Debt

Debt is an obligation to pay someone back, either in money or other goods. Before the recession of 2008 and the financial meltdown, many people and corporations took on so much debt that their houses were foreclosed and their companies failed or had to be sustained by the government until they got back on their feet. (An example is General Motors.)

About Debt

Debt is defined as owing a certain amount of money to someone or an obligation. You can be in debt due to monetary problems which is most common and also owe someone a favor in return for something they did for you.

In the United States it is estimated that every single person (man, woman or child), is in debt around $8,000. 36% of this debt is credit card debt and the other 64 % includes Car loans, school loans, personal loans and other non revolving debts. According to information gathered by the US Census bureau, there were approximately 173 million credit card holders in the United States in 2006 and that number is projected to grow to 181 million Americans by 2010. These same Americans own approximately 1.5 billion cards - an average of nearly nine credit cards issued per credit card holder. (Source: money-zine.com)

The National Debt for the United States is estimated to be over $13 Trillion. The National Debt has been increasing by $4.8 Billion per day since September of 2007. Unbelievable! The website, usdebtclock.org has a great real-time clock to watch the National Debt and many other clocks. You can also check out the National Debt for all the other countries of the world at this same site.

According to James Truslow Adams, The American Dream is that dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement. It is a difficult dream for the European upper classes to interpret adequately, and too many of us ourselves have grown weary and mistrustful of it. It is not a dream of motor cars and high wages merely, but a dream of social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.

Today, this dream seems to be all about the motor cars and high wages and sadly it is achieved by creating debt just so you can have the items you deem as important in your life. Today, you can’t rent a hotel room, rent a car, shop online or build credit without a credit card. Being debt free seems like a dream that isn’t about to come true for most.

For those who dare to dream, there are organizations available to help you solve your debt problems. To begin, cut your cards in half and throw them out, and reduce the number of cards you have to just one. Use it for reservations, emergencies and so on but realize you need to pay that money back or the interest will bury you. Bottom line is, nothing is free and you have to work for what you want just like our ancestors did before the plastic.

Created by LovesChaCha