You’ve heard about the mortgage crisis, but what about the credit card crisis? That hasn’t happened on this side of the Atlantic…yet. In the United Kingdom the fear of one is increasing, because recent numbers show that banks have doubled the amount of card debt they’re writing off. Why should Americans care? It’s only a matter of time before the same thing gets repeated here.
The International Monetary Fund warned earlier this year of a potential credit card crisis in Europe. More and more families are defaulting on their debts, and banks continue to write-off those debts. With unemployment numbers as low as they are in the United States, the same trend is likely to repeat itself here.
What does a credit card crisis have to do with preparedness? The credit faucet will have to be shut off or at least slow down during such a credit crisis. Families won’t be able to put items on credit as easily as before. Therefore, part of your emergency preparedness plans should be to get out of debt, and live within your means.
As you’re climbing out of debt, you’ll need more than just life insurance. You need food and water insurance, such as a well stocked supply for at least a month. As you get your financial house in order, you can add to your supplies and stock away even more.
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