This is a guest post by Mark Asbell, who recently became debt-free following the principles of I Was Broke. Now I’m Not.
The US National Debt has increased by $84,414,120,840 since our last update in August 2011. Another month, another BILLION DOLLARS IN THE HOLE.
National Debt as of 9/14/2011
When I was going broke I’ll never forget the moment I realized the hole I was digging was getting over $400 deeper every single month. That doesn’t even count the large chunks of debt I got into in order to make big one time purchases. Just our normal monthly expenses were $400 per month more than our monthly income. At that time $400 a month was less than 1% of my annual income and my total debt was less than 4 times my annual income (including the mortgage). So I was able to keep getting more and more credit in order to sustain our deficit UNTIL… Lenders stopped giving me more credit. We were maxed out. We couldn’t pay what we already owed, so why would anyone lend me more?
The United States government is facing the same dilemma on a much grander scale. Their total debt is 7 times their annual income (Gross Domestic Product), and the hole is getting deeper by almost 4% of their annual income EVERY SINGLE MONTH. I’m no economist but I’ve been to broke and back and the US numbers are wayyy worse than mine were. I know what I had to do to dig out of the hole, so what does digging out of the hole look like for the government?
Mark Asbell is a key member of the I Was Broke. Now I’m Not. team and has a blog focused on helping couples strengthen both their finances and their marriage – www.markasbell.com – For Richer or Poorer.