It seems that as every year passes Americans have gone deeper and deeper into debt. Most of our grandparents would roll over in their grave if they knew the financial situation that we have gotten ourselves into in this country. In the past, everyone paid cash for everything. Saving up for that special occasion or present was a virtue and made it that much more special. Ever since the 1970s, our society has learned that why wait when you can have it now just by swiping that piece of plastic. Now, after years of brainwashing US citizens into living on credit we are in a quandary with no way out. It was recently reported that the average American at the end of 2011 has $15,799 in credit card debt. Considering the average person makes only about $35,000 a year this is becoming a huge problem. Outside of winning the lotto, the only way anyone has a hope of becoming debt-free is by filing bankruptcy. Did you say, Although it doesn’t work in every situation, if it doesn’t make you completely debt-free, it will put you on the road.
As the annual debt numbers came in, one disturbing fact showed up in the group. This was the indebtedness of a young person after graduating college. In the report had stated the average college graduate leaves school with $25,000 in debt. You can see how this is a problem with the United States current job market. It seems, the credit industry has addicted our young people to charging as a way of life. It seems that many of these young adults are going to find themselves sitting in front of a bankruptcy attorney asking, how did this happen? Currently, the United States is in debt to the tune of $16 trillion and when you consider that is about the same as our GDP, we are now in debt 100% of GDP. In the news, we can’t help but hear about the problems that are going on in Greece. Their debt to GDP ratio is 128%. It doesn’t sound like we are too far off and if we as a country don’t start making some drastic cuts we will end up just like Greece. If education starts at home then we should be teaching our children of how to be responsible with our finances and how being debt-free is something to be proud of. If it comes down to it, filing bankruptcy might be the best solution to get out from under crippling debt. Most Americans have become complacent and content with kicking the can down the road making minimum payments. It’s time to call a bankruptcy attorney and see how our grandparents really lived.