A caller to The Ramsey Show making $126,000 a year considered bankruptcy until hosts helped him realize his debt was actually $59,000. With a budget and clear plan, he can pay it off without harming his financial future (1). Americans average $105,056 in debt, with Millennials highest at $371,864 (3).

To tackle debt, start with a budget listing essential expenses and track spending accurately. Identify areas of overspending, make cuts, and consider consolidation loans or debt relief programs as a last resort. Additional income from side work or selling items can expedite debt repayment (2).

Understanding where your money goes, calculating your true debt, and creating a plan is key to overcoming financial challenges. Bankruptcy is not the answer; clarity, discipline, and strategy are the solution (4). Remember, small steps and adjustments can lead to significant progress in debt repayment.

Read more at Yahoo Finance: Philly man earns over $126K but struggles with $25K debt as Ramsey Show urges him to cut spending and budget