This year, the rate of foreclosures has increased from problem to crisis, and it is of increasing importance that the problem be solved. More and more Americans are losing their homes as the unemployment rate rises and it becomes harder to pay bills. High foreclosure rates cause increased homelessness and struggling banks. Since home loans are backed by the fact that if payments are not made, the bank can take the house, i.e. foreclose on it, the bank is less at risk. The problem with this system is that when the real estate market is down, the banks cannot sell the house and lose money on the deal. When banks lose too much money, they are taken over, bailed out, forced to lay off employees or close completely. As a result of the current economic situation, foreclosure is driving banks into bankruptcy; when the economy is better, foreclosure is less of a problem. This is because people have the money to pay the house bill when they have a stable job with decent hours. This isn't to say that the economy causes foreclosure, it simply brings it when people make irresponsible choices. During prosperous times, many Americans buy more new things they don't need than during bad times. When thousands of Americans buy new things, they use credit cards and other loans, an unwise decision. If more people bought only what they can pay for in cash, excluding homes and student loans, and saved instead, in tough times they would have the money to keep their homes and buy food without problems. Instead, people often think they can only make minimum payments on their loans and spend the extra amount on extravagance. When their incomes decline, they become disillusioned. Among the results of these decisions is foreclosure. Being… middle of paper… getting fired before those with better education. In addition to being better trained for their jobs, college-educated people have an easier time changing careers if their jobs fail. The foreclosure crisis wasn't caused by one person, and one person alone can't solve it. To minimize foreclosures, people must work together and everyone must do their part. The government should reduce wasteful spending, as should individuals. Just because the economy is in crisis, doesn't mean people should let it drag them along. Citizens of the United States must work together to protect and help each other by avoiding irresponsible spending that leads to foreclosure, among other consequences. Foreclosure, in turn, harms banks and those who use and manage them. Together we can solve the crisis, divided we are victims of it.