Too many of us are living paycheck to paycheck because of all the consumer credit card debt we have.
Now consumer credit card debt itself is not bad, it's how we use it is where the problem begins.
In order to be responsible with our consumer credit card debt, we have to be knowledgeably in four areas of money.
Income: As children we are told to get a good education so we can make more money as we get older.
What they did not tell us was that as we make more money, this does not mean we have to accumulate more debt.
You need to look at your income versus your debt.
If you don't make enough money to pay your debts and living expenses, then maybe you need to look at ways to make more money.
What they should have told us was that as we make more money, we should learn to live within our means.
Saving: The problem over the last 50 years has been the trend for people to save less money.
Since most of our grandparents lived through the "Great Depression" they understood the value of a dollar.
They would live without in order to save money for when they retired.
With the implementation of Social Security, and retirement plans, people are not inclined to save money, but rather spend it and accumulate debt.
As recently as 2007 the national savings rate for the United States was negative.
This means people were spending more money than they made.
With the recent economic struggles, that trend as changed, but for how long.
Investing: With the advent of IRA's and 401K's, there is not reason Americans will not be financially secure in their retirement.
The problem is that most people are living with so much bad debt, they are unable to invest in themselves.
If you expect other to take care of your financial needs when you older, than you are setting yourself up for disappointment.
If you are not preparing yourself for your "Golden Years" then I would suggest you start today.
With most employers matching 401k contributions, there is no reason you should not take advantage of this.
Debt: Yes there is good debt as well as bad debt.
Here is a simple explanation of both.
Good debt is debt that will provide a return.
A mortgage could be a good debt, as the home increases in value over time, you should see a return on you debt.
As such, a mortgage could be a bad debt.
If you over leverage your home to the point you have taken every dime out of it, and now find yourself unable to afford it, then what could have been good debt is now bad consumer credit card debt.
Conclusion: Take action to eliminate bad debt such as consumer credit card debt, learn to live within you income, increase you savings, and invest in your future.