The US Has A Borrowing Problem And Easy Money Is Making It Worse

What is it with all the borrowing these days – credit card debt, low down payment mortgages, car loans and leases, college tuition loans, and the revival of the $100,000 five-minute loan? It’s like the American Consumer is addicted to easy money. Now with interest rates at historic lows, and the FED considering negative interest rates like the EU and Japan there are investment groups taking advantage of those and then lending money here. It seems like every day I read about more offers for easy consumer credit, get some credit card offer in the mail, or am enticed by some marketing company or corporation to buy something on credit. Let’s talk.

You see, there were two troubling articles in the Wall Street Journal recently; “Subprime Auto Loans Flash Signs of Trouble,” by Serena Ng, published on March 14, 2016. Unfortunately that first article was buried in the paper, only one column and hardly noticed. The other article did make the front page of Section II, it was titled; “The Five-Minute, $100,000 Loan,” by Ruth Simon and this article discussed how shrinking application times is good for small business – but five-minutes? Hmm? How is that good for Small Companies?

We have well over a trillion dollars in student loans, much of which is in the rears over 90-days, and we have challenges with subprime auto-loans, and our real estate prices are rather toppy, and thank god we are in an election year, but what happens after that? When it comes to tuition loans 40% are in borderline default status, even if those loans are not easily discharged. On the Subprime Auto Loans, 12.5% are over 30-days in the rears.

Easy money and low interest rates seem to have consequences. We have businesses large and small borrowing, consumers borrowing, and our government borrowing – no one is saving, and to keep all this going what are most Central Banks doing?

More stimulus, ouch, and exactly how, here in the USA, are college students going to continue to borrow for tuition if those loans are continually in default, whose paying for that? If car loans collapse, auto makers cannot sell cars and that means layoffs, meaning more loans default. We seem to be running redline in debt, and I do not see a way out of this without growth, but if all the growth is fake, stimulated growth from easy money, then at some point the whole thing collapses, and it doesn’t take a rocket-scientist, or economist to see that.

Save Money With Do-It-Yourself Car Maintenance

Regardless of whether the left headlight blew, the tire has a slow leak, or the brakes uncontrollably squeal, there is nothing worse than feeling the vulnerability of turning to a mechanic or auto repair center to solve your problems. Many times, mechanics sense your desperation and wish to take advantage of it, charging higher prices for a simple job. Then, there are the individuals who believe taking their car to the dealership for repairs will save them money, but they, too, provide an inflated price list.

When car owners take car maintenance into their own hands, the savings are often extremely beneficial. For starters, do-it-yourself car repair allows individuals to compare prices on the tools and car parts needed to complete a job. Many times, auto shops use products that they have bought at wholesale prices, but then increase the cost to customers. When repairing your own car, you will probably be more willing to seek out the deals on spark plugs, lights, and fuses in order to do the job for the least amount of money possible. You may also choose whether or not you want to purchase new or used car parts, which often costs considerably less.

The Top Do-It-Yourself Car Maintenance Jobs

There are numerous car maintenance jobs that drivers often tackle. Demanding only a small amount of supplies. Changing your own oil is a common maintenance activity that is rather easy to get the hang of. To make sure your automobile has an effective fuel system, learning how to change an air filter is also a helpful skill to possess. Sometimes a fuel filter will need replacing and many car owners have learned to complete this job as well.

Spark plugs should be replaced every two years and car owners will save money learning how to do this task on their own. Batteries should also be changed every four to five years. You don’t need a mechanic to handle battery problems. This job is completely easy to master. Additional car maintenance duties to consider includes replacing the disc brake pads, replacing drum brakes, working on the ignition coils, jump-starting a car and change your electric fuel pump.

Finding Resources to Help With Car Maintenance

When it comes to finding assistance with your car maintenance goals, there are plenty of resources that make these sorts of jobs much easier. One of the best places to start with involves a thick booklet you probably stuffed in the glove compartment: the car owner manual that came with your automobile. Depending on how long you have owned your vehicle, you may or may not still possess this publication.

If you have misplaced this booklet or it doesn’t clearly address your problems, you should get hold of a car book that is specific to your vehicle make and model. There are numerous approaches to consider, starting with purchasing one from an auto supply store, such as AutoZone or Pep Boys. Surfing the Internet for car repair websites is also a nice way to get the important details needed to fix a car. Depending on what type of site you visit, you may have to pay a fee to access various information.

To save money, car repair manuals can be taken out with a library card or photocopied from the library. These books are usually thick and heavy, filled with every aspect of car maintenance and repair. One of the most well known of car repair publications is the Chilton series of auto maintenance, which offers do-it-yourself help for cars ranging from Toyota Camrys to Ford Escorts.

When Not to Explore Car Maintenance

Beginner do-it-yourselfers may save a lot of money by learning how to change their own oil and oil filter, fix windshield wipers, and check the fluids. Tire maintenance, spark plugs, installing a car audio system, or even fixing a broken muffler are all reasonable jobs a non-professional can learn how to do. But larger jobs, such as installing a new alternator, some radiator and carburetor work, as well as engine and transmission repair might fall best into the hands of professional car repairers.

Although self-car maintenance is a real money-saver, you don’t want to place yourself in danger when repairing your vehicle. Some jobs require the knowledge of a professional to truly complete, so if repair instructions seem too difficult to grasp, you might have to surrender and pay a visit to the local auto shop.