A Few More Thoughts about my Stupid Pilot Trick

A response to some of the comments I’ve been getting, along with an update.

First of all, I want to thank the over 70 (so far) people who have taken the time to comment on my “Another Stupid Pilot Trick” post. It took me about a week to write it, mostly because I was embarrassed about what I’d allowed to happen to me, and I was feeling more than a little sensitive about that. I almost didn’t leave comments open on the post. But I’m so very glad I did. The outpouring of understanding and good wishes has been amazing. I didn’t get a single nasty or hurtful comment — which is pretty amazing given the percentage of low-life scum we all see bottom feeding on the Internet. You folks rock.

What’s really weird to me is how many people came to read the post. Apparently, it was picked up on Facebook or somewhere else and went a little viral. For two days in a row, it got more than 10,000 hits. So a lot of the comments I got were from complete strangers, including a lot of pilots.

The blog isn’t the only place I got feedback. I also got some on Twitter and a little on Facebook. I got a few email messages and even one phone call. Everyone was amazingly kind and made me feel good about my friends, acquaintances, and the pilot community.

Thank you.

Why “Stupid Pilot Trick”?

First, an explanation.

A friend of mine took some offense at the title of the blog post. She said:

I have to say I don’t like the title of your blog. It made me feel like you were hot dogging or pushing the helicopter to it’s limits.

Understandable. A lot of pilots use the phrase “stupid pilot tricks” to refer to that kind of behavior.

But as I explained:

“Stupid pilot trick” is the phrase I’ve always used to refer to accidents caused by pilot error. I’ve used it in discussing other accidents so I thought it appropriate to use it when discussing mine.

She seemed satisfied with that. I hope other readers are, too.

My Recovery

I’ve had some more time to recover both physically and mentally.

Windsock
One of my home projects was to replace my old, faded windsock with a bigger, brighter one. I even installed solar spotlights to illuminate it at night.

The bruises are almost gone — the one on my right leg, which my doctor says might take several months to disappear, is pretty much the only one left. (I’d include a photo of the way blood under my skin is now pooling on the right side of my right foot, but do we really need to see that? I don’t think so.) I had low-grade, nagging headaches for a while but they’re all gone now. I’d say I’m pretty much back to 100%, and that’s good. It’s springtime and I’ve got a ton of work to do in my garden and a long list of projects around the house to tackle.

Mentally, things are a bit weird. I think I’m suffering a bit from survivor guilt. You see, about three weeks before my mishap, a friend of mine was in a helicopter crash in eastern Washington state. He’d been doing some animal capture work with two biologists on board his Hughes 369 helicopter. One passenger died and my friend and the other passenger were seriously injured. No one knows what happened because no one can remember. My friend was in a coma for two weeks with a 10% chance of survival. He’s a young guy, though, and he came out of it. They did reconstructive surgery on his arms and legs. His wife recently sent me a photo of him in physical therapy. He’s got a long road ahead of him.

I didn’t want them to know about my crash mostly because I felt bad that I’d survived with very little injury and he’d very nearly died and will be working on his recovery for months (or more?) to come. But his wife found out — probably through the hoopla over the blog post. They’re okay with it — I mean, why wouldn’t they be? — and I know now that my survivor guilt is idiotic. I’m coming to terms with that slowly.

The gaps in my memory of the event are also bothersome. I still don’t remember anything from the time the helicopter went through the trees — which was very loud and seemed to take forever — to the time I was on the ground and realized I could get out. Somewhere in there, the helicopter hit the ground at least twice and turned 180 degrees but I don’t remember it at all. And no, I didn’t pass out; I had no head injury other than getting my brain rattled around a bit. I also don’t remember using the fire extinguisher, although I apparently did. And what did I do during the 30 minutes between when I texted another pilot right after getting out of the helicopter and finally calling 911? I remember parts of two telephone conversations I had during that time, but not 30 minutes worth of anything. I’ve never experienced memory gaps like that before and it continues to bug me that that time is missing.

I should stress that my memory beyond that is fine. My brain is back to functioning at 100% of whatever it was functioning at before the crash.

Counseling? No Thanks.

