Thursday, December 11, 2008

I've Got Shrinkage!

CNN reports that US household debt fell for the first time ever since data has been recorded starting in 1951.

Now, we're only talking about a 0.8% drop, but that's about $30 billion in the last quarter. And the total amount is an unbelievably staggering $13.91 trillion.

Along with this is a steep decline in net worth of nearly 5% in the fourth quarter.

As for my family, we watch how we spend money very carefully, as well we should, since my commission-only job has hit the skids in the past year. Thankfully we saved pretty well and made some important choices on our debt, so we're still OK, but I can't say we put a major dent in our debt. We still have a car loan for another 2 1/2 years, a house we're still paying for, and credit cards we still pay off every month. We have cut back on non-essential items, and we go for even deeper savings on groceries by clipping coupons. We got our house re-assessed to cut down on property taxes, and we spend a lot more time at home just hanging out or going to places where we can entertain the kids for free, like the park. It honestly hasn't been too bad, now that gas prices are so much lower than they were over the summer.

Now, if only people decided it was time for them to buy or refinance their homes, I'd have way more business. So if any of you out there are reading this and wondering if now's the time, it is. Let your friends know. When Lisa and I bought our house in 2004, we got a 30 yr. fixed at 5.875%. Now, we could probably cut that 1%. So yes, now's the time.

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