Is America Charging Too Much On Its Credit Card?

MoneyTips

Excessive Borrowing – Bad for Countries As Well As People?

If you continue to run a balance on your credit card every month, eventually your overspending will catch up with you. Collective interest charges will send you into a debt spiral – where you can't even pay off the accrued interest, much less the debt itself. You simply can't continue to spend more than you save every month.

You may respond, "Why not? America does it all the time!"

You'd be right – America has been in deficit spending for most of our lifetimes. Since World War II, when the deficit shot up to 29% of America's Gross Domestic Product (GDP), there have been only seven years where the government ran a surplus – and four of those years were in relatively recent times (1998-2001).

The current national debt – the summary of all of our deficits plus the accrued interest – is over $20....

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