Lets say there is a household (call it a family of 5) that has a good economy, by that I mean it doesn't have much debt, is bringing in good money (revenue)...all things are well. Lets then assume something bad happens. Maybe a costly medical procedure, or house hold accident. They then are forced to double their debt. On top of that they take a pay cut at work. Things are rough. Their "economy" isn't so good anymore. No more movies or road trips just for the fun of it. How does he family get out of this situation? They could keep going as normal, and hope that they get a promotion and work and their economy improves, and use that money to pay down the debt, which will of course be much more by then. Or they could suck it up and start paying down the debt right away. Things will still be rough. their "economy" won't be great for a long time, but they would recognize that this debt will only continue to grow and that they will never prosper until it (and other liabilities) is paid down.
You guys are smart I hope you can connect the allegorical dots!
You guys are smart I hope you can connect the allegorical dots!