National DebtThe U.S. national debt stands at over $14 Trillion as of this writing. Just how much is $14 trillion? To put that in perspective, this astonishing figure equates to over $46,000 per resident in the United States today. Indeed, the U.S. national debt has become the proverbial 800 pound gorilla in the room that simply can no longer be ignored. Yet what can be done about this national debt, if anything? In this age of economic uncertainty, National Debt Relief Program advises both consumers and our government to begin taking steps to get their respective finances in order.
The U.S. national debt has reached a stage where the term “austerity” is likely to enter the country's lexicon. Austerity of course has become the term used to describe the raising of taxes and slashing of benefits (typically entitlement programs such as welfare and pensions), in order to pay down a country’s rising debt obligations. Such austerity measures have led to massive riots and protests in countries that have taken such steps to lower their national debt and balance their budgets.
As is to be expected, Republicans and Democrats on Capitol Hill continue to bicker, point the finger, and blame the other party for the rising national debt problem. Yet as staggeringly high as the current national debt is, the band aid fix being considered is to once again raise the legal debt limit. To pressure the situation, the Treasury Secretary is warning that failure to not do so could be catastrophic. Yet why the rush to raise the national debt? Is this really in anyone's best interest?
Some have argued that the U.S. national debt is and always will be, since national debt has existed back to the days of George Washington and the birth of our nation, rising and falling with eras of war and peace. Others have argued in the past that it is simply fiscally irresponsible to borrow today only to have our children and grandchildren bare the weight and responsibility of paying back this national debt. The fact is that the U.S. national debt has increased by over 50% since 2006, and now the day of reckoning is fast approaching. We and our generation shall be the ones to pay the the price of past fiscal irresponsibility.
National Debt ReliefTo review, the national debt at the end of 2009 was $12.3 trillion. The interest paid on this debt was $383 billion. This interest figure is less than the $406 billion paid in interest in 2006 due to lower interest rates. Fast forward to today, and interest now wipes out nearly half of federal income tax revenue. Income tax revenue for 2010 is estimated at $899 billion, of which $414 billion will go towards paying the national debt. What concerns economists is that if interest rates were to rise even just a few percentage points – all of federal income tax revenue would go towards paying the national debt, perhaps leading to a severe increase in the federal income tax rate. A doubling of income tax would not be out of the question.
Yet too many Americans haven't the time or interest to be concerned with such matters, not when entertainments consume their every waking thought and deed. Yet while the U.S. national debt is seemingly an out of control freight train barreling down the tracks with no savior in sight, personal debt such as that from credit card debt can be addressed. Highly effective debt relief programs exist today which are now within reach of all Americans. To learn more about debt relief and how you can benefit from these programs, please fill out the contact form to the right to speak with a debt counselor today!