About two weeks after the crash, I got a letter in the mail from an organization that offers support to pilots after crashes. My response was to get angry. Very angry. So angry that I wrote an email to the guy who sent it, berating him for assuming that I needed help.

Fortunately, I didn’t send it. I grew to realize, with the help of some of my Twitter friends, that some pilots do need help getting past a crash and that the organization would probably be very helpful to them.

A lot of the comments I got from people about the crash assumed that I was seriously traumatized by it. But am I?

I don’t feel that I am and I think I know why.

You see, if you were to make a list of the traumatic things in my life and rank them by how traumatizing they were, this crash would actually appear pretty far down the list. I don’t want to share the list — jeez, why would I want to revisit all the things that have traumatized me throughout my life? — but I will offer one example: the man I lived with for 29 years, who I loved and trusted with my life, cheated on me (with a woman old enough to be my mother!), lied to me (and a judge, under oath), and then tried (and failed) to ruin me financially through a long, drawn-out divorce battle. You don’t think that’s pretty traumatizing? A helicopter crash I walked away from with just scrapes and bruises is nothing compared to that.

(So yes, my crazy divorce prepared me for a helicopter crash. Thanks, honey!)

It’s all relative.

If you remember nothing else from this post, remember this: When you live life, shit happens. The more you live, the more shit happens. I’d rather deal with the shit that’s a byproduct of life than to have no life at all.

‘Nuff said.

Getting Back in the Saddle

I don’t need counseling. What I need is to fulfill my desire to get back into the cockpit and go flying.

No, I’m not afraid to fly now — although I admit I have no interest at all in flying at night. (Other than the “Moonlight Dinner Tours” I did in Phoenix between 2005 and 2011, I never really enjoyed flying at night.) Knowing what caused the crash — distracted flying at night — and what I can do to prevent it from happening again — pay attention, idiot! — takes away any fear I might have of flying again. After all, I really am a decent pilot — a “good stick,” I’ve been told. I flew my R44 like most people drive their car — or maybe even better. (Actually, probably better considering the way some people drive.) I’ve learned my lesson and am eager to get back in the cockpit.

Of course, that means getting another helicopter. I’m working on it. The week after the crash, I put in an offer on a helicopter in Canada, but the guy’s price, which I thought was high, was firm and he wasn’t interested in helping me get it into the U.S. And then there’s all kinds of paperwork to deal with when bringing an aircraft down and I’m simply not interested in dealing with any of that. So I’ve scratched all Canadian helicopters off my list.

I’ve also rethought my strategy on buying a new helicopter. Rather than getting one in the same condition as the one I lost — jeez, it was just a year out of overhaul! — I figured I’d buy one that needs an overhaul in two to five years and get the overhaul done when the time came. That meant I could buy a helicopter for cash using the insurance proceeds and save up for the overhaul. Without a helicopter loan, saving up would be possible. After all, I did it in 2013-16 after paying for a divorce, buying land, and building a home. (I do make a decent living as a pilot and still earn royalties on some of my writing work.) Then, in overhaul, I could get it fixed up to be more like the one I lost.

With that in mind, there are three candidates I’m considering. The closest is in Phoenix and I’ll likely check it out within the next week or so. I’m hoping we can go for a test flight.

I will admit one thing here: not long after the accident, when I first started thinking about buying another helicopter, there was a fleeting moment when I considered taking the insurance money, putting it in the bank, and not buying a helicopter at all. I’m a little young for retirement — although I consider myself semi-retired since I only work half the year — but financially, I’m secure enough to call it quits now if I want to. And I could still manage my cherry drying contracts every summer for a little side income. It would be an easy way out of the inconvenient mess I put myself into. But there’s no challenge in easy and I’ve come to believe that I live for challenges.

And I’m not ready to give up yet.

On Bravery

A lot of the people who commented about my blog post or contacted me other ways told me I was brave to tell my story. I’m having a little trouble wrapping my head around that.

You see, I don’t consider telling my story about what happened “brave.” It happened because I was dumb and let it happen. It’s embarrassing, but not something I could (or should) hide.

