What American Consumers Could Learn From Governmental Debt Relief (And Vice Versa)

Now that the amount of debt borrowed by the United States of America has passed thirteen figures – that’s just a little bit over ten trillion dollars – the severity of our government’s debt relief needs have grown too large to ignore. Separate from any political debate about the merits of particular budgetary strategies, we should all appreciate the enormity of the problem at hand and, rather than assign blame to any specific figures (whether elected officials or bureaucratic functionaries), focus on just how to go about effectively reducing the outrageous sums involved.

It’s a bit too easy to conflate the credit card debt woes plaguing the citizenry of the United States with the encircling economic predicament facing the government. Without question, the lapsed savings regimen and insatiable appetite for deficit spending infecting the American people has played its part in the larger economic crisis, but credit card debt relief remains a good sight easier to muster for even the poorest consumers barely able to avoid bankruptcy.

However, while our political leadership has rather greater responsibilities (cancelling a war because it’s financially unfeasible and unpopular isn’t exactly the same as cutting out cable channels) and diminished alternative solutions (regardless of the temptation, our president couldn’t call for debt settlement negotiation with the Chinese and has to rule out rather than just avoid bankruptcy protection), the general strategy isn’t all that disparate.

•Admit That A Problem Exists

With a federal deficit shaming the credit card debt sums of even the most reckless spendthrift, our fiduciary difficulties aren’t exactly a secret, but the magnitude of the record breaking sums owed to foreign countries has all but silenced the strain of economists insistently claiming that a sudden and near miraculous expansion would afford restitution absent any hard choices.

•Stay Within Budgetary Guidelines

Although the national budget – currently given extraordinary publicity by an administration determined to highlight transparency – would seemingly be least resistant to momentary whims, the underlying structure of the massive budgetary protocols do allow for endless forms of cheating. However, at the same point, regardless of the political repercussions within an electorate ever frightened of new taxes, suddenly broadening revenue streams remain far easier for countries than citizens.

•Prioritize Different Debts

The snowball technique has long been a staple credit card debt relief strategy of professional consumer finance counselors and other specialists paid to advise homeowners on whether or not to first eliminate the smallest sum or the highest interest account. Admittedly, the United States government hasn’t quite such liberties in determining which to sums to concentrate compensation focus, but there are specific areas of the national budget hemorrhaging money and those should be most quickly addressed to stem the flow.

•Break The Cycle

Much as governmental and household budget deficits may appear to be a direct response to changing societal pressures and fluctuating financial priorities, economists increasingly believe that these periods of borrowing and eventual debt relief are not necessarily vital to continued growth. If surpluses obtained during the relative boom times were not automatically spent (however tempting the investments), the resulting savings would provide a much need safety net to prevent men and nations alike from falling prey to monetary burdens when emergencies do inevitably occur.