Friday, October 31, 2008

Financial Responsibility for All

Corporations, governments, and individuals have received a loud wake-up call this year concerning debt and its effect on financial stability. The past history of excessive borrowing to meet present needs and obligations is simply a recipe for trouble. Unfortunately, our U.S. Government is not a very good educator on wise financial management as our total U.S. Government debt stands at nearly $10.5 Trillion and growing at over $3 Billion per day! State and local governments around the country are also experiencing debt problems.

It is time to live within our means. It is time to separate needs from wants. This certainly is true from an individual standpoint as well. Excessive credit card debt and high debt ratios are a direct reflection of living beyond the current financial abilities. Admittedly, living expenses have increased on food, fuel, and energy items. These rising living expenses have contributed to the rising debt levels on consumers.

Think wisely before adding new debt. Perhaps the emphasis should be on how to payoff or reduce the existing debt. If you have credit card debt, consider a Consolidation Loan from the Credit Union to lower your interest rate charges paid each month. If you have a vehicle financed somewhere else and are paying over 6-7% on that loan, consider refinancing with the Credit Union for a lower rate. There is nothing negative or derogatory about refinances. Saving money is a wise decision. All of our loan rates are posted on our web site. A Loan Calculator is also available on the web site to calculate how much you could save each month with a new loan from the Credit Union. If you save $25 per month on a monthly payment, that $25 can then be used to offset fuel or food costs.

Hopefully the country as a whole will realize the adverse effects of excessive debt and make the appropriate spending changes.

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