Last Photo of N630ML
This is the last photo of N630ML in one piece. I was one of a team of three frost control pilots. This was shot in the hangar we were based in at Yolo County Airport.

Like it or not, I have a bit of a public persona. Part of it dates back to my writing days when I did a lot of public appearances. Part of it is because of this blog and my general outspokenness. There was no way in hell that I could crash a helicopter and prevent people from finding out. After all, one day, I’m flying a beautiful red helicopter with my initials in the N-number and a few months later I’m flying something completely different. And it isn’t as if pilots don’t read the NTSB reports. I do.

And why should I hide it? I did something dumb. If I could admit it and other people hear about it and that prevents them from doing the same dumb thing, I might save lives. Why wouldn’t I do that?

It’s not bravery that has me writing about this. It’s common sense. It’s caring about the pilot community and the passengers that pilots carry. It’s wanting to use my experience as a teaching moment for others.

And let’s face it: I’m in my mid 50s, approaching the end of my flying career. I’m self-employed and am not going to lose my job by admitting I did a dumbass thing that could have killed me and totaled my helicopter. I’m not worried about future employment because I’ve already come to terms with this fact: very few employers would consider hiring a middle aged, outspoken and set-in-her-ways woman with only 3700 hours of helicopter flight time for any flying job that would really interest me.

So what’s so brave? I’ve got nothing to lose by speaking out.

Dealing with the FAA and NTSB

Some pilots reading this might want to know what it’s like to deal with the FAA and NTSB after an accident. Let me fill you in.

First, I have to stress how lucky we all are. First, I survived with very little injury and a decent memory of what happened. I’m not in denial about what happened and why it happened. I’m not interested in hiding the facts. No one other than me was involved in the crash. There was no property damage — other than the trees I “trimmed” on my way to the “landing zone.” (Humor does help.) The crash was never even reported in the local news. The only photos that exist are the ones taken by police — I assume; I haven’t seen any — me, and my friend Sean who was there for the recovery. All this makes it a lot easier for everyone concerned.

The NTSB was the first to get in touch. Their local guy called while I was still in the hospital. (I was in the hospital for less than 3 hours.) I think he got my number from the police. I gave him a verbal account of what I remembered over the phone. He was very kind and polite. And relieved, it seemed. By simply surviving and telling him exactly what happened I was making his job very easy. In fact, the NTSB didn’t even come out to the accident site. They got a lot of information from the police, I guess. They released the helicopter for recovery within 3 hours of the crash. It was removed by noon the same day.

The FAA’s Sacramento office got in touch three days later. I was at Heli Expo in Las Vegas by then. I spoke for about 15 minutes on the phone with an inspector, telling him pretty much the same thing I’d told the NTSB. He asked if I’d be interested in doing a presentation at a WINGS safety seminar in my area. Sure, I told him. I want other people to know how easy it is to let complacency kill you. He recommended that I get back in the cockpit and start flying as soon as possible, perhaps with a CFI. (Another one worried about my state of mind.) He asked me to send him a summary of the crash in writing via email and I took down his email address. The next day, I sent him the same stuff I’d sent my insurance company.

About a week after the crash, an NTSB investigator from Washington called. I gave him the same information. He said he’d send a report I needed to fill out and warned me that I’d have 10 days to complete it and send it back. It got lost in email and was resent and the 10-day clock started when I confirmed receipt. Then I forgot about it. I remembered it six days later and spent about an hour filling it out. It was pretty straightforward, asking for basic information about the aircraft and my logged flight time, as well as a narrative about the crash. There were full pages I was able to skip because there were no other aircraft involved and no other crew members or passengers.

Along the way I had to tell my Part 135 POI that the helicopter no longer existed. He asked me to write an email officially asking to remove it from my Part 135 certificate. That was a 10-minute job.

And that’s it, so far. Although the FAA might ask me to do a special check ride with them, no one has asked yet. I don’t think there’s any doubt that I know how to fly safely. I was very forthcoming with the dumb thing I’d done that caused the accident. I do my Part 135 check flight in June anyway and I bet it would take them that long to schedule a special flight.

