On the one hand, we are told that over-spending got our economy into this mess.  We bought houses we could not afford.  We spent money we did not have.  On the other hand, we are being told that we must bail out the banks so that they can start lending again!  So if they want the banks to loan money, they want people to borrow it.  So which is it?

I am not going to get into the politics of all this mess.  Nor I am going to talk about the macro-economic issues regarding consumer credit.  I will say though that even though some people in Washington think that having tons of available credit for Americans is part of the solution, it is important to really evaluate your own life plans and do what is best for you.

So even though you may not know what exactly a “credit crunch” is and why it is apparently vital that we fix it, these issues do have an affect on you. 

Americans were caught in a culture of it is okay to charge things now and pay them off later.  As a matter of fact, everyone does it and since it is available then it is probably the best thing to do.  However, many people are learning the hard way that this is not the case.  When you put everything on credit you are taking control out of your hands and putting it in the hands of the banks and lending institutions.  When the banks fail, it has dramatic effects on your day to day life. 

Now, if the bank wants to raise your interest rate 3 times what is was, they can.  There is nothing you can do about it.  If the bank wants to cut your credit line they can.  These types of changes can have catastrophic effects on the cash flow for the average American family. 

However, there are ways to find debt relief.  This site will explore some of those methods.  It is important to take back control of your finances and not be dependent on banks, financial institutions, or the government anymore!  After all, you have to look out for number one!