no one feels it’s a problem. Debt becomes a way of life.”
Debt in numbers: Why awareness matters
· Median weekly earnings: The average full-time American worker earns $1,192 per week (about $62,000 per year, according to U.S. Bureau of Labor Statistics data).
– Total consumer debt: The average American owed $105,056 in 2024, a 0.8% increase from the previous year (Experian).
* Credit card debt: The average balance for cardholders with unpaid debt was $7,236 in the third quarter of 2024, while the total average credit card debt reached $8,674 (Federal Reserve Bank of New York and U.S. Census Bureau).
Introducing the Debt-Free Days Calculator
A key feature of Debt Awareness Week is the Debt-Free Days Calculator, a tool designed to make debt feel real and actionable. It shows that the average American earning $62,000 a year with $105,056 in debt would need 20 months of their entire income to become debt-free, assuming they spent nothing on daily living expenses.
“When looking at credit card debt alone, the average person would need nearly two full months of salary to pay off their balances,” says Debt.com president Don Silvestri. “With our Debt-Free Days Calculator, users can determine how many days they must work this year just to cover their credit cards, student loans, auto loans, and personal loans, which really highlights their financial well-being.”
How it works:
Add up personal debt
Factor in annual income
The calculator converts the result into the number of workdays needed to pay off the debt
Visualize the impact with a personal Debt-Free Day on a calendar
“When you realize you’re working most of the year just to pay off debt, it really hits home,” Silvestri explains. “A lump sum like $20,000 in debt may not seem overwhelming, but when broken down into days of your life, it has a different impact.”
A national call for financial education
Debt.com launched Debt Awareness Week to educate and empower consumers with the knowledge and tools to break the debt cycle and take control of their financial futures. “If we can move Americans’ Debt-Free Day closer, it will be a game-changer for millions,” Dvorkin says. “It won’t be easy, but it’s not impossible. We just need to tackle our debts one day at a time.”
For free resources on debt management, credit counseling, and budgeting, click here.
Image: DiarioNY