So my dealings with the FAA and NTSB have been pretty worry-free and very professional. I’m happy with the way they all actually seemed to care about me and my wellbeing. There were no accusations or unfair finger-pointing. After all, how could there be? I blamed myself because it’s my fault.

Why Deny the Truth?

And that’s another weird thing that I’ve realized: too many pilots won’t take blame for accidents that are their fault.

I know a good example. A few years back a pilot was flying a Schweizer 300 on a cherry contract. He had full fuel and another pilot on board so they were pretty close to max gross weight. He came in over a cherry orchard at high speed and made an aggressive turn that involved coming to a stop and descending. The helicopter went right into the trees. He claimed that the engine lost power but the NTSB, which took the wreckage in for investigation, could find nothing wrong with the engine. Instead, they reported that the accident had been caused by the maneuver he’d used to come in over the orchard: descending at a near stop had likely caused him to settle into his own downwash. Settling with power.

While it’s true that the pilot may really believe that the engine lost power, it’s more likely that he’s in denial of what really happened and his part in the cause of the accident. After all, when you get into settling with power, pulling pitch just makes it worse. It might seem as if there’s an engine problem. But we’re trained to avoid, recognize, and recover from settling with power and he was a flight instructor so he should understand what happened.

I’ve met this pilot and years after the accident he was still defiant, claiming the NTSB had gotten it wrong. As if the NTSB, which exists to investigate transportation related crashes, doesn’t know what it’s doing.

Now suppose I was in denial about my part in this accident. Suppose I claimed that the helicopter had lost power in flight and I’d found myself flying into trees. All of a sudden, the case isn’t cut-and-dry. The NTSB would have to take possession of the wreckage and perform all kinds of tests on the engine to see if it had lost power and why that might have happened — all on the taxpayer’s dime. (And yes, I’m a taxpayer and I care about how the government spends our money. Don’t get me started on $30K dining room sets, please.) Robinson would get involved. Reports would be delayed, I’d be questioned over and over. All this would still be going on now — and likely for months.

At what benefit?

Isn’t it better when a pilot honestly reports what happened and takes blame when he/she is to blame?

As far as I’m concerned, this chapter in my life is nearly closed; I’m already moving forward with the things I need to do to replace the helicopter and continue my work. That wouldn’t be possible if I didn’t recognize and admit what really happened and work with the authorities to help them quickly get the facts they need to complete their investigation.

On my Well-written Account

A few folks have commented about how “well-written” my blog post about the accident was. I appreciate the praise but, in all honesty, this one makes me giggle.

While lots of people know me as a helicopter pilot, what they may not know is that I became a helicopter pilot and bought a helicopter by building up a 20+ year career as a writer. Yeah — I wrote for a living. A good living. I think that says something about my writing skills. Somebody who can’t write can’t earn enough money as a writer to pay for helicopter flight training and buy a helicopter.

I wrote boring stuff. Books about how to use computers. Step-by-step instructions with lots of screenshots and captions and sometimes even callouts. I wrote it all and I often even did the layout. I wrote for numerous publishers, some of which you may have heard of: Peachpit Press, McGraw-Hill, Macmillan, Brady, Sybex, Microsoft Press, etc, etc. Some of the later books, which I’ve self-published, are about more interesting topics. If you’re interested in numbers, the count so far is 86 books.

I also write for magazines, both print and online. I wrote for computer magazines in the old days (pre 2012) and now write for aviation magazines. The most recent issue of Vertical included an essay I wrote, right near the beginning.

I started this blog in 2003 as an outlet to write stuff I found interesting — mostly stuff from my life, including my flying life. I use it to record and save information I want to share or consult later, like recipes. I use it to vent when something pisses me off or heap praise when something makes me happy.

I’ve also been working on a book about my first ten years as a helicopter pilot. It’s about halfway done. If I get a little more motivated to work on it, I hope to have it finished by this summer. (And yes, I know I’ve been promising that for a while now.) Will it include this accident? No. I’ll save that for Book II, which will cover the next 10 years.

So to those of you who think my accident account was well written, thanks. It better be.

That’s All for Now

And that’s pretty much everything on my mind in response to the comments I’ve gotten on my accident blog post, in email, and by phone. Once again, I want to thank all of the folks who took the time to reach out. You really made me feel good.

