Friday, December 12, 2008

US Households cut back on DEBT...

Its about freaking time...

We have known for a long time that the "typical" American family are just a bunch of big old babies who do not deny themselves anything, much less their children, saddling themselves with debt with no thought of future repayment of what they owe. They want it and that is all that matters.

Well, it seems that a good side product of the current financial fiasco that this country finds itself is that FOR THE FIRST TIME EVER, US Households cut back on debt. In previous "hard times" the debt rate slowed, but it never went backwards.

This recession seems to have done what Susie Ormond, Dave Ramsey, even Dr. Phil have been unable to do - make Americans live WITHIN or {gasp} BELOW their means.

Could it be that the ME generation could possibly learn a valuable lesson and be the generation that our grandparents were that lived through the Depression? Could they be what became the "Greatest Generation" or something close?

Could the spoiled child really be growing up?

Entire article here:

http://news.yahoo.com/s/ap/20081211/ap_on_bi_go_ec_fi/economy_consumer_debt;_ylt=AhzCeCEuZPmrSxTtkHQYkZAEtbAF

3 comments:

Brigid said...

I couldn't agree more.

I ran up some credit card debt in my 20's trying to buy things I didn't need, but fortunately, before it was more than a few thousand I said. . "Nope!" and stopped.

I consider myself lucky to have been adopted by an older couple who were raised in the end of the depression. We lived within our means. I don't even remember SEEING my parents use a credit card until they were about 70 and Dad would use it so he didn't have to prepay for gas out in the rain and the cold.

My clothes were usually home made, my bicycle used and fixed up. I lacked for none of the essentials, books, a homemade meal and cookies, a toasty fire and board games, love and hugs. We had a TV but we were limited to a few hours a week. We were expected to entertain ourselves instead.

Sure, in the 70's, some of our friends made fun, but it was a good upbringing and one that's done me well now. I have more debt than I want, but it's for education. That will pay for itself over time with increased earning. I considered it an investment, not an expenditure.

Thanks again!
B.

FULL OF JOY said...

We encountered Dave when we were prego with our first...I have to admit it seemed crazy to me "live without DEBT?!?! Impossible' But it was one of the best things we did, especially now!

theotherryan said...

Along with gas prices people finally realizing that they need to spend only as much as they make or even less could be the silver lining of this whole mess we are in.

No credit card debt here. I've got a loan for school but consider that a great investment. I see education and reasonably priced homes the best two reasons to borrow money. Maybe getting a fairly inexpensive car if you can't pay in cash is part of life for lots of people. That being said drive that sucker into the ground so you can save enough to get the next one with cash.