How Do We Solve The Debt Problem

Jan 5, 2015 by

car debtThis is a question that seems to come up every time the topic is at hand. Is there really anything we can do to help prevent the issues related to debt from happening in the future? The government has already put organizations and laws in place to protect consumers from debtors. What else can they do? Some people will come right out and tell you that they think that the government has done too much already; between the bank bailout (which, in the short term was okay), lending to the automotive sector and almost holding consumers hands when it comes to their mistakes.

 

Is Education the Answer?

Like many people, I am a huge advocate for education. Many people will tell you that it’s really important for us to be educated; knowledge really is power. It helps us to answer the hard questions of the world and gives us a way to figure out potential issues. Because of that, I think that education may be the key to us getting out of debt.

The debt problem can’t be solved through knowledge alone; people obviously have to apply what they know, or it’s useless. But, look, even our government officials don’t really get debt and how to balance a budget; they have to depend on raising the debt ceiling in order to be able to balance it, and honestly, that’s only going to work for so long before it hurts our economy even worse.

Interesting Watch:

Then Why Hasn’t It Happened?

We put so much energy into different types of education “markers” that we don’t always provide students with ways to get practical knowledge. Financial wellness classes are not required for high school students. Why not? Why can’t we have a half-year class on budgeting, how to balance a checkbook, and all the other things people should know before going out on their own? Many people don’t learn those sorts of things until they are well into their 20’s, and many times, they end up fumbling through it on their own.

Some people may claim that this whole thing is wishful thinking, but I truly think that educating our future leaders on how to properly use money and credit would be advantageous against our country’s fight against debt and weak economies. It may not solve the issue, but it may prevent some of the strain we’ve felt over the past decade for future generations. Healthy financial habits have to be cultivated in us, and if we do that early enough, we may be able to minimize the impact of debt.

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