If you have been following the upcoming 2016 presidential election at all,
you have likely heard about the rising national debt as being one of the
main topics of debate. Since the year 2000, the country’s debt has
skyrocketed by $5.7 trillion to a staggering $19.5 trillion – more
than three times as much debt as the total amount of debt the country
had accrued since its inception in 1776. As economists, hedge fund managers,
and budget directors warn of an impending collapse, should the average
American be worried? In short, yes.
Unfortunately, many people remain unaware of the consequences that are
sure to come as a result of wasteful government spending. Debt is, in
essence, borrowing prosperity from the future only to be paid back at
a later date. Like the old adage goes, there is no such thing as a free
lunch. Historically, any accelerating growth in debt in any area eventually
leads to a serious reversal or crash to where the bubble first started.
Generally speaking, the sooner it happens, the shorter the corrective
period tends to be. Unfortunately, many banks have used all of the means
at their disposal to attempt to postpone the impending collapse, creating
more debt and devaluing the purchasing power of the dollar to abysmal
levels, worsening the problem and setting the stage for a more severe
crash. Every dollar that was borrowed must be paid back at some point
– the only question is when.
Here are a few facts and statistics courtesy of
Forbes magazine which put the nation’s financial standing in perspective:
- The dollar’s purchasing power has been inflated away by roughly 97%
- Real wages of working Americans have not advanced since 1971
- The homeownership rate of Americans in 2015 was the lowest it had been
- The national debt has increased by 242% since 2000.
How Can I Prepare?
Given the current economic outlook, it is imperative that individuals take
certain steps to prepare themselves financially. To make sure your assets
and interests are guarded in the event of economic collapse, it is important
you do the following:
Start an emergency fund: Save up enough to cover at least six months of expenses in your emergency
fund. Keep this money separate and do not spend it unless there is an
Have cash on hand: Depending on where you have it, it may be difficult to liquidate money
in your emergency fund in the event of a financial crisis. Have cash in
an easily accessible location to tide you over.
Get out of debt: A financial collapse usually causes many people to lose their jobs and
homes. Prepare for this possibility by making a plan to get out of debt
as quickly as possible. This way, if you lose your job, you will still
have a means of paying your bills.
At Albaugh Law Firm, our top-rated St. Augustine and Jacksonville debt
relief attorneys are passionate about helping individuals overcome their
struggles and get back on the road towards a financially secure future.
If you are struggling financially and are unsure how you will make ends
meet in the event of a financial crisis, we invite you to
contact our office today to discuss your legal options in full. Whether through
loan modifications, we have what it takes to eliminate your debt and ensure your best interests
Fill out an online form today to get started towards protecting your financial future.