As I write this there is a crisis in America in the sub-prime lending industry.

A sub-prime loan happens when homebuyers with low credit ratings are offered mortgages with high interest rates.

Advocates of sub-prime financing tout it as a way for low-income residents to own their first home. This crisis clearly shows sub-prime loans are having the opposite effect.

Well, knock me over with a feather.

You mean to tell me that low-income people with bad credit and poor money habits are having a hard time keeping up with the payments on a high-interest mortgage and the myriad expenses of home ownership?

That's crazy! I don't believe it.

As the kids today say, "Well, duh."

Truth be told, I haven't really thought much about the so-called crisis.

I consider one of my jobs to be educating people about the pitfalls of homeownership and debt.

If you need a sub-prime mortgage to get into a house, you have no business trying to buy that house. Your American dream can quickly turn into an American nightmare.

Buying a home doesn't just mean mortgage payments. There are property taxes, running around $300-$400 a month for a modest home here in upstate New York. Then there are utilities--usually higher for a house that is twice the size of a typical apartment. Don't forget maintenance and repairs, and extra appliances and lawn equipment. You'll have to buy furniture to fill the house. Don't forget the decorating--window treatments, new floors or carpets, paint and fixtures.

If you have a low income and bad credit you should have ONE goal in life. Ok, TWO goals. Well, now that I think about it, THREE goals: earn more money, learn good money management skills and improve your credit.

Get yourself to the library and get some books on making extra money. Invest what little money you have in making some extra money and learning how to manage that effectively. As you do, you'll your credit score will go up and up.

The old "I'm building equity argument" is a crock. Low-income earners buying their first home with sub-prime loans are not buying houses that go up in value.

They have no money for upkeep or to make improvements so the value of the house goes DOWN.

So, if you've been thinking about getting a sub-prime loan, FORGET it. You won't be better off.

If you're feeling pressured to buy a home, you definitely want to avoid a subprime mortgage. "Feeling pressured" is the same thing as "peer pressure". WHY do you have to buy a home right now? Who says?

If 95% of the American public aren't financially independent at retirement, I would venture a guess that most Americans don't know what they're doing when it comes to money. So why would you follow their "conventional wisdom"? I will hazard a guess that you can say the same in just about any other country with consumer debt issues.

Be different. Have the courage to wait while everyone else rushes in. Learn how to make more money and become an expert at saving and investing. There is absolutely nothing like the feeling of buying a home with a large down payment and plenty of money in the bank to handle all the expenses that come along with home ownership.

It's priceless (and it isn't bought with a credit card).

After all, what good is a new home if you can't sleep at night wondering how to pay for it?

Avoid those subprime mortgages and wait a bit. You'll be infinitely glad you did.

A financial educator for over ten years, Leo Quinn Jr. specializes in helping people get out of debt and stay that way. His "How to Own Your Paycheck Again" program has helped thousands of families improve their finances and escape the debt trap. Visit Leo at http://www.OwnYourPaycheck.com