With recent financial disasters in the banking industry, worldwide panic regarding savings, assets, and retirement accounts seem to be on most everyone's mind, as investments lose value, individuals decide to sell off stocks and cut their losses, or hold on to stocks and wait out the problems. A lot of people are not waiting out the market and declines have advanced meaning this could be a very long wait until the markets rally.
Over the course of the last few weeks, the reversal of word meanings in regard to monetary and banking practices have driven the dialogue of the credit crisis away from the debt subject. Debt plus more debt equals yet, more debt. Credit issued when people have savings, collateral or co-signers is one thing, credit issued without the proper credentials is another. For the main dialogue, the American people listen as someone explains the 'credit crisis' when this is truly a debt disaster. This is what I would call misleading media or misleading information through media sources.
Debt is created by credit. Once upon a time, credit was issued if you were 'credit worthy' and 'debt' was the one thing people had, and wanted to get rid of. Paying off a loan, car or home was celebrated. Debt was not easily come by, no one really liked it and if they had it, for certain they wanted to get rid of it.
For those Americans who have lived above their means, or perhaps had circumstances beyond their control, bankruptcy was the solution for unmanageable debt. Wiping the slate clean and starting all over with a fresh start was the legal remedy and most practical solution. Deep debt, however painful, could be managed by making higher payments, sacrificing new purchases, living not only within your means, but well below your means. And paying out of debt, means a time without saving.
With credit cards, revolving credit accounts, easy approval for loans, or mortgages, it is not difficult to see how the debts of many have created the problems for all.
Looking back over consumer lures into debt, it seems as if the credit card industry has advertising campaigns created to seduce credit card users into thinking the 'charge' experience is the closest thing most will experinence like a Hollywood connection. The credit card glamorization and seduction marketing development was one of the most successful commercial endeavors on network television. And for those who wanted the experience, the instant credit card purchase, the car, the boat and perhaps the home, they could not afford, the created debt is not the terminology used for loan marketing, car sales, credit card ads or home mortgages.
Credit scores, credit reports, and other credit bureau and credit review information might not have been so successful in it's endeavor had it been called 'debt'. It is doubtful with the debt image of the past, any of these marketing techniques would have had any success at all had they been called Debt Cards, Debt Reports, Debt Scores, The Debt Bureau, or your Debt Review.
Unfortunately, the credit being issued at this time, might produce relief however, is not a solution for a long term positive results. The issuing of credit is the process for the creation of debt.
Debt is what we currently have and the issuance of credit or more credit into the system creates more debt. Debt added to more debt equals more debt. And Debt is the one thing most people need to get rid of, hold the credit, pay off the debt.
