We're told the economy is booming, but the average American's personal debt is near $40,000. Ten percent of us say we expect to be in debt until we die.
Millennial money expert and author Stefanie O'Connell says we're spending too much, but it's not all on luxuries.
"Also, rising costs of living, rising costs of health care, housing etc., which are creating a greater strain on Americans' ability to meet their basic, essential needs."
O'Connell says even if you're not in debt this will affect you.
"Americans are gonna be looking at the credit card bill piling up and up and up and grow more wary of swiping and swiping and swiping and over time this is likely to slow the economy."
The San Francisco Fed estimates the Great Recession will cost the average American $70,000 over a lifetime.
"Even today wage growth is still extremely sluggish; even though unemployment is extremely low, pay is just not rising at the same rate."
O'Connell says eventually it affects the entire economy because it's hard to grow if consumers have to stop spending.