The Washington Post is doing an excellent series of articles on the crisis gripping the American economic market. The series, The Credit Crunch, explains very well how the cycle started and how each step of the process made the situation worse for the average American. The subprime mortage lending fiasco is the central character of the drama and is the focal point for the unfolding of the credit market and other lending. Businesses are having difficulty getting banks to back investments and the government had to buy bad loans to guarantee banks and lending companies from going under. The national disaster is a lesson for everyone individually. People are taking on too much debt, saving too little and living on credit for day to day purchases. It is time to do the hard work of creating a budget, paying down debts and delaying gratification for the latest gadgets and toys. The hardest pattern for many of us to break is entertaining ourselves and our friends. Being young, we want to go out to the latest movies, eat at a nice restaurant and show our dates or friends a good time. A great solution to this conundrum would be to scour the home pages of the cities you live in. Often, cities promote free or low cost activities going on that you can take advantage of to save a few bucks. Many events are time specific and have the added bonus of getting you to discover what you have around you that no one in another place can take advantage of. The national economy is still in for a hurdle. The economic rebate checks sent out by the government are mostly being used to pay off debt or buy some small items. We cannot count on the goverment to bail us out and relieve us of our obligations. Set a plan and work to achieve it. This is the best advice for any financial problem and is a great way to get anything else you want in life too.