• Do We Need More Debt in 2009?

    I am furious today to see the headline article on money.cnn.com:
    A $2 trillion bet on powering America

    I mean, how dumb can you be? It seems that the U.S. federal government is really gasping for air right now.

    The U.S. government is borrowing like crazy to stimulate the economy. That sends a direct message to the consumer that it's good to borrow, and that it's necessary to borrow.

    In this video I give three personal finance scenarios about why people shouldn't borrow right now.

    It is my strong opinion that the government should not be encouraging people to borrow... that's why the economy is in the position it's in. borrowing more means putting people under more pressure.



    Please do drop by youtube and rate my video, and comment on it.

    VIDEO NOTES:
    The U.S. government is taking on trillions of dollars in debt
    They're encouraging consumers to take on debt

    Why is this wrong?

      3 scenarios that people generally face with the personal finances.

    1. Let's say you've got $250,000 in cash and no debt
      or even $10,000 in cash...
      Would you use credit ever?
      How would you feel?

    2. You've got $10,000 in cash and $30,000 in debt
      This is alright, as long as you don't lose your job
      and use up your reserves


    3. You've got $0 in cash and $30,000 in debt
      Now you're worried because you may have problems if you lose your job etc

    BIG QUESTION
    In any of these scenarios should you be taking on more debt?

    Discuss this subject here:
    Do we need more debt?


 
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3 Comments
On Jan 16, 2009, Debt Free Advisor Said:
Those who are aware about the present financial situation they will never go for any further borrow. As u said if us govt. are borrowing so much it will generate a negative impact to the us people.
And we all know one thing that so much debt was the major reason behind the 2008 financial crisis.
So, i completely agree with you that right now we need to avoid the borrow. Only this thing will make us financially stable little bit.
Thanks for sharing this post and video. It is really very informative.
On Jan 15, 2009, Monty Loree Said:
Personalmoneystore.com is a paydayloan site... Can you explain how that is a good resource?

It's pretty expensive credit.
On Jan 15, 2009, Cole U Said:
A lot of people got on the ball with debt consolidation, and many took out a payday loan to help them through lean times and to avoid bank fees. Financial planning is on a lot of people's minds as they are setting New Year's resolutions. Dips in the economy has gotten a lot of people thinking about money saving tips to get a little extra cash in their hands. They were also on the lookout for advice on how to handle their finances a little better, how to avoid having to take out a payday loan and how to prepare for things like the awful contemplation of unemployment – which has hit over 2.5 million more people last year, and some money management tips certainly can help anyone out. There are numerous sources for good financial advice, like Personalmoneystore.com, and access to the advice on the website is completely free to anyone.

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