The federal government has a web site to help Americans with their debt. It’s called “Knee Deep in Debt“. I can’t think of a better place to go for advice when you’re knee deep in debt than an organization that is over its head in debt.
It gets better. According to the site, the first step to eliminating debt is to set a budget. From my experience, this is great advice. Dave Ramsey says the same thing. The thing is, the last time we did a budget at our house was 21 days ago, before the month of January started. The last time the federal government did a budget was over 800 days ago.
Next up, sites on healthy living run by fat smokers and tips on living clean and sober by alcoholic meth lab operators who supplement their income running product from pill mills.
Remember this bit of wisdom from the gov’ment:
Your financial situation doesn’t have to go from bad to worse.
Wait…let me get this straight. Using this approach, if a person is facing extreme debt with collectors calling, cars and houses on the verge of being repo’d and foreclosed, and maxed out credit cards, these are the steps they should take to fix the problem:
Ask for higher limits on their cards
Demand a raise from their employer (at gunpoint if necessary)
Create a plan to spend the extra money from the raise and the newly available credit to raise their kids’ allowances, trade-in for a new car that gets better gas mileage (no need for cost analysis, right?), and buy some new clothes to interview for jobs that pay a much higher salary. They’ll get these interviews by leveraging the great references the current employer they just held up at gunpoint gave them.
Here’s another mind dump of thoughts on a few of the link worthy things I’ve read lately…enjoy!
Now you can buy a Kindle for $114! The gotcha here is that you have to be willing to look at ads and special offers. Still, I’m glad to see the price coming down one way or another. I still think the magic price for this device is $99. At least, that’s the price at which I’d bite.
Roth IRA: Time to retire Roth IRAs – Could not be more wrong. This guy needs to run the numbers, although I doubt he’d know where to start to do that. Roth IRAs and Traditional IRAs generate the exact same tax revenue if you make the assumption that the tax rate doesn’t change. But for the gov’ment, they get to have their candy now instead of waiting for you to retire. The upside for the account holder only comes if they end up in a higher tax bracket or tax rates rise across the board. Look where people have placed their bets.
Portugal, Illinois and Caterpillar – “The Portugese have decided to protest against mathematics….” That’s pretty much all you need to know. Of course, as Dave Ramsey likes to point out, if they’d been doing math they wouldn’t be in this mess.