The American Dream on Credit
Do you have everything you need? With all the credit extended to you over the years at low interest rates, how much did you acquire? Maybe the question is do you have everything you want? With the endless opportunity in this country with people coming from foreign soils are you really living the Dream? I personally don’t think anyone has really gone without in America since the “Great Depression.” With the flow on money in our country are we in trouble because we lost the truth about what life is really about? The gates of credit have been opened up like no other time in our history. You can look around you and see that we are in trouble because of the consumer debt. We have been living the dream but on someone else’s buck. Over the last 10 to 15 years our banking system has been giving credit cards and mortgage loans to anyone that had a pulse. Now that we are in trouble what will happen?
Recession
A recession is when our economy has 6 or more months of economic down turn. A recession usually is the result of consumers not being confident about keeping their job or the investments they currently hold. If consumer confidence is down then everyone stops spending. In the US economy our markets go through what is called expansion and contractions. With the current economy and the extent of consumer debt I think it would be safe to say we are in a recession. There currently is a concern in general about the health of our economy which in return motivates families to stop spending.
Depression
A depression is when a recession gets really bad. I don’t think this will happen, but a recession is apparent in our current economy. While some markets are cooling other markets are dong well. Banking obviously is not doing well due to all the bad loans that were underwritten. The one lesson we can learn is to learn from past mistakes and not to make them again.
Anytime there is uncertainty in the market everyone gets scared. Our recommendation is simple; don’t buy anything on credit you cannot payback that same month. With the credit crunch that is going on, you can rest assure that getting that credit extended to you in the future will be a lot tougher. You will be required to have higher credit scores. We know there are times that we have to use credit to take care of emergencies. The lesson to learn is that credit is not for vacations, new clothes, eating out, and unnecessary stuff. You should only spend on credit what you can afford to pay back quickly. We need to be content with what we have. If your idea of the American dream is to get deeper and deeper in debt, you are fooling yourself. That is not what America is about. Yes you need to buy homes with loans, but don’t buy STUFF on credit.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.
Recession
A recession is when our economy has 6 or more months of economic down turn. A recession usually is the result of consumers not being confident about keeping their job or the investments they currently hold. If consumer confidence is down then everyone stops spending. In the US economy our markets go through what is called expansion and contractions. With the current economy and the extent of consumer debt I think it would be safe to say we are in a recession. There currently is a concern in general about the health of our economy which in return motivates families to stop spending.
Depression
A depression is when a recession gets really bad. I don’t think this will happen, but a recession is apparent in our current economy. While some markets are cooling other markets are dong well. Banking obviously is not doing well due to all the bad loans that were underwritten. The one lesson we can learn is to learn from past mistakes and not to make them again.
Anytime there is uncertainty in the market everyone gets scared. Our recommendation is simple; don’t buy anything on credit you cannot payback that same month. With the credit crunch that is going on, you can rest assure that getting that credit extended to you in the future will be a lot tougher. You will be required to have higher credit scores. We know there are times that we have to use credit to take care of emergencies. The lesson to learn is that credit is not for vacations, new clothes, eating out, and unnecessary stuff. You should only spend on credit what you can afford to pay back quickly. We need to be content with what we have. If your idea of the American dream is to get deeper and deeper in debt, you are fooling yourself. That is not what America is about. Yes you need to buy homes with loans, but don’t buy STUFF on credit.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.
Labels: credit, credit cards, loans
posted by Credit Guru at
8:52 PM
1 Comments:
Nice article. It seems now everybody has realised, that 1% interest rate in the beginning of century wasn't the best idea. I am selling life insurance in Canada and we had -0.1 GDP growth for 1Q of this year - that doesn't look very good, however, my business is still doing well...hope our countries will get over it soon...
Lorne
By
Toronto life insurance broker, At
July 1, 2008 12:38 PM
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