The Credit Revolution

Whether the loans are a mortgage loan, a car loan, a school loan, unsecured credit card indebtedness, large personal loans for furniture, appliances, jewelry, or loan consolidation or equity loans. The $30,000.00 ( 40% ) figure is very conservative and more than likely, most households earning $75,000.00 pay between $40,000.00 and $45,000.00 a year to cover all of their interest and government taxation. You may not have a mortgage because you rent or lease, and you may not have a car loan because you lease your vehicle. If that is the case, then you actually pay more than the above referenced amounts without having either of those loans. HOW IS THAT POSSIBLE ? The answer to that question reflects most things that have to do with depending too much on credit… it’s a unseen charge. If you are leasing a car or renting a home, than the person or business entity that you are leasing or renting from is paying those interest and tax charges, then passing them on to you along with handling fees. Today, more than ever in our nation’s history, there is a “CREDIT ADDICTION CRISIS” that has a firm grip on its citizens. Congress has frivolously voted our national debt up to exceed $36-Trillion and that amount climbs by the second. Student loan debt is near $2-Trillion with delinquent accounts growing monthly, and credit card debt exceeds $1.4-Trillion, and is climbing as Americans are using credit cards to deal with the inflation that is caused by the $36-plus trillion national debt. Add to all of that, that mortgage interest rates hover around 7%, vehicle loan interest rates range between 8.8 and 10%, and although credit card interest rates average 23.8%, they have grown to reach heights as high as 29%. The American Dream is leaving middle class America faster than their manufacturing jobs are being out sourced to other nations.

THE CURE FOR AMERICA’S CREDIT ADDICTION !

Credit Addiction is derived in most cases, from the desire of having as much “instant gratification” as you can get. This is in place of implementing more productive forms of “delayed gratification” for a foundation to live the American Dream. The mass marketing promotion of instant gratification has provided the American public; out of control online gambling; out of control use of prescription drugs; out of control usage of alcohol; out of control self directing investing; out of control sexual predators; and most of all, the out of control character of Americans avoiding financial responsibility. All of the above referenced irresponsible behavior comes down to lacking the discipline to do what’s obviously right. Discipline is an obvious principle to meet the consistency that is necessary when utilizing compound interest as the cure for owing more interest and taxes annually than what you would earn in interest within a year. The simple cure is to learn how to manage a formula to compound interest from simple everyday investible items that will earn a small incremental sum of interest that can mathematically grow to a large financial gain. This becomes a cure for the above referenced out of control problems, which when unattended will produce a destructive outcome with family, friends, and work relationships. The addition of discipline to a fifth grade mathematical equation can provide a winning outcome.