Trillions of reasons to fret

Boot up your computer or smartphone, take a very deep breath and type in the following: usdebtclock.org

The first thing you’re likely to notice is how quickly the U.S. national debt is rising toward $20 trillion. Watch that for even a few seconds and see if you aren’t pushing down a surge of panic.

As if that isn’t fiscally horrific by itself, think about a couple other terrifying trends.

The average 2016 college graduate owes $37,172. Student loan debt is now estimated at $1.3 trillion. That comes from 43 million borrowers — 7 million of whom are in default. In a recent meeting with editors at The Press, new North Idaho College President Rick MacLennan said dealing with that massive student debt represents a potential catastrophe comparable to the subprime mortgage crisis that triggered the Great Recession.

Unfortunately, there’s more.

According to a new WalletHub.com study, American consumers racked up $34.4 billion in credit card debt in the second quarter of this year. That’s the largest second-quarter amount going back at least 30 years and adds credence to WalletHub’s suggestion that the nation is “flirting with financial disaster.” As troubling as the second-quarter report is by itself, two other factors heighten the alarm significantly. First, last year showed a record increase in credit card debt, to $71 billion. And how did borrowers immediately respond? In the last quarter, paydown of first quarter credit card debt was a record low. By the time 2016 comes to an end, our nation is almost certain to exceed $1 trillion in outstanding credit card balances, a record amount.

National debt, $20 trillion. Student loan debt, $1.3 trillion. Credit card debt, $1 trillion.

Debt will be the death of us if we don’t change. And with credit card debt, at least, reversal of fortunes can be much faster than the other two.

Government didn’t get us into credit card debt and it won’t get us out. Personal discipline will. With the possible exception of medical needs, credit cards — and what they purchase — tend to be optional. Saving for purchases does take longer in this gotta-have-it-now society, but it’s by far the wisest route to healthy finances. For the trillionth time, if you must use credit cards, do so only when you can pay them off every month.

Meantime, take a look at Sasha Fisher’s letter to the editor today. There’s a lot of financial wisdom in a 21-year-old’s suggestions.