It’s conventional wisdom that the economic crisis began in September 2008 when the stock market plunged, the House of Representatives rejected the bailout package and panic hit the streets around the world.

But these are all big picture economic indicators. Seems as though trouble was brewing for average Americans for a long while before the economic crisis hit the markets and the papers.  A study released in late November from the Census Bureau and reported on by the New York Times showed that as early as 2005, one in five Americans was having trouble paying for basic needs without help. This is nearly three years before the official beginning of the economic crisis where we began to see widespread indications of economic problems.

Seems like there was an early warning of what was to come…. The survey doesn’t get too deep into details, but it also tracks an increase in the number of personal computers, cell phones and even dishwashers since the survey began in 1992. While all of these things may seem like needs, this increase is also a sign of more spending on more stuff. 

Of course there were all of those shady banking practices, bad loans and irresponsible lenders to blame for the economic crisis. But there was also our own spending, for which we can only blame one person.

Now, I’m not saying don’t buy the things you need or not to reward yourself with a little treat here and there – that’s what we all work for. If you cannot enjoy what you earn, what’s the point?

No matter what the economists say, bullish or bearish, your own situation is your own situation. If you are having trouble paying for the basics, it might be time to ask for some help.

Here are some links that may help out:

Expert Tip: Credit Counseling Caution

Q&A: Debt Relief Agencies

 This blog entry was featured in Rich Life Carnival #38.