It also brings the situation up to date as far as my plans for a new helicopter and dealing with the authorities. I’m sure some of you were curious. This should satisfy that curiosity.

Any new comments or questions? Use the comments link for this post and I’ll try my best to address them — hopefully individually this time.

A Marketing Moral Dilemma

Any advice?

K2 Wrapped in Sterling Silver
A K2 cabochon wrapped as a pendant in sterling silver.

Labradorite
A labradorite cabochon wrapped as a pendant in sterling silver.

Yellow Feather Jasper
A yellow feather jasper cabochon wrapped as a pendant in antiqued copper.

I’m in a bit of a moral dilemma.

To increase the marketability of the semiprecious gemstones I’ve been turning into jewelry, I need to include details about the stone in each piece.

I have no problem writing up the geophysical aspects of the stone, but I’ve been advised by other jewelry makers to include metaphysical aspects, too. And that’s the problem: I don’t believe in any of the purported metaphysical benefits of rocks.

The trouble is, although the stones I’ve been wrapping are attractive pieces of jewelry in their own right (if I do say so myself), many of the people who would consider wearing stones as jewelry do so because they believe in the metaphysical properties of the stones they wear.

Although true believers know what stones they want, borderline believers might not. If I include the “fact” that moss agate, for example, aids in childbirth, I could help convince a pregnant woman to buy a piece of jewelry that includes a piece of moss agate. It certainly wouldn’t hurt her in any way, but I don’t believe it would help her, either.

The moral dilemma is that I believe that including such information is misleading a potential buyer. But what if the buyer expects such information? And if the information is widely available and easily confirmed, why shouldn’t I include it if it could help sales?

Any advice?

How Debt Service Prevents Financial Prosperity

Understanding what debt costs.

Last night, in the middle of the night, U.S. Senate Republicans voted in a tax bill that would add an estimated $1.4 trillion to the deficit over the next 10 years (per the Congressional Budget Office (CBO) report). The bill was long with many handwritten amendments and no one was given enough time to read and comprehend the entire thing. There was no debate in the Senate; Democrats were not even allowed to ask for enough time to read it all. Despite all this, almost every single Republican voted in favor of the bill.

Democrats did not. I like to think it’s because they want to fully understand something they vote in favor of, which I double many Republicans did. Or perhaps they actually believed the data in the CBO and Joint Tax Commission reports, which both indicated that the middle class would be harmed by the bill for the benefit of the wealthiest of Americans — many of whom just happen to be the biggest donors to Republican candidate campaigns.

All politics aside, however. This blog post isn’t about politics. It’s about the financial impact of living in debt.

My Qualifications

Before I dive into the numbers, let me take a moment to explain what makes me qualified to write about this.

First, my education and early work experience. I graduated from Hofstra University with a BBA with Highest Honors in Accounting. From school, I went right to work with the New York City Comptroller’s Office — and no, that’s not a spelling error — Bureau of Financial Audit. My job was to audit various organizations that had contractual agreements with the City of New York. I started as a Field Auditor and, within two years, became a Field Audit Supervisor responsible for overseeing up to 13 auditors. When it became apparent that the only way to move up in the Bureau was for someone to retire or die, I moved into private industry. I wound up in the corporate headquarters of Automatic Data Processing (ADP) where I was a Senior Auditor and then a Senior Financial Analyst. I audited various divisions of the company all over the country and later crunched numbers for executives who needed numbers to say certain things.

Second, my own experience with debt. It happened right out of college when I got my first credit cards. It was easy to buy things so I did. Trouble is, I had a lot of credit cards and I carried a balance on all of them. After a while, I could only afford the minimum payment on most of those cards. And if there’s one thing you must know about credit card debt is that it will take years to pay off a credit card if you only send in the minimum payment every month. I learned this lesson the hard way. I was able to avoid bankruptcy by simply cutting up the cards, reducing my spending, and putting more money toward my balances until they were all paid off. These days, I only have two credit cards — one for personal use and one for business use — and I pay the entire balance in full every single month before the due date. (More on the amount of money this saves in a moment.)

