Presented by Daniel Toriola
Credit cards are very useful for those people who can manage their finances properly. Nowadays even airlines
offer credit cards to their clients. However, credit cards are not to be used to purchase something you cannot
afford.
Click here to know more
Affordable Business Web Hosting - Only 41 cents / month Onwards. Plus $5200 Worth Of Freebies! Nobody Can
Beat Our Rates. Period.
Click here to know more
Consumer Debt, Bad For America
By Jim Kesel
Consumer debt is debt that is accrued by purchasing consumer products as opposed to investment
debt that is used to make investments. The vast majority of consumer debt in American is in the form
of credit card debt. Consumer debt is fast approaching the one trillion dollar (1,000,000,000,000.00)
mark. Credit card debt makes up about 880 billion dollars of this amount. As the rate of debt has
increased the rate of individual savings has declined dramatically. A great many Americans have no
retirement savings and are not investing in any retirement plan where they are employed.
Many people feel there is nothing wrong with high levels of consumer debt and some leading
economists, business and political leaders actually have encouraged it. However the people that are
encouraging excessive debt appear to profit the most from it. This conflict of interest means there is a
genuine lack of credibility to these reports.
Even the FICO or credit score is designed to increase the amount of debt. The more debt you have
and the longer you have been in debt all will raise your credit score. Something is wrong with this
system. While many people are constantly trying to increase their credit score many very wealthy
people have credit scores of 0, thats right zero. What wrong with this picture.
No matter what you have read or how much you have been brainwashed, debt is a bad thing. You will
never become wealthy if you are carrying any form of consumer debt especially if it is credit card debt.
If you want to be wealthy then you have to live debt free.