Saturday, September 1, 2007

Blog of the week: Zen Personal Finance

The article "Should we feel sorry for these people?" is a great post based on an article about one of those situations that some may be in; the old 'Robbing Peter to Pay Paul' conundrum.

The Moellerings are 39 & 40, make about $66,000 combined.

Together they have a total of:

$22,000 in Credit Card debt (-)

$93,000 in mortgage debt (-)

$68,000 in Home equity line debt (-)

$5,000 in savings (+) doesn't say what their homes current value is but assuming that it's at $100,000 (as they just got married a few years ago) they might have a Net worth around (-$78,000) ouch. The article also touches on the differences in American credit/financial health 20 years ago as opposed to today. It's not pretty.

1 comment:

Karen said...

The problem of many people is that before applying for a credit card they are attracted by rewards so much that they don't think about monthly payments. Consequently they find themselves in debt.