Third, my second career as a freelance technical writer. Writing 80+ books gave me plenty of experience explaining somewhat complex topics to readers. Among my books are about 10 editions of Quicken: The Official Guide for Osborne/McGraw-Hill. We wanted a book that went beyond simple software how-to and actually provided good financial advice for readers. I wrote sidebars and created downloadable worksheets for readers to use to help them improve their financial situation. A lot of them dealt with debt. (More on this in a moment.)

So yes, I know a little about finance and debt and I have the skills to write about them. If you need to learn, read on and be educated. If you think you already know what I have to say, read on and let’s compare notes in the comments section that follows. Fair enough?

Debt Service

The online Financial Dictionary, has several definitions for debt service. I like the second one because it applied to both businesses and individuals:

The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be “unable to service one’s debt.” An example of debt service is a monthly student loan payment.

So let’s take that student loan payment as an example — especially since student loans are in the news so much these days.

I was fortunate; I only had to borrow $5,000 and I had 10 years to pay it off. My payments were about $60 per month. (And no, I won’t tell you how long ago this was.)

Let’s do the math on a more realistic modern example. Suppose you graduated from college with $50,000 in student debt. While there are many types of repayment plans, let’s go with a simple one: 12 years at 5% interest. This spiffy loan calculator template in Excel does all the math for you on monthly payments, and interest paid:

Loan Example
Not only does this Excel template calculate the amounts for a loan, but it charts the percentage of interest in your debt service.

In this example, your debt service for this loan would be $462.45 per month for 144 months. Over that time, you’d pay off not only the $50,000 you borrowed, but an additional $16,592.11 in interest.

Now imagine you have a Visa card that you just used to pay for a much needed — in your opinion, anyway — vacation to the Caribbean. You’ve got decent credit and the issuing bank gave you a $10,000 line of credit. But when you called to ask if you could raise that limit, they graciously popped it up to $14,000 — which is a great thing because you managed to charge up $8,459 on top of the balance you were already carrying for that big screen television you bought for the Super Bowl and last year’s trip to Hawaii. Now you’re looking at a balance of about $12,500. But when the bill comes, you’re relieved to see that the monthly minimum payment is only $273.33 per month.

But let’s take a moment to take a closer look at the numbers. As this extremely helpful Minimum Payment Calculator explains, credit card companies calculate your minimum payment based on either a percentage of the balance or your interest plus 1%. (You can get the details for your credit card in the fine print in your bill or credit card agreement. You did read that, didn’t you?) For this example, I used the details for my Chase Amazon Visa card: currently 14.24% interest (tied to prime so it could change at any time) plus 1% of the balance plus any interest, late fees, or unpaid amounts due. If all that adds up to less than $25, then my minimum payment is $25.

Minimum Payment
The minimum payment calculator explains just why it’s so dumb to send in just the minimum payment on your credit cards every month.

Going a step farther with the math on this, you’ll learn that it will take 305 months to pay off the debt if you only pay the minimum payment. Why is that? Simple: each payment you make goes mostly to pay off interest so the debt is reduced at a very slow rate. If you stopped using that credit card and paid just the minimum payment every month for 305 months, you’d pay nearly $14,000 in interest on the original $12,500 debt.

Minimum Payment
The CFPB — yeah, that’s the government agency that Trump says is hurting banks — added what’s in the red box to every credit card bill in an effort to educate consumers about credit card debt.

A side note here. Because so many people don’t understand this, the Consumer Financial Protection Bureau, which was created during the Obama administration in part to help protect consumers from deceptive lending practices, began requiring credit card companies to make it clear how long it will take to pay off your credit card with just the minimum payment each month. Here’s an actual image from one of my Amazon Visa statements.

If you put all this together, you can see why it’s easy to get bogged down in debt when you have a bunch of credit cards and only send in the minimum payment. The debt never goes away unless you pay more than the minimum and stop using the credit cards.

Remember this: The money you spend on debt service is money you can’t spend on anything else. It should be considered mandatory spending, not discretionary. This is an important concept to keep in mind, not only for this discussion but for the way you manage your personal or business finances. The more debt you have, the less choices you have on how to spend your money. And the less money you’ll be able to save to get ahead.

