Personal Debt And Its Effects On America Essay

1546 Words Nov 17th, 2016 7 Pages
In a country, where financial debt collides, everyone knows it, and everyone can see how much of a disaster it has become economically. In society, tragedy strikes someone financially daily. According to Merriam Webster’s online dictionary, the word debt is defined “as a duty or obligation to pay money under an express or implied agreement”. Even though some people think building a great credit score is rewarding, it has only caused significant amount of grief, because of various types of consumer debt.
Debt originates from a person 's over excursion of spending money. Individuals who are in debt are considered slaves, most of the income they bring in goes straight to the finance company. “American consumers owe 12.29 trillion dollars in debt” (Chey T, 2015). Personal debt is a gruesome, yet curable circumstance. Many people view a budget as a straightjacket that keeps them constrained. “40% of Americans do not have a budget system that they go through every month. Every month people spend over a thousand dollars over their original budget plan” according to Watch Economy (2011). A budgeting system is a simple way to put money where it needs to go. Write down every transaction in the checking account, register when the transaction takes place and keep a running balance. Keep track of how much is in the account, which means keep a record of the spending. In order to get ahead of the game start creating a budget a couple of weeks prior to a new month. The point of a budget is…

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