Now that Christmas has passed and we are entering the new year quickly, again, many people have done it with their vacation expenses. I know it's easy to do when you have credit available on your credit cards. I often fell victim to this fatal blow to the financial policy of my home. Until recently, I was now trying to be more realistic with the woman and the children by letting them know that we should be practical in our gifts. I mean who really needs a 70 inch big screen TV to watch football? Corporate America has done a good job in blurring the boundaries between our needs and our desires. What is it is that children and young adults today are growing in the illusion that all this is for real. The only real thing is the bills that arrive at the end of the month and that we can not afford. Many people are trying to keep their credit rating high in order to get more credit and to go deeper into debt simply so that everything goes well.
A study recently revealed that the majority of Americans were three weeks away from bankruptcy. Not surprisingly, we find that the average American's income / debt ratio is now 154%. The decline in the number of bankruptcy filings continued to occur solely because banks allow these individuals to become more self-financing. The average American in 2008 had about $ 4,000 in credit card debt. By the end of 2013, that number had risen to about $ 16,000. During the same period, the median income per household also decreased by $ 4,000 per year. This is nothing more than a recipe for people with unsustainable debt that results in a bankruptcy filing.
Let's face it, citizens are broken, so is the government. US debt has now exceeded 105% of GDP and nobody seems to care. Instead, Congress demands that the debt ceiling be raised so that we can reach 120% of GDP, I suppose. I think our politicians are completely disconnected and they continue to make bad decisions in Main St., America continues to suffer. In 2010, the United States saw a record number of individuals filing for bankruptcy up to 1.6 million. Although this number has now fallen to 1.1 million, many predict that new records will be established over the next two years. Recently, it was reported that there were more than 5 million homes in the United States being foreclosed. The news continues to let people know that real estate is recovering now and everything is better. I guess the reporter did not read all the statistics that are important to make this statement. Only time will tell if this Keynesian form of government will fail or work for the first time in history. I put my money in check. While we can do a lot to change our government, we can not change the way we live and try to find the path to debt relief, even if it means bankruptcy.