This is one thing that chaps my hide. I find it ridiculous that military can so easily get credit from companies. I know that they will have a "secure" job for the next couple of years. I guess that is a good reason to stop and give someone credit.
Then don't get me started on Government/Student Loans. It is better to go into massive debt on a house or car or some other big thing. For example if you are $45,000 dollars in student loan debt and you get a good paying job after college. Yeah, you are cruising through life paying them off as you go. Then you lose your job. Oh, wait the bank wants to forecloses on your house, and now the repo man is going to take your car. You are stuck in hard spot. You claim bankruptcy. Guess what that $45,000 loan is still following you like a bad cloud. You can't get rid of it. You can claim bankruptcy 10 times and guess what that federal money you took, you still have to pay back.
The object is to live within your means with what you make right? Why can't our government get that through their heads? Seriously, you would think after 200 + years that we could get something right. But NOOOO! They have to go off and screw it up more so than it already is.
The budget cuts identified in negotiations with Boehner and Obama and others in the White House. From what I can find online, the high side of the reports was $4 trillion ( IN TEN (10) YEARS) that amounts to $400 billion a year. Wow, that is a lot some of you may say. But hold the phone. What's this? This year alone we are running at $1.5 trillion not billion, not million but trillion dollar deficit. Let me put it to you this way. GDP is known as Gross Domestic Product. Google it for more information.
GDP=$14.8 trillion
Debt=$14.5 trillion
% of debt to GDP = 98%
Let's say this another way. You make $100,000 a year <--(Yeah right!) You have debt of $98,000 and this year you will spend $110,135. Seems pretty smart to me to just keep spending. After all this will stimulate more income. ( Or in this case because we keep spending money this will create more jobs, thus create more tax payers, thus creating more government income from taxes.)
Even with the $400 billion per year cuts that is still a deficit of $1.1 Trillion or instead of spending $110,135 you would spend $107,432. Whoop-dee-doo you made no impact on your debt on the contrary not only are you adding to it but you are still paying the interest.
*****NOTE***** These numbers above are actually worse than I mathematically figured because I figured everything from GDP when in actuality we are only getting in $2.4 trillion this year from taxes. And we are still running a $1.5 trillion deficit. So much for shovel ready jobs and $1 trillion in the economic stimulus package. Did any of you get your $600?
I have read three books and I recommend them both. Get them in paper back or your local library. Rich Dad Poor Dad, The Millionaire Next Door, and The Total Money Makeover they are all by different authors. One teaches what an asset is and is not, one teaches a formula if you will on how to build wealth, and the other one teaches you how to get out of debt. They have motivated me to be more involved with what debt I (we) have and how to pay off our debt and motivated me to build wealth. Sorry I stressed you out Heather. I love you!
We as a family have focused on getting out of debt with gazelle intensity. While paying off the house right now is out of the question at least we can pay off our hospital and other similar bills. Credit cards we have gotten rid of five (I think) credit cards this year. Our debt is dwindling.
I today in this year am glad to proudly say we have not put anything on credit since......... we moved from AZ and I left the military in April of 2010.
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