Credit has been just a little too easy to get for the Average American, you know, those wonderful folks who cannot balance a check book, punch a chad or even program their VCR? Amazing the old cliché; “Shop ’till you drop!” Well, consumerism is alive and well in America and now we find ourselves in a little bit of a pickle, you see with high gasoline prices and food costs, many American Families are charging their groceries and for this convenience they are paying some pretty steep interest rates.
This is very unfortunate because in reality they should be putting their money into long-term investments that could grow and double every 7.7 years. It’s just a travesty to see them pay all their money and future money to credit card companies that they have allowed themselves to be economically enslaved too. How did all this happen? Well, apparently consumers forgot the number one credit tip; Don’t Borrow Money Unless You Can Pay it Back!
Maybe, they had not thought much about it, but statistically the average American has 1.8 times their annual earning in short-term debt. This is credit cards, car loans and other types of loans, not including mortgages or long-term debt. Speaking of which we all know that the mortgage crisis is at critical levels, along with the credit card debt and unless folks get back to credit tip number one, and think about this as they continue to dig themselves a deeper hole to which there is no mistake, all bets are off. Please pray for the financially inept American Consumer for me.