Have you ever been late on a house payment? Boy, I have and was so grateful for the mortgage company’s grace period. If I miss my payment on the first of the month, I have until the 15th to make my payment without paying a penalty.
I love the concept. Grace period. It’s that little bit of time past a deadline in which you aren’t punished for your forgetfulness, foolishness, or empty wallet. You have a little more time to make the payment, get the money together, or just gather your wits.
In a recent interview with the Outback Doc, he made a passing comment that we are living in a grace period. I couldn’t agree more. A Day of Reckoning is coming, but until then, we can prepare, prepare, prepare and do our best to mitigate the impact that Day will have on ourselves and our families. How do I know that day is coming? Consider these stats:
- During 2011, U.S. debt surpassed by 100% our GDP (Gross Domestic Product) for the first time ever in history.
- The unemployment rate for young people is downright depressing. Depending on where you live, it’s more than 20% and in some places as high as 33%.
- The poverty level in the suburbs has climbed:
In the wake of the Great Recession, poverty rolls are rising at a more rapid pace in the suburbs than in cities or rural communities. Between 2000 and 2010, the number of suburban households below the poverty line increased by 53 percent, compared to a 23 percent increase in poor households in urban areas, according to a Brookings Institution analysis of census data.
- The official unemployment number in the U.S. hasn’t been below 9% since 2009, and unofficial numbers say it is now well over 15% since the official number relies on how many people are receiving unemployment benefits. This article states that most of those who are unemployed are no longer eligible for benefits.