The Credit Challenge

I was thinking about all the news regarding the credit crunch.  Most news talks about the problems that we face because of this credit crunch, where banks are not giving out credit like they used to. 

Let me be the first to say “Thank You Credit Crunch.”  The problem isn’t that credit is bad.  The problem is that borrowers are bad!  It’s not the type of bad you think of though.

By borrowers are bad, what I really mean is that they’ve been badly uninformed and under taught.  Most people don’t have the slightest clue how to properly handle their credit as it relates to consumer debt and credit scores.

So, the simple idea of making less money available to less qualifies people is really a good thing, because its easy to let credit and debt consume them.  Its easy for debt to consume all of us, and the ones who lose most are our children, spouse, and communities. 

But rather than just penalizing people for not having good credit, there should be more proactive education on how to use credit.  That is a great way to turn this economy around.  Educate people more and they will make better decisions.

Ultimately, if it would help someone like me to regain some control over my finances, then please step in and help me.  Fortunately, education has made a drastic impact on my life and many others have benefited from it.

Let me know what your thoughts are.  I’d love to hear your opinion on the credit crunch and how effective more financial knowledge would be.