Paying Down Debt

One of the things I recommended in my Quicken books was to pay more than what’s due on a debt — especially a large debt like a mortgage or a high interest debt like a credit card or consumer loan. That spiffy Excel template I showed earlier makes it easy to do the math. Suppose you pay an additional $100 per month toward that loan. Here are the results:

Loan Example 2
By sending in an additional $100 per month in this example loan, you can knock nearly 3 years off the term and save about $4,000.

Of course, it isn’t always easy to send more to pay down a loan. Maybe you can’t do it every month. But sometimes you can. Maybe you’ve sold a motorcycle you never ride for $1000 or got a $1500 holiday bonus. Or maybe this month’s commissions were better than expected. Send the extra money to a debt you want to pay down. It will make a big difference.

True story: When I was married, I was in charge of household finances. Whenever there was extra money in our joint checking account, I put that cash towards our mortgage. The result? We paid off our 15 year mortgage in 11 years, savings thousands of dollars in interest. (Yes, at the age of 50, I actually owned my home. And here’s a secret: I own the home I’m in now, too. Life is very good without a mortgage payment.)

My final piece of advice about personal credit is this: there is no reason to have more than one or two credit cards. Cut up the department store and gas credit cards. Get yourself down to just one or two MasterCard/Visa accounts. These cards can be used anywhere and some of them will earn you nice points or rebates. My Amazon Visa accumulates dollars I can spend on Amazon and, since I buy a lot of stuff there, I use them as they are accumulated. My AOPA MasterCard earns rebate dollars I apply to my account. Neither card comes with an annual fee and I pay balances in full every month so I don’t pay interest. This is free money, folks. It takes a lot of willpower to spend only what you can afford to pay off every month, but it is possible — I’ve been doing it for about 15 years now. Keeping your debt under control is the best way to stay financially secure when weathering unexpected hardships.

The Big Picture

What prompted this particular blog post is the news that the new tax plan will add an estimated $1.4 trillion (with a T) to the budget deficit. To understand what that means, let’s look at what a deficit is.

According to the Financial Dictionary, a deficit is:

A situation in which outflow of money exceeds inflow. That is, a deficit occurs when a government, company, or individual spends more than he/she/it receives in a given period of time, usually a year. One’s deficit adds to one’s debt, and, therefore, many analysts believe that deficits are unsustainable over the long-term.

(Again, I like that second definition because it applies to government, businesses, and individuals.)

Let’s look at an individual first. Supposed your take-home net pay is $3,000 per month. Every month, you pay $1200 for rent, $250 for utilities, $500 for groceries, $462 for your student loan, $100 for gas for your car, $80 for car insurance, $273 for your credit card-funded trip to the Caribbean and other stuff, and a total of $195 in payments toward your other credit cards. That’s a total of $3,060. Without even accounting for small miscellaneous expenses, pocket money, and the countless things I didn’t think to include here, you’re already running a $60 per month deficit. (Good thing your health insurance is a benefit that’s already taken from your paycheck; some of us aren’t so lucky and have to pay that out-of-pocket, too.)

So you increase your debt with cash advances or payday loans to see you through to the next month. Or maybe you’ve got some savings and you’re dipping into that to make up the difference. But eventually you’ll max out your debt and your savings will run out. What happens when it does? What happens when your monthly expenditures exceed income and you simply can’t pay what you owe anymore? Eviction, auto repossession, bankruptcy, homelessness. These are all possible.

This is the little picture — what happens when one person has a deficit. It’s easy to imagine it on a larger scale, like for a business. Think of a local retail business. The owner has to invest a bunch of money up front to set up the store with fixtures and get it properly decorated. He might have gotten a loan for that. Then more money to buy inventory. Rent, utilities, advertising, insurance. Then employees, with or without benefits but certainly with wages and employment taxes. He’s already at a deficit before he opens his doors. The business opens and he slowly builds a customer base. But what happens when/if revenues don’t cover monthly expenses? Or if a Walmart moves into town and half of his customers decide to shop there instead? More loans can help in the short term, but as the definition of deficit that I quoted above says, “many analysts believe that deficits are unsustainable over the long-term.” Of course they aren’t. When you spend more than you take in, you will eventually lose the ability to pay for what you’re spending.

