Sunday, December 6, 2015

Higher Interest Rates Will Make Debt Woes Worse

    With interest rates likely to edge up, it's worth noting many Americans are already swimming in debt. The top three household debts are mortgage, student loans and credit card debt which is over $16 per HH for those homes carrying that kind of debt.
     I was fortunate to come of age before the crazy student loan blitz started. I went to public colleges to hold down the cost, but I graduated debt free.  I am finally free of credit card and car payments, but remember times when they were stifling.
      Just bills like insurance of all kinds, cable, phone and other things are enough to keep me well spent.
       Some people are hopelessly buried. Hence the spate of abandoned homes. The survey firm NerdWallet estimates it would take forty years to get out from under these debts, which means for most it won't happen.
     "The cost of debt service is staggering,"  says the NerdWallet report.
      

8 comments:

Anonymous said...

Expect more bancrupties, foreclousures, as America continues it's decline to a 3rd world country, nice op-ed piece in the Albany times union abpout our MOC...

Anonymous said...

We don't care about no stinkin' debt. What has Obama left the kids, $18,000,000,000,000 (that's trillion to public school graduates)of it. I want my FreeStuff now. I want my tax breaks now. But on everyone and everything else, I want them to start paying their fair share. Me, I just want to play golf, as it were.

Anonymous said...

The thing about a home mortgage is that you are actually getting something for your money. Compare that with what the #occupy black lives matter more than white lives protesters, who are getting degrees in sensitivity and diversity classes. There are only so many jobs for teachers and executive directors of not for profits.

Anonymous said...

You're on the money, 12:59.

Anonymous said...

If you have a net worth of $1, you're in the top 39% of Americans. That's why it's so crazy when people start throwing out stats about the 1 percenters or such and such controls 90% of the wealth...

Anonymous said...

What we really need is to repeal the estate tax. This will help those that really need it. Aaron Woolf, Matt Doheny, Elise and her family...

Anonymous said...

People need To spend less than you make ,save religiously and invest for your future . Most people HAVE Zero financial discipline .and have gone overboard on conspicuous consumption and that strtegy will penalize you harshly now.

Those with discipline who followed that formula for decades have substantial net worth , sleep well. Because that strategy leaves one very comfortable . Now with promise of higher returns on cds as well as other invested funds is only a good thing .Those of us who saved diligently for decades were penalized with very very low returns on certain fixed investments for over a decade to subsidize low interst rates for out of control spending by the undiscipled individual and corporation and the banks

That worm will now turn .with higher returns so if you are wise , now is time to cut your spending ,exercise disciplne, understand the difference between a need and a want and. Focus your emphasis on saving and decent returns .

Those that fail to learn this life lesson will ALWAYS be behind rhe ball financially ...the CHOICE is yours .

otherwords1 said...

American business is supposed to be doing well. The middle and lower class has not seen it as evidenced from the increasing widening of the gap in assets and wages with the high class. But then again, we are ruled, not governed by this high class. All legislatures in the country seem to do their bidding. Our Congress never works to close the GAP, and INCREASE the economic, political and social standard of the two lower classes.
It's not as if they CAN'T do this. It's because the high class controls the lobbying and economic support of the high class people IN their class they put into office.
Some time the people of this country MIGHT just vote people out of office and elect a person who SERVES while being a member IN one of the two lower classes. Or are WE too stupid to govern?
Congress simply ignores the fundamental problem of the GAP which is the primary cause of the deterioration of so many parts of our society. We continue to be told "job creation" by politicians and the media as the answer hurts us all. Media supports those who own it-members of the....you guessed it....THE HIGH CLASS!
Don't be fooled by politicians saying they are for "job" creation. Remember ANY single part time job is a job that STILL needs federal subsidies (now being cut again) to pay the bills of a household. Creating more jobs to close the GAP is a political Lie of enormous scope. Don't any of you realize this?