I think Dave Ramsey broke it down into laymen's terms for us...He said....pretend like the U.S. Government as a typical household family of four....the numbers are as follows;

1. They bring in $58,000.00 dollars per year
2. They spend $78,000.00 dollars per year
3. They have a credit card debt of $327,000.00 dollars
4. After they came up with their spending cut plan they will now spend $72,000.00 dollars per year, but they still only make $58,000.00 dollars per year.