Tuesday, October 7, 2008

Debt, debt, and more debt

So, the markets are down and everything on the news is gloom and doom.

The U.S. National Debt is $10 trillion.

U.S. corporations are who knows how much in debt, at least $700 billion, a lot more I'm sure.

And U.S. consumers are in so much debt ($2.5 trillion NOT including mortgages) that they can't keep up with their homes, their cars, or their lifestyles. They are in SO much debt that borrowing is actually down for the first time since 1998. What a novel concept - if you can't afford it, don't buy it.

There are two things we try to do, and although we aren't perfect, I think the world would do some good to follow the same counsel.

Live within your means.

Stay out of unnecessary debt.

Two simple rules. Common sense, right? Obviously it is not that common anymore.


Jessica said...

Those numbers just make my stomach hurt!

Tiffani said...

wow! that is so crazy!! I thought we were in debt bad. lol. and we just have two car payments. Which, now, i think we should have waited on getting two new cars. But at least we still can afford it. Everything else we just save up for.
I know some people that have 10 or more credit cards and are over 40k in debt. It is so crazy!!

Tiffani said...

of course, here I am complaining I can't quit my job and stay home until we pay off the cars. lol. So, i guess we are just as bad. :o(

Allison said...

I think car payments are one of those essential items. House, car, education.

I saw a family on Oprah that had 90,000 in credit card debt. AND they were going into debt at a rate of $6,000 per month because they didn't make enough to cover expenses. Crazy.

Melody said...

I can't even imagine $90,000 in cc debt. That's insane. We are working on paying off cc debt. We just took out student loans which is killing me but I know its the right decision for us right now.

Ellie said...

Amen! Haven't I heard those words before....yeah about every April and October!