As the new year begins many consumers and homeowners are wondering what 2010 is going to look like. First let me begin by stating that I am an optimist at heart. I believe that there is no better time to be alive then now. I also believe that if we as a nation are to emerge from the mistakes of the past and build a healthier and stronger economy, we have to accomplish a few things….together.
Number 1. We all must begin to rid ourselves of debt. We must stop spending more than we earn. The media is a powerful force that conditions us to spend. Turn off your TV. I’m also guilty of this during the boom time, but have been working systematically to rid myself of debt since June 2009.
Number 2. We must understand what we’re dealing with. Like the general on the battlefield, he must be aware of the enemy. As consumers, it’s vital for us all to know whats happening behind the scenes with the financial institutions “we used to trust”. Yes, “used to” because they have all proven to us that they cannot be trusted. See the previous blog about what banks are doing.
For this EC360 Empowered Consumer Blog Post, the graph below should have everyone’s attention. The graph shows the coming storm in the financial sector. The reason I suspect the next storm will be worse is simple. The next wave of mortgages that re-set will come “on top of” the commercial meltdown that is just around the corner. The graph clearly indicates that we have not hit the peak yet, and this trend will continue through 2011.
The book I wrote Empowering Consumers with HowToTorials in 2006 predicted a crisis. I was wrong about one thing…how big it was going to be. I hope I’m wrong about what’s still to come. Feel free to contact me if you have any questions about your financial future, your mortgage, credit card debt or any other issues relating to your fiscal well-being.