Christmas has come and gone and while most Americans have taken down the tree and cleaned up the mess, they've yet to evaluate the financial wreckage of another financed holiday season.
Reportedly shoppers in the U.S. racked up an average of $1,054 of debt over the 2020 Christmas season — an increase of 5% over last year. In fact, 44% of shoppers racked up more than $1,000 in holiday debt, while 5% accumulated more than $5,000 in debt. Go, Santa!
Bouncing back from those purchases won’t come as easy (for most people) as buying the gifts did, and paying off the doubt will outlast the holiday cheer by far...without a payoff plan, that is.
Based on a consumer survey, only half of those holiday spenders plan to repay the debt within 3 months — others (29%) said they need more than five months to pay it off - leading to interest on the credit card debt and growing balances. Like hamsters on a wheel, they'll keep throwing money at the...
No doubt real estate is a great investment, but long-gone are the days where prices soared overnight....a time when even a blind monkey could make a quick dollar on a good flip. But what happens when prices don't soar like you thought they would? Worse yet, what happens when they drop?
What goes up, must come down...including real estate, and it's for this very reason that it's a good idea to build your own equity as fast as you can instead of waiting for the market to build it for you. The idea of bringing money to the table to sell a house may not be familiar to YOU, but it's a common occurrence for people in need of selling when the market hasn't produced the gain sufficient to cover the cost of selling and/or closing.
People investing in the stock market understand that what goes up must (eventually) come down, while people investing in real estate never expect to get caught short. The stock market "resets" itself and the real estate...
Fortunately, most people in America are not penniless - but a whole lot of them are already broke and they just don't realize it, OR they just don't recognize the signs of looming disaster that will get them there faster than you can say "amen."
The average American has less than $1,000 in savings with no emergency plan in place. Instead of building up a savings account (or reducing debt), most people have a false sense of security as long as there is a little room left on a credit card to tap into when/if they need to. Does borrowing more money to pay against borrowed money make sense to you? That old saying "Robbing Peter to pay Paul" comes to mind.
Mishaps happen to everyone...death...disease...divorce...and when they do, the only thing that can possibly make the situation worse is having to deal with bills you can't pay or increasing debt while you charge-away your living expenses.
There is a way to prepare for an imminent disaster, but first,...