Debt costs break record in February

Solano Real Estate Scene: Jim Porter

Article By: Jim Porter – March 15, 2024

United States taxpayers paid a record $76 billion in debt-servicing costs last month, which is 67% more than we paid in February 2023.

The fiscal year-to-date interest cost on our debt from Oct. 1, 2023, through Feb. 29 was $433 billion, and puts us on pace to spend more on this debt than we spend on defense, which will be another very scary record. American consumer credit card debt is now a record-breaking $1.15 trillion and delinquency is rising, especially among younger consumers.

The government is setting a bad example. Financial technology companies and banks are almost making it look cool to take out personal loans online, using credit cards, and doing the buy-now pay-later BS.

I ran up my debt from 1985 to 1988 because my income increased by 500% from 1979 to 1985, and so buy-now pay-later worked fine for those six years until I had a zero increase in pay in 1986 and a decrease in 1987 with our fourth baby due in 1988.

We had to sell our home in Pacifica in 1989, which – Thank You God – had doubled in value from 1984, pay off all our debt, and start over from scratch, renting in Vacaville for a couple of years until we could qualify to buy the home that we lived in for 29 years.

It was a very stressful few years, until we learned our lesson and committed to never again buying now and paying later for clothes, food, vacations and stuff that goes down in value faster than the loan balance.

Do not spend more than you make because, unlike the government, you cannot print money.

Jim Porter, NMLS No. 276412, is the branch manager of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.

Contact Us to Schedule a Mortgage Consultation

We’ll contact you with an evaluation.

100% Customer Satisfaction

Our goal is to provide 100% customer satisfaction. We do what it takes to keep our customers happy, to the best of our ability.