Let's say someone is spending about 11 percent of his or her paycheck to cover interest on outstanding debt. Erica Sandberg, a spokeswoman for Consumer Credit Counseling Service of San Francisco, says she'd immediately advise that person to seek help.
"This is a huge amount of a person's paycheck just to make ends meet," Sandberg said. "That's never smart. If you're borrowing that much, you might feel good for the short term. But over the long haul, you're going to be in real trouble."
As the national debt approaches a staggering $9 trillion, roughly $240 billion will be spent this year paying interest on the half that's held by public creditors (of which Japan and China are the largest). That translates to about 11 percent of projected tax revenue.
In other words, we're spending more on interest for our national credit card bill than was spent last year in discretionary funds for the Education, Veterans Affairs and Justice departments combined.
And at the rate we're borrowing, experts say, the amount of annual interest payments could double within 10 years.
All thanks to the Bush Administration and Congress. The question we should be asking, "Is this a greater threat to America than al-Qaeda?"
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