Reply #11: On the credit, I am so alarmed by the number of TEENS... [View All]

[jswordy]

...who carry forward card balances these days. The companies hit them up right at age 18, and have them sunk into debt by 19. My own niece feel into that trap. Luckily, she worked hard and got out of it.

I am telling you now, there are some very bad economic times around the corner, and anyone who is carrying a big debt load is going to suffer mercilessly, especially given the new bankruptcy laws.

My advice to everyone is to curtail discretionary spending and to pay off your debt as fast as you can, starting now. Second, try to save something. For example, instead of eating out, put that restaurant money into a savings account. Instead of mortgaging the future to buy now, cut back on the now to build a future.

We are teetering as a nation on the brink of a recession like we have not seen since the late '70s-early '80s. Many economists feel it is already in the cards. Those who prepare for it now will be glad they did if it does come to pass.

If it does not (which I doubt, but...), then you will still be way ahead of the game by PAYING YOURSELF FIRST through a savings plan, and paying off what you owe others. That is the foundation of wealth.

If our country did this as a country, we would not be facing such a big correction in our economic future. Sigh. But at least we can do it as individuals.

Believe me, debt-free is a great place to be!