Controlling DebtCurrently the United States has a negative savings rate. That means that we as a nation are not savings enough and we're spending more than what we earn. However, that has begun to change lately. The Chinese are saving approximately 40% of their paycheck. They buy gold and silver. We need to get back to basics before it's too late. Everything that has been purchased in the last fews years has been on credit. Credit has to be paid back with interest. Do not get suckered into credit card debt or any debt for that matter. We have a big problem in the United States and around the world controlling debt. For instance our government has created the biggest debt in world history. Our current administration has added over 1 trillion dollars in less than 1 year. It took this nation 235 years to get to that amount. As individuals, credit card debt is the biggest problem we have since we use it to buy things that we can't afford or worse to pay for our obligations such as food and rent. Mortgage debt just adds to the problem which is even bigger issue when we include banking institutions that lent out this money. The government usually attempts to step in to ease the pain, but at times they make matters worse. The Federal Reserve Bank also tries to inject money into the system and by lowering interest rates in order to jump start the economy. Or they simply create more money, which is reality is fake money. They print it out of thin air since the money has not value, that's why they can simply print it. It's like going to the copier and making copies, it's really that simple, honestly. Dollars are not backed by anything nor does it produce anything so what true value does it have? I know the government tells us that it has value, but think about it. Think logically, where does the government get so much money? It's simply printed so how can it be controlled or monitored? The Federal Reserve continues the racket by lowering interest rates. It is then less less expensive for banks to loan out money. Individuals are then able to get loans at a lower rate. The economy was booming and everyone was making money except those who had a problem controlling debt. They made it so easy for people to get loans that everyone jumped on the bandwagon. The economy was built on easy credit. People around the world are also suffering as a result of easy credit. We are in for some really tough times ahead. Let's begin by controlling and managing your debt and finances. One quick point, those who took out fancy loans on their mortgage such as an ARM (Adjustable Rate Mortgage) saw their mortgage payments shoot up because the ARM reset after 5 years. God only knows how bad it's going to get so start preparing now, it's only get worse this year. Most people buy things on credit, it's a fact, that's how some survive. Most of us do not make enough money to be able to afford luxury items, vacations or dinners so they rely on credit cards to purchase these items. I read somewhere that most households in the US owe at least $6,000 in credit card debt, but I'm sure it's a bit higher than that. Some other resources on the Internet say $8,000 that's a lot of money especially if your interest rate is high. So you see, people are just accumulating debt at a tremendous rate. One needs to be controlling their debt in order to survive the upcoming depression. If you have a lot of credit card debt then you need to take care of it immediately. Please don't buy things on impulse, it's the worse thing you can do. Letting your emotions dictate your spending habit is a recipe for disaster. We recommend that you pay down your highest credit card first. Then work your way down, but if you're in deep debt, you may need to contact a debt consolidation business. They can help you, but be careful, don't use a home equity line of credit to pay down your bills. You see it all the time on TV or in your local newspapers. Home Equity is basically the amount of money already paid on your house or the amount the home is worth at current market value. This is called equity and some people take out loans on equity and find it difficult to pay it back. Now that your credit cards are clear and you debts has been paid it is important to stay here at this point. No one said that controlling debt is going to be easy, but you have to make the effort. You will have to sacrifice and start by staying home. Don't forget that the equity loan has to get paid back as well. Just because it's part of your mortgage payment doesn't make it any easier, it becomes much harder. Banks are getting into serious problems because people can't afford to pay back the loans so they go into foreclosure and lose their homes, its happening at an alarming rate. You probably know someone who has been a victim to this crisis. In some cases the home is no longer worth it's value so people are just walking out or worse, they've decided to burn their house down to collect the insurance, but unfortunately that won't work. Some have ended up in jail. You have to ask yourself if it's all worth it. Controlling debt is critical in building financial wealth, there's no question. I'll have much more to say about this in the future as I expand the writing and offer suggestions to get help. But it's simple, leave your credit cards at home or better yet cut it up. Save your money and buy whatever you need with cash. If you can't pay the bills entirely this month make sure you pay it soon and don't keep adding purchases to your cards. Also, be aware of those department store cards, they'll rip you off with very high interest rates. I don't understand why they charge so much interest and get away with it. A card charging 22% is just insane so leave it at home or don't get swayed into applying for one just to get a 10% discount. That 10% will end up costing you a lot of money in the long run. Don't do it and if you do, pay it off as soon as you get the bill. Controlling debt can make you wealthy, all it takes is for you to be smart, stay ahead of the game. It's that simple. Good luck.
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