Consumer debt is at an all-time high, and the recession is affecting most Americans. It’s important for consumers to examine their household balances.
According to reports, consumer debt amounts to nearly $2.6 trillion. This does not include real estate-secured debt. So how is this American consumer debt broken down? Revolving credit is defined as the following: “credit which is repeatedly available as periodic repayments are made.”Credit card debt is the most common form of revolving credits. The rest of the debt, at 63 percent, is drawn on loans that aren’t revolving. This category includes auto loans, student loans, personal loans and other loans.
Suze Orman shared helpful financial advice in an interview with SUCCESS Magazine. Time magazine named Orman one the top 100 most influential people on the planet for her Emmy-winning financial-advice program and best-selling books.
Orman’s focus: Prioritizing strong priorities and not forgetting the people involved. “The United States of America would not be in the situation it is right now if we had really cared about people first,”Orman. “We would have had the strength to say to them, ‘You can’t afford this mortgage; we’re not going to lend you money you’re never going to be able to pay back.'”
Most of the time, however, you won’t find someone to guide your financial choices. Orman’s advice is here to heal your piggy bank.
– Do not buy anything unless you have the cash. You should not buy anything on credit unless it is clear that you can afford the bill.
– Do not expand your business until you have the funds. It might be more sensible to save money and stay small, especially in difficult times.
– People are the key to all things. Money can’t do everything without them. Ensure that your decisions benefit and not harm the people involved.
– Take the time to think about your money and what it is doing for you. You don’t have to know why money is in one account. Do your research to discover how you can grow your money without risking your savings. Do not accept suggestions from brokers without fully understanding their reasoning.
Subscribe to SUCCESS Magazine at www.SUCCESSMagazine.com for additional success tips and ideas www.SUCCESS.com.