Will We Ever Learn to Manage Debt?

Some very valuable debt management lessons. Right now, the government is going further into debt to help bail us out of our debt, ironic indeed! Either way, we end up paying interest on debt.

 The Mess That Greenspan Made


27 Responses to “Will We Ever Learn to Manage Debt?”

  1. 1 Rafael Barrera April 8, 2009 at 10:44 AM

    A perfect example of what greenspan has done to our financial economy. He has got to go.

  2. 2 Rafael Barrera April 8, 2009 at 10:45 AM

    We went from defensive lending and did a 180 turn to offensive and look where it has got us today. just terrible.

  3. 3 On the Money April 8, 2009 at 12:17 PM

    If the Government was an individual, everyone would agree how irresponsible this all is!

  4. 4 AlexBryant/Econ101 April 13, 2009 at 4:36 PM

    Instead of a bail out, which puts us in to debt to get us out of debt, we should take care of the debt. congress just likes to waste time, they still get payed.

  5. 5 Andrea Nemeth April 15, 2009 at 11:23 AM

    Its sad when our own government has to help us out of our own debt. we could not figure out on our own how to stop our own debt. so instead of working to pull our government out of debt we are pulling both ourselves deeper into it.

  6. 6 Linda Villasenor April 20, 2009 at 1:01 PM

    The government may be borrowing lots of money to give to companies and going more in debt but it isn’t going into debt to get luxuries, instead it’s trying stimulate our economy by giving businesses more money so they can sustain the workers and even create more jobs. If people have jobs they will spend money which will cause our economy to get better.

  7. 7 Noe Pate April 21, 2009 at 1:33 AM

    Isn’t this just common sense? By the way I like the patronizing tone. Please don’t mistake me I fully agree with the article maybe a shred of new information would be refreshing.

  8. 8 Hannibal April 21, 2009 at 10:19 PM

    It’s funny to see the reactions to this article because it seems that so many people are clueless about their finances. Why should the government have to pay (not just literally) for individuals and their irresponsibility? Of course the government needs to help with the bail out and lend government loans to banks with lower interest rates if they want to help the economy. Of course you need to be responsible and the reason we are in this mess is because people are greedy and thought they could afford more than what they really could. The point is, how else can the government help? It’s not that they are lazy, but good rates and good plans are for people who are good with their finances. People really need to think if they can afford it before they consider a credit card or working on their mortgage.

  9. 9 Claudio M Ramirez April 22, 2009 at 3:15 PM

    Is is ironic that the government is bailing out entities to get out of debt, when all its doing is gettin them even more in debt! I kinda compare it to the forclosure mortgage crisis, when you saw families taking out more loans to pay off there existing loans! Ironic and sad…

  10. 10 Arnulfo Solorio April 22, 2009 at 5:07 PM

    Hi all,
    it is interesting to see how easy most of us get and got in debt. I strongly believe that it is our mentality of spending and using our credit cards. We also have the idea that if we make twenty thousand per year,however we ended up spending twenty five. This puts us in debt with five thousand for the next year. I believe we abuse our credit due to our bad spending havits. For some of us this is what we need in order to wake up and smell the coffee. Some of us wait until someone else takes our credit cards away and file for chapter ?. I ask myself in a good note, why would the government behave different than us? There are people just like us with the same mentality or perhaps in this case a little worse.

  11. 11 LEONARDO SANCHEZ ECON 101 April 23, 2009 at 1:53 PM

    Valuable Lessons About Debt


    Why should our goverment pay our debts? Its our fault for getting in debt in the 1st place! We went that extra mile and

    bought that car we couldnt afford years later! Yes this maybe other persons fault but one should remember that our government

    is here to help there fellow citizens! Im i saying the government is doing good? No, but what is the goverment suppose

    to do? Stand back and watch the fir works display of our economy? he government helps everyway it can becasue at the end

    of the day we are going to pay them back through taxes and interests.

  12. 12 Andrew Curry April 23, 2009 at 5:03 PM

    Ha I find it amusing that in order to get us “out” of debt we actually increase our debt! It is ironic. doesnt sound like our government went about the best plan of action to tackle this issue.

  13. 13 Marilyn Monroe April 24, 2009 at 9:07 AM

    It is confusing that we are in debt but we are increasing our debt even more to get out of debt. Something just does not make sense. Why do we insist on bailing out companies that will eventually go bankrupt? Car companies are constantly asking for more money because they are not able to stay stable with the lack of car sales. Car dealerships are closing down in every direction. Stop giving money to businesses that should be shut down because they are wasting our money.

  14. 14 Nancy Moussa April 26, 2009 at 3:37 PM

    I think that our government needs to come up with a better way to get us out of debt. Because increasing our debt is not working. We drug ourselves into this problem knowing it would happen, now we need to find our way out.

  15. 15 Carl Hernandez April 26, 2009 at 8:32 PM

    I dont believe we will be able to manage debt at the rate we are going right now especially when the government is keeping interest rates low, this just makes people buy stuff that they cant afford by charging it and never paying it back. This nation is a nation that is custom to consuming rather than saving. The U.S is one of the most debited country right now because we borrow all our money from countries like China and Saudi Arabia. The government needs to find a better resolution.

