Today I have uncovered a string of bad figures about the American public that isn't something that would make any of us proud. We are setting records for credit card debt, we are under-saved and thus under-prepared for an emergency and job losses in older workers increase the chances of heart attacks and strokes (see above). Those figures make me wonder why I got up this morning. The sad thing is the economy is just beginning to slow, which could accelerate these figures. The sadder thought is all of this could be avoided by every home owner.
Americans are pulling out the plastic faster than a gun slinger in the old west who caught a poker dealer dealing from the bottom of the deck. The average consumer has $7800 in credit card debt and that is continuing to rise. It is a figure that I thought would actually be higher as the average analysis I do for those who write to me @ MortgageMinuteGuy.com have about $30,000 to $49,000 in credit card debt. Many approach or exceed $100,000 in debt! Could you imagine! How do they sleep?
The second dubious record has to do with reserves. The conservative financial approach is to have six months expenses in liquid reserves to ride out any storm, layoff or emergency. Today it was announced that only 4 out of 10 Americans have three months reserves, half of the conservation approach. It could be said that only 2 out of every American is really prepared for impending crisis.
One of the results of the two statistics above is that older workers over 50, who get laid off or fired, have double the chance of a heart attack or stroke. Is there any wonder why that figure appears? Without sufficient reserves and mountains of debt I am not surprised that everyone's chances for serious illness isn't increased.
The saddest part of this whole discussion is it needn't be. If you own a home we can help you as we have helped thousands of others by giving you a financial overhaul. In most cases we can take your short term debt and refinance it into your mortgage and accomplish the following:
1. Lower your payment
2. Create sufficient reserves
3. Rid you of all debt but your home mortgage
4. In a lot of cases shorten your amortization.
The net result is the credit card debt is gone, the reserves are established and the health risk is minimized. Call us at Manhattan West at 949-5553 or write to me @ MortgageMinuteGuy.com. If we can visualize the problem we certainly can provide the solution.
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.