So, what do you think? Is it over yet? Well, I wouldn't venture too far outside just to look around, and certainly not to look straight up. You might get smacked squarely in the face with a piece of that sky that's still falling!
Yes, the housing industry is still caught in the grips of its own plummet earthward. Homes listed for sale continue to languish on the market, while potential buyers continue to pass by rows of "For Sale" signs with only lukewarm, if any at all, interest. And with everyone who's even remotely associated with mortgages and housing bailing water for all they're worth, every reasonable indication seems to be pointing toward things continuing to get worse before they get better.
NetBank recently floated away belly-up, and several other small banks are in dire straits, meaning that this fiasco has finally decided not to limit itself only to mortgage companies and non-bank lenders, but has now widened its death grip to include federally regulated entities as well.
But let's take just a moment or two to look past the obvious elephant in the living room. Many, many people must resort to payday loans just to make ends meet. And what does that mean? Simply put, it means that debt is out of control.
Not just mortgage debt, but all kinds – government debt, business debt, and consumer debt. The United States is now the largest debtor nation on this planet, and perhaps even in the galaxy. The debtor lifestyle has been ingrained into our psyche for at least two generations now.
The "buy-now-pay-later" mentality permeates our society from the bottom to the top. Easier credit has brought about bigger houses (and mortgages to pay for them), bigger cars (also now carrying bigger payments), and bigger charge card bills. It only stands to reason that the piper would eventually demand payment!
The fact is that because the housing sector is such a huge part of our economy (and, correspondingly, the single-biggest debt and monthly payment that most people have), its implosion would necessarily cause the largest shock waves. But consider; if all of our other debt were not so hideously unrestrained, would the effects be the same? The debt consolidation industry (which, by the way, is now a multi-million-dollar marketplace) has been attempting to help us to dig out of our consumer debt woes, with varying degrees of success. At best, however, without treating the underlying infirmity, this fix is just a band-aid that will produce only temporary financial health.
What, then, can be done? We must realize that all meaningful change starts inwardly. We can't wait for government to legislate it. We must all work to get our own spending under control by changing our attitudes about our finances and our financial circumstances.
If your credit is still good, do all you can to keep it that way – and know that it's just as important for you to continue to spin wisely as it is for those whose credit has been mortally wounded. And speaking of which, if that's you, shake yourself into the realization that you don't have to just live with it.
Do something about it! Work to repair your credit. There are a number of credit cards for bad credit available; get one and begin to rebuild your finances by using it judiciously. If your debt is choking off your oxygen supply, considered a debt settlement plan to alleviate the burden.
The point here is that we must all combat debt on an individual basis, not only by working to eliminate what we owe but also by changing the attitude of our financial lifestyle. We must get and maintain control of our money, not the other way around. All of our outward woes are only symptoms of the inward problem.
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