Controlling DebtCurrently the United States has savings rate of 3%. That means that we as a nation are not savings enough and we're spending more than what we earn. 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. Our government has created the biggest debt in world history. Our current administration has added over 1 trillion dollars to the national debt in less than a 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 a greater problem since the banks made it so easy to lend 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 in reality is money created out of thin air. The FED prints or enters it into a computer screen and we the people along with the government pay the interest on the fake money that was just created, not a bad deal for the FED. It's like going to the copier and making copies, it's really that simple. Dollars are not backed by anything so what true value does it have? We know the government tells us that it has value, but think about it. Think logically, where does the government get so much money? The FED simply prints it and gives it to the government, that's why spending is so out of control. The Federal Reserve continues the racket by lowering interest rates making it easier for banks like JPMorgan Chase and Bank of America to loan you money to you. In essence you become addicated like an alcholic. 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 going to get worse. 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, dinners or even clothes so credit cards is the way to go. Some websites say that the average household in the US owes at least $8K in credit card debt. It might be worse for some people. So you see, people are just accumulating debt at a tremendous rate. One needs to be eliminating debt as soon as possible. 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 organization. They can help you, be careful, don't use a home equity line of credit to pay down your bills. 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 refinance in order to catch up. 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. 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 away or worse they decided to burn their home down to collect the insurance. Unfortunatley some folks have ended up in jail. You have to ask yourself if it's all worth it, but people lose it. Leave your credit cards at home or better yet cut them up. Save your money and buy whatever you need with cash. Do not continue 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. Stay ahead of the game. It's that simple. Good luck.
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