The 'fiscal cliff ' is behind us for now!
All of us, being able to spend money, fuel the global economy. Making purchases is linked to the costs we have to pay for our basic needs. While incomes remain level, rising inflation, taxes and interest rates is not a good scenario.
Unfortunately, what is looming on the horizon is the need to rein in spending and pay down credit cards. Sounds reasonable to me, and a lot of T.V. programs and debt counselling services advise this. Even government officials are stressing the debt to income ratio is high and have implemented new mortgage qualification requirements.
Without any constructive solutions, it is easy to climb on the bandwagon and tell people not to buy and spend. It is my belief that the average citizen is using their credit to pay for emergent needs like medical, dental, veterinarian, vehicle and home maintenance. Saying they are irresponsible is easier than finding a solution.
Is there a solution, perhaps - keeping taxes and payroll deductions low - the government should not be providing social support, this function needs to be returned back to the family and the church - bank credit card ‘interest rates’ need to be regulated.
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