Modern financial problems have fixes

CREDIT CARD DEBT

The first general-purpose credit card, the BankAmericard (now known as Visa), appeared on the scene in 1966. In the years since, credit cards have proliferated to the point where the average American now holds 2.6 credit cards — and $8,377 in credit card debt.

How to fix it: Temporarily cutting back on non-essential expenses can help a lot, because the faster you pay off that debt, the less interest you’ll pay and therefore the less money you’ll need to pay off the whole thing.

SAVING FOR RETIREMENT Once upon a time, everyone worked for the same company their whole working lives, and at the end of their career they retired with a fat pension. Today, only 32% of retirees have any pension at all, and that number is trending steeply downward as employer pensions continue to vanish. That means the responsibility for financing a worker’s retirement falls almost entirely on the worker.

How to fix it: The earlier you start saving for retirement, the easier it will be. If you didn’t start saving right away, though, your case is not hopeless. Workers today have access to powerful tax-advantaged retirement accounts, such as 401(k)s and IRAs, that can help maximize whatever savings they manage to accrue.

IDENTITY THEFT While identity theft in one form or another is probably as old as mankind, it didn’t become a significant issue until fairly recently. For example, the rise of credit cards meant that fraudsters could simply steal someone’s wallet and go on a spending spree with their cards. And computers and the Internet provide fraudsters with unprecedented access to sensitive financial information.

How to fix it: The first step in preventing identity theft is making it hard for people to get at your financial information. Checking your credit report on a regular basis can also help you catch fraud early on.

HIGH HEALTH CARE COSTS The health care industry has made huge scientific advances in the past 50 years, but all that work has come at a very literal cost. In 1967, Americans spent $43.5 billion on health care expenses. In 2016, we spent $3.4 trillion, which adds up to about $10,350 per person.

How to fix it: Health insurance is a financial necessity; virtually no one can pay such high costs unassisted. You can save on insurance premiums by picking up a high-deductible plan paired with an HSA, then putting enough in the HSA to cover at least one year’s deductible. That way, you’ll have enough saved up to pay for any medical expenses until insurance kicks in.