Here’s the gist of it (well, a summary of a summary) – Ron Laszewski has created an economic model based on the Bureau of Economic Analysis’ definition of Peak Debt. When given data from 1925, when peak debt was last reached, Laszewski’s model correctly predicted the crash of 1929 and the subsequence decade long Great Depression. Bad news folks – we hit our peak debt in 2005. It seems to suggest that 2009 will be particularly rough, and the year following even worse.

Here’s my suggestion: don’t take on any more debt, pay off all the debt you can, and figure out how to cut your expenses to the bone. It’ll be much easier if you get to make those decisions under controlled circumstances than have them forced on you later.

Wise Bread is a great source to help get your finances under control.