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Credit/Debt maxed out. What's important--cutting spending, bringing in more $$ (or maybe both)?

Update:

What if the interest rate doubles if you miss a payment?

7 Answers

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  • 1 decade ago
    Favorite Answer

    What's most important is limiting spending in proportion to GDP. The rest of us have to limit spending proportional to income, why shouldn't the government.

    If the U.S defaults on interest on the debt, Treasury Securities get dumped on the open market. Either the Fed buys them and triggers massive inflation, or the Dollar collapse and a new currency is issued.

  • ?
    Lv 7
    1 decade ago

    There is a very limited amount of more money that you can bring in, most individuals just cant up and get a better job.

    The federal government really cant get more tax revenue without destroying the economic recovery we are slowly experiencing

  • ?
    Lv 5
    1 decade ago

    With government you have to cut spending because whenever they bring in more money they just spend more.

  • ?
    Lv 7
    1 decade ago

    Would you hand an alcholic a bottle of booze? No.

    Would you hand over your hard earned money to a govt who is addicted to your money and can't stop spending? No.

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  • Anonymous
    1 decade ago

    Which can you for sure do right now without any help from anyone?

  • Anonymous
    1 decade ago

    1st you need to cut spending.

    bringing in more money is OK but if you have to steal that money its a bad idea.

    Source(s): im not retarded.
  • 1 decade ago

    Cut the fat from where the fat is.

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