Do Americans Have Too Much Debt
Should Americans Allow Debt To Control Their Lives?
We hear every day that Americans live beyond their means as a matter of course, needing to drive or wear the newest and best just because. And it’s true that about 44% of Americans live with at least some “bad” debt such as credit card debt. While certain kinds of debt, such as student loan payments or mortgages, are actually “good” debt because they give you something for your money that’s truly going to benefit you (such as an education or building up equity in your home), much of the debt that gives Americans trouble today is credit card debt or other “bad” debt for which they’ll get nothing in return – and will likely pay whopping interest rates and charges on besides.
More and more Americans are living paycheck to paycheck, not saving for retirement or a rainy day, and living far beyond their means. But it might surprise you to know that the American economy itself really encourages this type of behavior. Why is this so?
Is your personal growth more important than the economies needs? In order to determine which factors are truly most important when deciding whether or not the country is experiencing economic growth or if you are just personally experiencing growth? So you ask what is an example of economic growth? Well, if more people are working, more people are working better jobs at this point those people are spending more money therefore the purchase rates are going up. But which one of these growths is more important to you personally. On one hand if you the consumer who spends your hard earned money for a particular item at that point the purchase has impacted you and your debt has gone up. But the economic growth potential has gone up ever so slight because of that purchase. So at this point to determine which is more important economic growth or personal growth?
So how can we expect Americans to know how to manage their own budgets wisely (and not go into debt) until our economy knows to manage its own debt AND truly reflect the numbers that show the economy’s health or sickness with real money instead of debt erroneously reflected as “dollars”?
With the national deficit being in excess of 12 trillion dollars Americans more than ever have less of of a role model on how to manage a budget. All be it the country could stand to go on a budget diet and so should you.
In the meantime, what can you do to rein in your own spending, if you need to? That’s right. Put yourself on a budget, and if you’re in debt, get out. This means swapping lattes at the corner shop for homemade coffee, putting a moratorium on buying new clothes until you’ve actually worn what you have in your closet, and paying off your present car and driving it for a few years instead of trading in for a new one every couple of years “just because”. Of course, if you’re rolling in dough, you don’t have to do these things. But the fact is, most Americans aren’t rolling in dough and to have to cut back on spending. So figure out what your basic needs are, take care of those, and cut back on the rest of your spending until you’ve got credit cards and other “frivolous debt” paid off.
You never know? We as a society could quite possibly be role models to the government in regard to the spending habits and balancing debt.
