Why Debt Hurt the US Economy

Debt issues run rampant in the United States. In the early 21st century, the United States was really struggling with the economy and there were a lot of problems that came along. While credit had been easy to get during the 1990’s, people got a lot of credit and went into a lot of debt. People would use credit to pay for everything, from going to the emergency room Houston to getting their groceries from the store.

When we went through the Great Recession, people started to find that it was hard to pay the debts off in the first place. Banks struggled because the loans and other debts weren’t being paid off. That’s how the economy started to fall apart. Now that we’ve gotten that under control, the economy has picked up a lot. Now we’ve evened out because of policies that have helped those in debt to get treated fairly and figure things out.

Many people didn’t realize that their debt was suffocating them because they compared it to other people’s debt and saw that it was much smaller. The thing is, there are a few things to look out for with your debt in order to see if there’s an issue at hand.

  • Do you pay rotating minimum payments without getting anyway?
  • Is your debt load more than 20% of your annual income?
  • Do you only use credit to pay?
  • Do you know how much you actually owe?
  • Do you have any savings?
  • Are you borrowing a lot of cash?

If any or all of these apply to you, you may want to think about your debt and use of credit. There are a lot of resources out there that can help you to straighten it out and get help for it if you need it.