Playing The Blame Game

The financial problems that many of us face today, especially with the economy the way it is, is that we haven't been making good choices with our money. We have overspent on trivial things, items that we don't really need or things that we can do without right now, and many of us have spent ourselves into a hole, accumulating massive amounts of high interest credit card debt and we've borrowed excessive amounts of money on our homes to finance our lifestyles.

Over the past few years, we spent our money much too freely without regards to the end consequences. Instead of spending, we should have been saving. We forgot that credit cards should be used sparingly, or for emergency use only. We borrowed the equity from our homes and a lot of the money was spent on vacations, cars, designer clothes, and other things that we could have done without.

We didn't buy what we could afford but instead, bought expensive homes and cars and other other items that were well beyond our means to pay for. Banks and other lending institutions made it much to easy for us to borrow and get credit. We relied too heavily on the financial advice that we heard on television or read in the newspapers.

We were told how to spend our money and what to spend it on. Not only did we get caught up in the spend now and worry about paying it back later trend, we kept borrowing and spending even when the signs of a weakening economy became public knowledge.

Now, the blame for our financial problems is being passed around. Some say it's the governments fault, some say the blame falls on the banks, while others are blaming Wall Street executives and those who run big businesses. Truthfully, they are all a part of the financial mess that we find ourselves in but much of the blame should fall squarely on those of us who didn't police our own spending practices.

We allowed ourselves to take on more debt than we could afford to pay back. This was a widespread phenomenon starting from the highest levels of the federal government and on down to state and local governments. Borrowing and spending became the business of the day for corporate America and Wall Street executives.

This same destructive course of action and tactics then trickled down to Main Street America and it became the way of life for millions of Americans who thought that they were on the road to financial freedom and a great retirement. Instead of accumulating wealth, many people are left with enormous amounts of debt and credit woes that will take years to straighten out.

Many of us are looking to the government to bail us out but it is doubtful that it will happen any time soon. The government is trillions of dollars in debt itself and is currently fighting to keep the economy from total collapse. The stock market is hurting and many people are on the verge of losing their jobs, if they haven't been laid off already.

Blame is easy to cast, especially when it is being cast at some one else. We should all take a look at ourselves before we start blaming others for our own financial woes. True enough, there should have been some type of self regulation by corporate America and there should have been more oversight by the government.

It's going to take a massive effort to get the economy running in a positive direction again and it's going to take time, patience, and strong leadership from the top levels of government and the private sector. Everyone is going to have to take an active role in getting their own finances back on track and hold on the best they can until the economy starts to improve.

Finance Topic of the Month: Loan Modification