Comments on: Get Out of Debt: Back to Basics http://www.everyjoe.com/articles/get-out-of-debt-back-to-basics/ Sports News - Tech Reviews - Entertainment - Life Tips for EveryJoe Wed, 02 Dec 2009 08:35:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: miranda http://www.everyjoe.com/articles/get-out-of-debt-back-to-basics/comment-page-1/#comment-315443 miranda Mon, 06 Oct 2008 17:59:06 +0000 http://www.yieldingwealth.com/get-out-of-debt-back-to-basics/#comment-315443 You are correct, Brian. One of our biggest issues is consumer debt. Unfortunately, it will have to be the consumers who open their eyes, because the folks at the top make too much money to want to restrict credit to those who can actually afford it -- and they make much more by encouraging people to be in just enough debt that they have to keep making payments, but don't go under. The people at the top have no interest in a financially literate or practical populace. You are correct, Brian. One of our biggest issues is consumer debt. Unfortunately, it will have to be the consumers who open their eyes, because the folks at the top make too much money to want to restrict credit to those who can actually afford it — and they make much more by encouraging people to be in just enough debt that they have to keep making payments, but don’t go under. The people at the top have no interest in a financially literate or practical populace.

]]> By: Brian http://www.everyjoe.com/articles/get-out-of-debt-back-to-basics/comment-page-1/#comment-315437 Brian Mon, 06 Oct 2008 17:47:33 +0000 http://www.yieldingwealth.com/get-out-of-debt-back-to-basics/#comment-315437 Part of the reason the country is in this situation is consumer debt. This country is making more than any point in our nations history and not even coming close to saving more in the nations history. CEOs, businesses, and consumer took advantage of the housing bubble and it popped. Use this as a lesson and never let it happen again. Part of the reason the country is in this situation is consumer debt. This country is making more than any point in our nations history and not even coming close to saving more in the nations history. CEOs, businesses, and consumer took advantage of the housing bubble and it popped. Use this as a lesson and never let it happen again.

]]> By: miranda http://www.everyjoe.com/articles/get-out-of-debt-back-to-basics/comment-page-1/#comment-315438 miranda Mon, 06 Oct 2008 15:32:23 +0000 http://www.yieldingwealth.com/get-out-of-debt-back-to-basics/#comment-315438 I agree that there is credit that is necessary -- especially for small businesses. However, part of our problem has been a huge emphasis on materialism and personal credit to buy things that we don't necessarily need. Or to over-indulge in wants because personal credit has been exceptionally easy to come by. I agree that there is credit that is necessary — especially for small businesses. However, part of our problem has been a huge emphasis on materialism and personal credit to buy things that we don’t necessarily need. Or to over-indulge in wants because personal credit has been exceptionally easy to come by.

]]> By: Brian http://www.everyjoe.com/articles/get-out-of-debt-back-to-basics/comment-page-1/#comment-315436 Brian Mon, 06 Oct 2008 15:23:25 +0000 http://www.yieldingwealth.com/get-out-of-debt-back-to-basics/#comment-315436 Yes, we need a certain amount of credit/debt to run the modern economy. On an individual basis, some individuals have too much debt, but in reality, business require at least some credit. Take the example of the Mexican restaurant down the street. It depends on its supplier of fresh ingredients to permit the restaurant owner to pay at the end of the month. The supplier says, "Look, with the economy so dicey, I really need to you be able to pay me today." And the restaurant owner say, "The economy's been difficult lately and I don't have the savings. Right now, I need you to let me pay, say, at the beginning of next week because I do my best business over the weekend." The supplier says no dice. "I gotta family too, you know, so I don't have a choice but to sell to the big restaurant and/or Taco Bell across town because I know that they'll be around next week to pay me." Restaurant owner says, "Without fresh ingredients, I can't survive." This illustrates a microcosm of eventual jobs that could be lost. Will it happen? Maybe, maybe not. The economy is addicted to credit. Stopping any addict cold turkey may be successful, but it can be destructive. I don't think that most people want to take the chance on the level of destruction if the economy isn't weaned off some of its credit habit gracefully. Yes, we need a certain amount of credit/debt to run the modern economy. On an individual basis, some individuals have too much debt, but in reality, business require at least some credit.

Take the example of the Mexican restaurant down the street. It depends on its supplier of fresh ingredients to permit the restaurant owner to pay at the end of the month. The supplier says, “Look, with the economy so dicey, I really need to you be able to pay me today.” And the restaurant owner say, “The economy’s been difficult lately and I don’t have the savings. Right now, I need you to let me pay, say, at the beginning of next week because I do my best business over the weekend.” The supplier says no dice. “I gotta family too, you know, so I don’t have a choice but to sell to the big restaurant and/or Taco Bell across town because I know that they’ll be around next week to pay me.” Restaurant owner says, “Without fresh ingredients, I can’t survive.”

This illustrates a microcosm of eventual jobs that could be lost. Will it happen? Maybe, maybe not.

The economy is addicted to credit. Stopping any addict cold turkey may be successful, but it can be destructive. I don’t think that most people want to take the chance on the level of destruction if the economy isn’t weaned off some of its credit habit gracefully.

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