Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management.
Welcome back, David.
David Nelson:
Thank you. I’m excited to be here. Thank you.
Brandy Auterson-Hurst:
So we’ve been hearing a lot about the national debt lately, and you have a chart here to help us show what’s going on, right?
David Nelson:
Yes. The national debt certainly gets a lot of headlines, but the chart that I did bring along today basically takes a little different angle and what it’s looking for and positioning as far as the government debt. And what it’s tracking is how much the U.S. is spending each year on interest payments for its debt. The number just hit a record, sadly enough, of 1.2 trillion over the past 12 months, and it also means that the government is now spending more as far as on interest that it does on the national defense. I think the bottom line of all of this, even without any new programs, the cost of servicing existing debt has taken up a bigger slice of the budget, leaving fewer resources for everything else.
Brandy Auterson-Hurst:
Okay, so what’s the takeaway for viewers?
David Nelson:
Well, the key point is that higher interest rates that are hitting households as far as on mortgage debt, on car loans, things of that nature, isn’t just something that applies as far as to the individuals, it also applies to the national debt. As the chart illustrated, it’s showing the line going up. Well, as the line’s going up and the debt is increasing, interest rates were also increasing at the same time, which is not good news. Certainly this is not what we want. So we’ve got to be adults, we’ve got to look at this debt, we’ve got to do something about it, and hopefully politicians will have the courage to do something about it.
Brandy Auterson-Hurst:
All right, David, thanks for taking the time to talk to us today.
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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This video includes a paid appearance.