But expenses aren't as linear as your income. Emergencies crop up, opportunities present themselves, and even planned costs will vary through the year like your heating bill or gasoline costs. You've managed well so you take out a credit card. Maybe you've got more than one.
Because you've reliably made your payments, your credit limit reflects your excellent record. You've got a high credit limit. It tempts you to overspend and you succumb to the temptations. Now you've got your credit limit maxed out and you are at the point where your income barely allows you to make the minimum monthly payments. You've got no flexibility left for emergencies.
You know what the options are, don't you? You can work harder or take a second job to increase your income. Or, you can examine your expenses and make some tough decisions. Maybe the bass boat will have to go. Maybe you won't go on the Bahamas cruise this year. The new car might have to wait. Home cooking might be more common than dining out. Possibly no more HBO and pay-per-view but limit to basic cable. Start drinking eight-year-old blended Scotch instead of single-malts.
There is the other option of asking the bank to increase your credit limit, isn't there? If you are spending like a drunken sailor on shore leave in Olangapo and all of your credit cards are maxed, you know that isn't going to work. But, then you aren't the US government. The bank sets your limit not you.
Debt Ceiling Reached Geithner Flustered
What a concept, they are going to borrow from the pension funds to keep the party going!
Here's the funniest line in the whole piece:
Geithner, who has already suspended a program that helps state and local government manage their finances, will begin to borrow from retirement funds for federal workers. The measure won’t have an impact on retirees because the Treasury is legally required to reimburse the program.
That's a prize winner! "A program that helps state and local government manage their finances..."!!! The pusher is running a rehab!
The paragraph even includes the runner up for Whip of the Week: "won't have an impact because the Treasury is legally required to reimburse the program." Where does the Treasury, which has reached the debt ceiling and is tapping the pensions get the money to reimburse the program?
They probably don't even see the contradictions in that.