We all take steps to lower our own personal debt. But what steps are you taking (or willing to take for that matter) to lower America’s debt?

A recent article from CNN Money reports on a rarely mentioned law passed in 1961 that allows individual citizens to make contributions toward lowering the national debt.

Here’s how it works.

National Debt Vs. National Deficit

As the web site for the Public Debt (www.publicdebt.treas.gov) explains, there is a difference between national deficit and national debt.

• Deficit refers to the annual difference between money the government collects in taxes (i.e. government revenue) and the amount it spends. In other words, the deficit is contained in yearly chunks.
• Debt refers to the accumulated deficits plus any surplus spending not mentioned in a year’s budget but spent by the government. In other words, debt builds up as the years go by (assuming the government is running a deficit).

Thanks to heavy government spending to help get the nation out of the current recession, our national debt and current deficit are both considerable – in fact, our country’s current debt level is $12 trillion – and it will get bigger before it gets smaller.

Giving to Uncle Sam

So, it seems, concerned citizens can make tax-deductible payments in any amount to help ease the nation’s debt. Currently, Americans have two options:

• Send it with your tax return: You can send a check when you next mail your tax returns.
• Send it today: Or you can mail it to the address provided on the aforementioned web site.

Do Citizens Actually Lower America’s Debt?

You may be wondering whether this program actually yields the government any earnings. Sources indicate that, in fact, it does – but very little.

Donations to date this year, for example, have reportedly totaled a little more than $3 million – hardly a drop in the debt bucket, really.

In fact, the best feature of this law may be its potential for stopping the complaints of citizens. While few of us are thrilled about the prospect of covering the government’s expenses in years to come, even fewer of us enjoy listening to others gripe about this phenomenon.

So bring up this law next time. Tell whiners to send a check.

Get answers on how bankruptcy may help you lower your personal debt.

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