by Charles Roring
The current situation makes it difficult for everyone to buy a house or propose a home mortgage. More families are facing the danger losing their jobs and becoming homeless. Real estate is becoming unaffordable to hard working American families.
In my previous article, I said that buy American products is the real bail out for the current crisis. It really is. Ten years ago, American goods and services were worth 8 trillion US dollars. Most of them were made by small businesses that provided jobs to American families. American goods and services need market. It is clear that trade deficit between the US and foreign countries has occured for years. Domestic market must be strong enough to absorb them. If American families only buy imported goods and services that are cheaper, American companies will lose their market share domestically. As a result, more companies will be closed and the number of unemployment will be rising. Those who need jobs to pay their mortgage loan will be in trouble. In this situation, hard working American families need serious adjustments in their spending habit.
If last year you went to five star hotel restaurant to eat dinner,this year your budget will force you to go to McDonalds. Paying your mortgage instalment has to be your first priority if you don't want to be homeless. If you have an expensive car which you also still pay its instalment, sell it and ride bicycle or public transportation. The price of a car is much the same as the down payment of a house. But put the house before the car. Costly vises such as cigarettes, beer and eating out in expensive restaurants can drain out your pocket at least 4,000 US dollars a year. You need to stop them so that you can collect enough money to pay your mortgage instalment or the down payment of your first house.
Sometimes we feel that eating out in the restaurants or drinking beer with friends in bars is imporant for socializing with friends. If we keep on doing that while we are having trouble with paying the instalment of our home mortgage or home equity, sooner or later we will be trapped in a hole which we cannot come out with easily.
Sometimes we feel that eating out in the restaurants or drinking beer with friends in bars is imporant for socializing with friends. If we keep on doing that while we are having trouble with paying the instalment of our home mortgage or home equity, sooner or later we will be trapped in a hole which we cannot come out with easily.
You can still socialize with your friends by having a barbecue and drinking beer at your home backyard. It will not jeopardize your ability to pay back your mortgage as soon as possible.
