This year, the foreclosure rate has gone from a problem to a crisis, and it is increasingly important that the problem be solved. More Americans are losing their homes as unemployment rates rise and it becomes harder to pay the bills. High foreclosure rates lead to increased homelessness and difficulties for banks. Since home loans have the security of the fact that if payments are not made the bank can take the house, also called foreclosure, the bank has less risk. The problem with this system is that when the real estate market is down, banks cannot sell the house and lose money in the transaction. When banks lose too much money, they are either bought out, bailed out, forced to lay off employees, or shut down completely. Due to the current economic situation, foreclosures are driving banks into bankruptcy; when the economy is doing better, foreclosure is less of a problem. Indeed, people have the money to pay their housing bill when they have a stable job with decent hours. This is not to say that the economy causes foreclosure, it just leads to it when people make irresponsible choices. In good times, many Americans buy more new products they don't need than in bad times. When thousands of Americans buy new, they use credit cards and other loans, an unwise decision. If more people only bought what they could pay for in cash, excluding housing and student loans, and instead saved for tough times, they would easily have the money to maintain their homes and buy food. Instead, people often think they can simply make minimum payments on their loans and spend the excess on extravagances. When their income decreases, they are wrong. Among the results of these decisions is seizure. Be...... middle of paper......to be fired before those with the best education. In addition to being better trained for their jobs, college-educated people have an easier time changing careers if their workplace fails. The foreclosure crisis was not caused by one person, and one person cannot solve it. To minimize foreclosures, people must work together and everyone must do their part. The government should reduce unnecessary spending, just like individuals. Just because the economy is down doesn't mean people should let it take them with it. Citizens of the United States must work together to protect and help each other by avoiding irresponsible spending that leads, among other consequences, to foreclosure. Foreclosure, in turn, harms banks and those who use and exploit them. Together we can solve the crisis, divided we are its victims.