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