The 'Fiscal Cliff' & overspending during the holidays
Many Michiganders may face a double dose of economic reality come January 1st, as credit card bills start arriving and their federal taxes may increase.
Dorothy Barrick is a group manager with Greenpath, a not-for- profit credit counseling agency.
She says Michiganders have been spending more and saving less during 2012.
Barrick says if congress and the president fail to avoid the fiscal cliff, many Michiganders may be surprised at the size of increased federal taxes beginning next month.
“That being compounded with going into the new year with credit card debt is just disastrous," says Barrick.
Barrick says putting money into savings accounts and spending less with credit cards are ways to avoid financial problems. It’s a lesson many Michiganders may wish they had learned come next year.