  16. 16 lalves May 3, 2009 at 7:46 AM

    As of right now I don’t agree with the way the government is handling the current economic situation. For example, by sending out stimulus checks which really did nothing for each individual household, tremendously increased the nation debt. It seems like it is so easy for the government to lend out money and spend it when it is the people who have to pay in the form of higher taxes. I wonder how the recession would have turned out if the government would have played a small role and let the free market work it out.

  17. 17 Lucas Tirelli May 9, 2009 at 9:28 AM

    Before the start of the recession, almost anyone could borrow money and have debts. Today, it is very hard to get a loan, because financial institutions did not get all their money back from their loans. So they cannot function, and the government has to help them. America is known to be the country of consumption, but it should also learn to manage its debts and not give money to anyone for anything.

  18. 18 Emily Bonzi May 9, 2009 at 2:47 PM

    Considering how much debt we have a accumulated, I am find it a daunting task to even consider that it ever is eliminated. Managing debt at this point is beyond just management. A complete reevevalution of how debt is dealt with needs to be accessed and major changes are needed.

  19. 19 Tom Jones May 11, 2009 at 10:53 AM

    The use of credit cards and taking loans out to purchase a car put this country deeper into a debt. Credit cards could not be paid off because a person can buy a product for 100 bucks and pay 10 dollars a month. Eventually this can be paid off but it takes a long time in which all the debt around the world continues to add up. The loans that the banks give out to buy a car could turn out to be bad loans because people may not pay them or pay them off late

  20. 20 Andrew May 12, 2009 at 12:59 PM

    America itself is a country that is based on debt. Before America, people always wanted cash for things when shopping. Giving people loans or credits wasn’t the norm and was discouraged. America would have to have drastic changes if we are ever to resolve our national debt. How many people today could live without creditcards, checkbooks and other supplies? I agree that these do help many Americans afford stuff easier, but debt will always be an inherent part of America.

  21. 21 Nirbhik Trehan May 13, 2009 at 10:19 PM

    i feel it is not good for our country to pay out our debt as our country would be in more debt and the current debt rate of US are alarming. We also need to solve our problems ourselves and not depend on government as we can make this as a habit which is ultimately not good for us as well as for our country

  22. 22 Michelle V May 16, 2009 at 7:49 PM

    I think that paying off debt with more debt is ridiculous. I mean why do we want to get our country further into debt? I just don’t see the point of it. People need to manage their money and learn not to spend on impulsive type items that they cannot afford. Living in debt is something that I know I don’t want to do, I view paying off debt like paying for a dead horse. I never want to pay something off that I’ve already gotten all of my enjoyment out of. People need to learn to be independent and not always look to the government to bail them out when there are problems.

  23. 23 Cole Scharton May 17, 2009 at 12:05 PM

    Debt seems never-ending. I agree, very ironic that our government is taking on debt to cover our debt. That was the only real solution, which is sad. I would expect people to know their own capabilities of managing debt, perhaps a required course in high school???? Regardless, we are in the predicament we are in, and there isn’t much to do about it other than to try and educate ourselves to not let it happen again. Paying interest only loans gets no capital in the asset, so we have nothing to sell in an emergency, don’t get more credit cards than you can manage, and only use credit cards for the bonuses offered by them (miles, points, etc) and be able to pay any amount you put on them by the time you get home, save money so you can cover your expenses for 6 months with no income, incase you become unemployed. We need to take responsibility for our own finances, and not rely on the government to bail us out, putting them in debt, which we will all have to pay off later, with interest!

  24. 24 Britany Linton May 17, 2009 at 7:17 PM

    we seem to be making the same mistakes with credit cards, automobiles, and houses. Its funny how as children we are taught to learn from our mistakes and not make the same mistake again. Why can’t we do that with our debt? I don’t think people understand that this constant debt we are in is effecting even those who aren’t in debt. It needs to stop and our government needs to figure it out. They shouldn’t be the ones trying to get us out of debt by causing more debt. It’s annoying.

  25. 25 Leonardo Rios Ecom 101 May 18, 2009 at 10:20 AM

    I belive that their needs to be more rules for loan and any type of borroing money. the goverment should not be borroing more money from other country because is not really helping. now they are more in dedpt just like we are and we are still going to pay for it later with more taxes.

  26. 26 Santi Orona May 18, 2009 at 10:01 PM

    It is humorous and yet discouraging to see how our government tried to get out of debt. Many individuals use the same methods to get out of debt. However, they do not realize that their actions are actually digging a bigger hole. We need to change our policy to put our economy on the right track.

  27. 27 Anna Chkhikvishvili December 6, 2009 at 8:21 PM

    Unfortunately i dont think that we will ever be able to manage our debt because we are in a crisis and what are most of the people doing? Spending more money, thats what. We say to one another i cant believe it has gotten so bad but then turn around and buy something that does not need to be bought. Like another sweater, or another 50 dollar purse, or another car that is only used for special occasion. All i am saying is that people say one thing but then do something else so it is hard to believe that we will ever be able to manage our debt.

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