CBO 2017 Budget Numbers
The CBO 2017 Budget numbers.

Now let’s look at the very big picture: the United States economy. The Congressional Budget Office has the numbers for 2017; the U.S. government spent $700 billion more than it took in for 2017. That means that the government added that $700 billion to its debt. And, according to the CBO, the country now has $14.7 trillion (yes, with a T) of debt.

(Suddenly, that $12,500 of credit card debt doesn’t seem so bad, eh?)

It’s hard to imagine $14.7 trillion in debt, but a few infographics show its impacts. First, here’s one from the CBO for 2016:

CBO Income and Expenditures for 2016
The CBO prepared this infographic for 2016. Can’t read it? Click here to download the big picture in PDF format.

I know it’s hard to read here — I had to reduce it to get it to fit in my blog page format. (You can download a PDF that’s easier to read.) What I want to draw your attention to is the number at the top of the chart on the left: Net Interest: $241 billion. So in 2016, the U.S. government spent $241 billion dollars on interest for its debt.

This next chart puts interest paid in perspective to various categories of spending. It’s from the National Priorities Project and is based on Office of Management and Budget (OMB) numbers for 2015. You can find it on the site’s Federal Spending: Where Does the Money Go page. I assume that this data is updated regularly, so if you’re reading this in the future, you may see different numbers. Here’s the spending chart that illustrates my point:

Total Federal Spending 2015
Here’s a breakdown of spending based on actual services provided. I think it’s tragic that the United States spends more money on interest for its absurd debt levels than it does for vital services that really can make America great again: education, energy, science, and food and agriculture, to name a few.

My point is this. Because we’re so deep in debt — and have been for a very long time now — we spend a huge amount of money just paying interest on our debt. That money could be going to education or health care or science. It could be doing so many things that actually benefit the American people — just like the interest on your credit card debt could be paying for a gym membership that might make you healthier or piano lessons that could develop your kid’s talent for music. Or any number of things that could make you or your family’s life better.

Why Are We Making this Worse?

These are the numbers. I know I’ve presented data from three different years, but it really doesn’t matter. We’ve been in this deficit/debt situation for a very long time now. Despite efforts to reduce the debt with a budget surplus as President Clinton managed to do during his term, the situation gets worse every year.

And now the Senate has approved a tax plan that will cut taxes for big businesses and the country’s wealthiest individuals, banking on a disproven “trickle down effect” to bring up the economy as a whole so more taxes can be collected. The CBO has already said that this budget will increase the deficit by $1.4 trillion over the next 10 years. Can we really afford debt service on that? What will we be giving up in order to pay interest on that debt?

Personally, I’m sick of Fox News-brainwashed right wingers complaining about Democrats increasing the deficit and debt. The truth is here for anyone interested in knowing it: the Republicans are even worse about budgeting. Last night’s ill-informed vote on a hastily prepared tax plan proves it.

Americans already pay among the lowest tax rates for individuals in a developed nation. We pay taxes for a reason: to pay for the services we get. When my house catches fire, I want the fire department to show up. When I drive to Seattle or Portland or Arizona, I want to drive on smooth roads and cross bridges that won’t collapse. If I had kids or grandkids, I’d want them to go to a school where the teachers were well paid, happy, and effective. I want the FDA to make sure the food and medications I take are safe. I want the FAA to make sure the planes I fly in are safe and that pilots I share the sky with are properly trained and certificated. I want to be as proud of my country today as my parents were when we put the first man on the moon.

US Taxes Compared to World
Pew Research study of U.S. taxpayer burden in 2015 compared to other developed nations. Get the details here.

None of this is possible without the revenue to cover the expenses of these services. Revenue comes from taxes. I’m willing to pay my fair share and I know that many others are, too. Why is that so hard for Republicans to understand?

As a fiscally responsible individual, I want this deficit budgeting to stop. Don’t you?

How can we ever expect our country to become “great again” if we throw away so much money on debt service?