Tax Rebates Pushed U.S. Into More Debt

This year's tax rebate was good for the American consumer's pockets, but bad for Uncle Sam's. The federal government upheld one of the five spending habits that leads to debt by borrowing from next year's income taxes to send out more than $100 billion to consumers.

Economists speculate this year's economic stimulus rebate will push the U.S. into a record deficit. At $319.4 billion, the country's debt is currently more than double what it was this time last year, and only about 10% less than the record set in 2004.

If you want to remain debt free, don't follow the U.S. government's example of spending. Two things you can do to stay out of debt - don't spend money you don't have and avoid using credit when you have cash.

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