Do the new mortgage rules help?

The new mortgage rules have been covered everywhere it seems in the last couple days; the need to change how we deal with debt in general has also made the media a lot in the recent months.  So the big question is do these ne mortgage  rules help?

Regrettably, I believe these rules restrict options to get money at a low payment, but do not stop anyone from taking on more debt.  So if someone was been hit by a life event or other financially tough time, these new rules could forcing them to sell or more likely look for the money on credit cards or other less desirable options and those who these rules are targeted at can still likely get a line of credit, car loan or credit card.  I believe the more options we leave open, the more those driven can accomplish and when life throws an unexpected curve, a layoff, injury, death or any random event, the more options we have to save the family home.

This in no way means we currently do not have an issue with debt in this country and I applaud the attention and attempt to change the dangerous borrowing trend of many.  I believe we should work to educate those who are borrowing, have best practices that ensure the borrower understands the impact and build a culture that works to rid themselves of debt.  We need to encourage engagement in debt management and cash flow planning as these are two of the biggest opportunities most have to create a solid financial life.

The real questions are;

Why are people spending on debt like never before?

What can we do to encourage everyone to reduce their debt?

One suggestion might be leading by example, what is the national debt at now???

Budgeting Is Broken Event

Cash Flow

Budgeting is Broken

Is There Too Much Month Left To the End of Your Money?

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