About once a week someone comes on my TV and tells me that America’s debt is catastrophic, that China is going to take over our country since they own so much of our debt, and that we are all going to die. As always, what’s actually going on with America’s debt is a little bit more complicated than what fits in a news segment.
I believe there is no such thing as “bad credit,” and we should instead be focusing on “bad credit utilization.” Credit cards can be a really helpful tool for people to finance large purchases with more manageable monthly payments. When people mishandle credit, by carrying balances every month or missing payments, they create huge roadblocks to their financial goals.
So the $1 Trillion dollars worth of credit card debt we’re carrying as a country that this article details, is not 100% a bad thing. People are staying in their homes longer, buying bigger purchases or making big home improvements, which are all GOOD things and signs of a HEALTHY economy. Having said that, that much debt is obviously not a good thing. If you’re struggling with credit card debt, we might be able to help with a cash-out refinance! Give me a call today!