Responsibility: Solving the Foreclosure Crisis

1067 Words5 Pages
Unfortunately solving the foreclosure crisis is not as easy as 1-2-3: individuals with home loans have gotten their families into misfortune by putting their shelter in jeopardy through spending above and beyond their needs and limits. America is facing an economic predicament forcing wages to decrease and many who were living a happy and fruitful life at one point, now struggles to make the payments for these luxuries. Sure…one can get by without cars and vacations, but the housing market has been impacted— no one can afford to upgrade and some cannot pay for what they already have. Being an education major, I believe that the first step is educating Americans—young and old—the value of money and how to be financially responsible. Children watch how their guardians spend and save, so we need to focus on teaching everyone. Today in a world of plastic credit cards, it is easy to forget the value of money. No real exchange of cash is taken place in more than half of American transactions: consumers hand over their debit or credit card and magically the purchase has been satisfied. Purchasing an item with a credit card can cost more than double its original price if only the minimum payment is made. Credit cards do not come with instructions, but they do come by the dozens: we need to educate individuals to know the true impacts of the purchasing power of credit. Growing up, I earned an allowance for completing tasks around the house—I used the allowance to purchase candy and toys. When the money was gone, I no longer had the power to purchase. As I got older, I took on more jobs like mowing my grandma’s lawn and working for the family business, so I could afford the name brand clothing that my classmates wore. Up until my senio... ... middle of paper ... ...overspending money they don’t have. A responsible approach will result in responsible outcomes. The banks need to take responsibility, as well, for granting maximized loans—the banks look to reap the benefits just like the borrower so both must be held accountable for the reckless decisions. Overall, I believe that we as Americans can solve the foreclosure crisis by taking a few responsible steps—instill proper financial education to all ages, implement the right to rent program for mortgage assistance, grant property tax relief to first-rate borrowers, and executing harsher loaning guidelines. A theme of “Change” connected with Obama’s campaign inspired Americans to vote for the first African-American president: to promote change we need to focus on responsibility. Everyone needs to take responsibility before change can take place—responsibility of one’s self.
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