The American Family Financial Crisis
The American Family Financial Crisis
Our country is in a major financial crisis. Some states have been affected more severely than others. Economists predict that over one-third of our country wouldn’t be able to make it without a job by using the money they have in savings. That is an alarming number of people who have been spending more than they have been saving. Consumer debt, more specifically credit card debt, and sub-prime mortgages are a constant worry for many families.
Credit card debt is not an uncommon thing these days. It used to be almost unheard of hear of people who were buried under thousands of dollars in credit card debt. Now, it isn’t shocking to hear that families here and there have $19,000 in credit card debt or even upwards of $100,000 on their credit cards.
People have been forced to skip payments on their mortgages. This can be especially costly with an adjustable rate mortgage. Some mortgages have increased by $200 per month, or even more. The problem is that too many people jumped into too many loans before carefully considering their budget.
Financial counseling services, as well as online budget services are in full swing. Communities and business around the country have begun offering more credit and loan counseling services. These classes are filling up with people who can’t afford almost anything anymore because everything they make is going towards debt payments. A big problem is that most of this money is being paid towards interest, not principle.
Maybe this crisis is a good and bad thing. It has sparked people’s interest in learning how to manage their finances. The majority of this country does not understand money management or the correct way to save and spend. Hopefully, this crisis will inspire more people to get out of debt and start saving for a rainy day.
Leave a Reply