3 Bailout Costs No One Is Talking About

The bailout of our banking system, considered a short-term solution by many experts, could end up costing you big in the long-term. Of course, there’s the $700 billion required to buy up bad mortgages, but there are also a host of potential costs that you may not be aware of.

First, you should probably expect some sort of increase on your income taxes. Adding $700 billion to our already bloated budget could potentially leave the government with a trillion dollar deficit. Reducing that without raising income taxes won’t be easy.

You may also incur higher banking charges, on everything from checking accounts to overdraft fees. Part of the reason is that banks want to recoup their losses.

And you’ll even find higher rates on loans for the same reason… banks trying to make up for money they’ve lost… and less competition amongst fewer banks will make it easier for them to do so.

None of these things have happened yet, and perhaps never will, but it’s unlikely that this big of a bailout, with this much reduction in competition, won’t have any effect.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's '205 Ways to Save Money' as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

In debt? Find the solution that's best for you.

DebtFlex is FREE and confidential.

Click here to find out more.

If you're in debt, you might need help. But it can be overwhelming trying to find someone reputable who wont take advantage of you.

We've found a site that weeds out the nasty from the nice, and will help you pick a qualified and trustworthy partner to guide you on a path out of debt.

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.