Browsing the archives for the debt tag

The Debt For Student Loan Threatens And Impacts The Us Economy To A Great Extent

The federal government of USA decided to grant loans to student in the year 1965, which is still continuing. The students were granted loans, so that they can study in the college and repay the loans when they find a job. However, it is this program that has turned out to be a pain in the neck in today’s economic condition of America. This is because it is these loans that are threatening the US economy. There are of course several reasons why such a situation has aroused today. A brief study will indicate the reason why the student loans are keeping the condition of the economy down.

Increased Rate Of Interest:

Recently, the rate of interest on the student loan has been increased to 6.8% from 3.4 %. This is indeed a huge rise, which has made it very difficult for the students to repay the loan.

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Americans Still Under The Burden Of Credit Card Debt

Almost all individuals in the U.S. are infected with the habit of making the indiscreet use of credit card that results in incurring them overwhelming credit card debt. According to the latest statistics of the U.S. Census Bureau, 2010, U.S. citizens have over $886 billion in credit card debt and the figure is expected to rise to $1.177 trillion. Thus, people in the U.S. are under knee-deep credit card debt and looking for a way to achieve debt relief.

Around millions of people spend beyond their means and get racked up with outstanding credit card debt. Due to this never ending burden of credit card debt, consumers ran into trouble when global financial markets rose and the housing market went down.

The latest research by credit card comparison website CardHub indicates that consumers are charging more and more on their credit cards.

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Looking Abroad For Answers To The U.S. Debt Crisis

Washington, D.C., August 20, 2011 – Just recently, the United States found itself on the verge of financial crisis. Both parties have proposed several plans, yet both houses of Congress and the President took until the last minute to agree on a solution. Moody has even announced that it is unlikely that any plan will prevent a downgrade.

While an immediate crisis looms, the U.S. also finds itself facing a crossroads about what type of nation it will be in the long-term.

The U.S. could end up as a nation that no longer has any money to borrow. It may have to beg international organizations for a bailout. The U.S. could run out of money to fund essential parts of its government and lead to massive unrest amongst its citizens. America could end up like Greece.

The Coming Chaos

America is about to be destroyed by debt. And we’re acting like it’s business as usual. In the push to resolve America’s impending debt crisis, much has been done to ensure politically favorable positions for those engaged in the debt talks, and the possibility of a default has been addressed in largely academic terms, with complete disregard for the gruesome realities a default implies. Our leaders are living in a fantasy world, indulging in partisan gamesmanship, concerned only about their re-elections. The time has come for our leaders to be Americans first, and do what needs to be done to save us from collapse.

Default has been discussed as a valid option, even by some conservative writers. But its effects will be cataclysmic. Default must not be viewed in either political or strategic terms. Default spells one word for America:

Washington Fails Us Once Again By Proposing The Largest Debt Increase In US History

President Obama, Speaker Boehner, and other so-called leaders are taking a victory lap today as they announce a possible deal that would “save life as we know it”.

This incredible “life saving” deal would increase our debt limit by up to $2.4 trillion, which would be the largest increase in the debt limit in U.S. history by a margin of half a trillion dollars, according to records published by the Government Accountability Office and the Congressional Research Service.

If you’re wondering about the last record setting debt limit increase, it happened just last year when President Obama had our debt limited raised a mind-blowing $1.9 trillion dollars back in February of 2010. That was just a drop in the bucket compared to what they are hitting us with this time.

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