National Debt compared to Your Houshold Debt

We have been hearing a lot about our National debt. Hardly anyone can imagine how much money that is. Some people do not realize how bad this is for our country either, so I show below some very interesting figures. I show what happens as you removed a bunch of the zeros, and pretend this is your household budget. I give an example of a low income family, as well as a high income family.

 

•        U.S. tax revenue: $ 2.15 trillion

•        Federal budget: $ 3.8 trillion

•        New debt: $ 1.65 trillion

•        National debt: $ 15 trillion

•        Recent budget cut: $ 38 billion

 

Now let's remove some zeros and pretend it’s your budget…

•        Your annual income:         $21,500

•        Your household spending: $38,000

•        New debt this year:           $16,500

•        Your credit card debt:      $150,000

•        Recent budget cut:                 $385

•         

Whenever unsecured debt is at a 1 to 1 ratio with annual income, the borrower is in serious trouble. With your business or in your personal life

When this ratio reaches a 2 to 1 level the problem intensifies to out-of-control trouble.

If you are somehow able to borrow to a 7 to 1 ratio, the problem becomes a runaway crisis.

You can see this is not good at all...

Now let’s add one zero…as for a high income family:

•        Your annual income:     $ 215,000

•        Your annual spending:  $ 380,000

•        New debt this year:       $165,000

•        Your credit card debt    $1,500000

•        Recent budget cut:              $3850

'nuff said.
Mr C

 

 

Comments

[isabelly]

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