GOLDEN VALLEY, Minn. - The Fiscal Cliff that brought big headlines and resulted in big changes for taxes at the start of 2013 was a first step to realigning the national debt issue.
However, some economists say it wasn't enough and the next big crisis will loom again on March 1. That's when the U.S. government will actually reach its debt limit and an agreement is needed between Republicans and Democrats for an increase to the debt ceiling.
Author of "Lipstick on the Piggy Bank," Nicole Middendorf, of Prosperwell Financial, joined KARE 11 News @4 to put the crisis into personal terms.
Here is a simple look-
U.S. Tax Revenue: $2,170,000,000,000
Federal Budget: $3,820,000,000,000
New Debt: $1,650,000,000,000
National Debt: $14,271,000,000,000
Recent Budget Cuts: $38,500,000,000
Now if you take off 8 zeros from those numbers, pretend it is a household budget-
Annual Income: $21,700
Money Spent by the Family: $38,200
New Debt on Credit Cards: $16,500
Outstanding Balance on Credit Cards: $142,710
Total budget cuts so far: $38.50
Nicole also described what you can do to reign in personal debt.
For more information, head to Nicole Middendorf's website.
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