Home / Personal Finance / General / Stacey Abrams is $200,000 in debt. She’s not alone.

Stacey Abrams is $200,000 in debt. She’s not alone.

Stacey Abrams, the Democratic frontrunner in Georgia’s governor race, stated her struggles with debt “will sound familiar to others who are the first in their families to earn real money.”

Georgia gubernatorial candidate Stacey Abrams is greater than $200,000 in debt.

Abrams, 44, wrote an op-ed for Fortune explaining how scholar loans, cash-strapped dad and mom, and a sibling who struggles with drug dependancy contributed to her monetary burden.

“Once you dig a hole, you’re always trying to dig out,” she instructed CNNMoney on Wednesday. “This is something I’m living everyday.”

Abrams has overtly mentioned her cash troubles earlier than. And monetary disclosure types revealed final month that she owes $50,000 in again taxes and holds $170,000 in bank card and scholar mortgage debt.

Recent research present any such state of affairs is not unusual.

A 2017 survey by Northwestern Mutual urged three-quarters of Americans are in debt, and their common debt load — not together with mortgage debt — is $37,000. About one in ten additionally stated their debt stage tops $100,000.

Related: Should I take out a mortgage to pay my money owed?

Abrams, a member of the Georgia House of Representatives since 2006, is the Democratic frontrunner in the state’s governor race. The major is set for May 22.

Her Fortune commentary argues her debt load ought to not disqualify her.

“I suspect my situation will sound familiar to others who are the first in their families to earn real money,” Abrams stated.

She grew up what she describes as “genteel poor.” When she bought into faculty, she understood little about managing cash or how bank cards labored.

Years later, when she graduated from Yale Law School, she was deep in scholar mortgage and bank card debt. She says she dug in and managed to repay her bank cards. But then tragedy struck her household.

Related: The case for canceling all scholar debt

Hurricane Katrina left her dad and mom in want of economic assist. And in 2006, she says they took in the new child daughter of Abrams’ brother, who was hooked on medication.

Abrams was working as lawyer and made first rate cash. So she did what she may to assist, however in the meantime she was sinking deeper into one other debt spiral.

“No amount of education completely erases how hard it is to catch up,” she stated.

Abrams instructed CNNMoney that she has spoken overtly about her monetary and private troubles as a result of she desires to get rid of the stigma.

“Real people have real lives, things happen,” she stated.

She additionally stated her monetary experiences helped inform her “economic mobility plan” for Georgia. It would come with an earned earnings tax credit score, a household financial savings program, and a monetary literacy effort.

CNNMoney (New York) First printed April 25, 2018: 6:03 PM ET



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About Virgie Powell

Virgie B. Powell writes for Reiterment Planning and Tax Advice sections in AmericaRichest.

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