Do Americans spend way too much on credit?

Im doin a research on consumer debt and just want to know do we as Americans spend way too much on credit and why? And can there be ways to fix this problem?

Do Americans spend way too much on credit?
Yes. The average US family owes over $8000 in credit card debt alone. I think that the overspending has a lot to do with "keeping us with the Joneses." A lot of Americans feel that they need to have the latest flat screen TV, two cars, a large house, etc. A societal attitude change would be necessary to fix the problem.
Reply:In short, Yes.


Way too much.


An education, good job, etc, are nothing compared to your credit rating.


The solution is self disipline, but it isn't taught. If you save your money for a purchase, you can own something much faster that borrowing for it.
Reply:I am of the opinion that 'Yes,' we Americans spend and rely entirely too much on credit. Need a car? How about a house? Vacation? All, generally gets applied to loans and credit cards.


When Jefferson wrote theDeclaration of Independence, he spoke of "Freedom." What he was referring to was financial. If you think about it, those with more money, have more options and are more free to choose. Those with less money, have less options available and therefore, are less free. Those with greater amounts of money, are less likely to be enslaved to their creditors. And, consider this: During the Clinton Administration, lobbyists for the various financial institutions and lenders lobbied for and got passed into law, a higher interest rate allowed on credit cards. It used to be that 9% was considered "High," currently, you can go as high as 29% interest on your credit cards. This now allows those lending companies the ability to offer 0% on credit card offers. But miss just one payment and instantly, you can go from oweing them a mere $2 or $3,000 to as much as (hypothetically -- I'm pulling this out of my hind end) $30,000 over night! With no recoursive action, because during this Bush's Administration, those same lobbyists pushed for and were granted tougher laws governing the individual's ability to file bankruptcy. It is a form of slavery, reconstituted and reinstituted.. The diabloical plan is that while it takes on average, 20 years to pay off a simple "loan" (credit card debt), with this added bonus of instantly raising interest, it could take a lifetime.


So how might we fix this? Repeal laws governing interest and bankruptcy and do away with lobbyists. Those lobbyists are stealing the ears of our elected representatives, meaning that you and I as individual, private citizens have no representation in Washington.


We should also look at restrictive laws governing who it is those lending institutions can target. As it stands currently, they intentionally look for and entice those they know must maintain a balance. Those who have the ability and track record of paying off monthly, their credit card debt are considered by those institutions to be "dead beats." With that small group, there is no money to be made.


Lastly, high schools and universities are not required to teach classes regarding personal accountability and finance. It is on these campus' that the lending institutions are setting up their tables and making such "great, free offers." These campus' need to be closed to these institutions or at least policies need to be put in place requiring certain restrictions be placed on those companies if they are to set up their tables. And those classes MUST be taught to the young who are most susceptable to these unethical practices.
Reply:Yes: we'd are cutting back on our "Budget Spending"


because of costly upon those imported goods from other forgin


lands .Also today fule prices is now $3.00 per gallon at all service


stations this year ! refer http://www.business.news.com
Reply:Credit spending in this country is out of control, look at the increase in personal bankruptcies. Very sad, too, because once you've gone that route, you credit rating is trashed for life. Used to be a time when people waited to buy something until they had the cash to pay for it; now people are so greedy %26amp; have to have things NOW, then they worry how they are going to pay for it later, and often they can't. I doubt there is a solution, the credit card companies are delighted %26amp; getting richer by the day. The only solution is for individuals to cut up those credit cards %26amp; refuse to rely on them.
Reply:Trust me, us English probably send TWICE as much on credit most likely due to Americanisation. Everyone has to have the latest plasma tv and the newest car, my family has always been brought up with, "if you dont have the money in your pocket you cant afford it".
Reply:Americans seem addicted to credit and currently aren't saving much money. I would be curious if the problem is just an American problem.
Reply:simple answer is yes





our society teaches us we need the best of the best and now! between that and the cost of living, we are almost forced into debt.





i think if we lowered interest rates it would help. and teach teens responsibility especially when it comes to finances. no credit cards to teens or students unless they are able to prove they can handle it.
Reply:#1 Yes





#2 We want what we want when we want it. Doesn't matter if we can afford it.





#3 We need to stop being so materialistic.
Reply:Yes, Americans have too much credit. The USA and Americans would never have achieved higher standards of living if it weren't for credit. I also think that credit is the capitalism way of life and the US is capitalistic.





There are ways of fixing the problem. People can be taught to use credit to their advantage and use it to increase passive income rather than using it to increase "bad expenses" and "bad" debt. Although banks are always happy to bet on the fact that a majority of people would not make the effort to learn how to use credit wisely, which is why banks make billions of dollars profit out of we, regular folks.
Reply:Yes,, they do. We are in a negative savings rate for the first time in america. It's almost completely to do with culture. In asia, they save up to 90 percent of their earnings or something ridiculous like that. Here, they save negative 1.2 percent. Its not just consumers. Our nation does that too. Without a recession, our economy cannot go on. To fix this, all the super in debt people will go broke and learn their lesson.
Reply:i think so.. its just so easy to spend with credit cards, cuz you get thing u want and at the time it doesnt even feel like your spending... i got involved in all that crap and now owe $17,000 + so yeah there bad.. fixing the problem... dont use credit for everything, its good but try to keep your limit
Reply:actually Japanese are far worst. according to the world back more than 56% of Japan is in dept. Billions and Billions of their economy relies on borrowing and dept consolidation


However dept is bad period. I would say that American are not the bad when it comes to dept
Reply:yeah
Reply:YES!!!! I personally don't use credit, because I have seen my 'savvy' friends who have everything up to their eyeballs in debt! Sure, I don't have the newest things, just waht I need to get by and live a little, and I am a cash and carry type person. Credit makes everything easier to buy, yet more hard to pay for later, and it's the way the average persson lives... I'm some sort of freak according to one of my friends because I don't buy all this new crap! LOL
Reply:yes americans should just burn all of them.
Reply:Yes, I believe that way too many people use credit for purchases today. The most simple solution to this problem would be if people paid for things with cash instead of plastic. It would pretty much prevent the whole debt situation and keep people on track financially. It's just too convenient to have that piece of plastic in your hands and see stuff you want. That leads to debt.
Reply:Probably. But many Americans don't understand how credit works. That said, I think Americans understand credit much better than the rest of the world, as credit cards introduced lately in other countries have been a disaster. People seem to think they don't need to pay them back.





I think there should be classes in school on credit so people know how to deal with credit properly. It's a major part of most people's lives, and something we as consumers don't know enough about.





You can find more info at http://www.thetruthaboutcreditcards.com
Reply:oh yah
Reply:Not me. I haven't had a credit card since '98. Don't need one.
Reply:americans are greedy!!!!!!!!!
Reply:Why is it that Americans are the ones always singled out? There are other countries in the world with the same problems.
Reply:yes and no
Reply:YES!!! If we don't have the money we shouldn't be buying it! There are sooo many people who are out there living way beyond their means!!!
Reply:Are you writing a paper? Hopefully the "Im doin a research..." portion of your question is just for us, because if you start a paper out like that...you may very well get a failing grade. This despite your best intentions.





Many people are in deep debt. Our Administration seems to be fond of borrowing billions of dollars and so I would say the answer to your question is Yes. However, personal debt is quite a different thing than say -- the National Debt. Many countries borrow money from the USA and fail to repay it. Do a search on these subjects and see what comes up. Good Luck.
Reply:USMcsting not withstanding, the answer is obviously yes. As individuals we seem to lack discipline and a sense of personal responsibility. As a society, we borrow from the future to pay for dubious gains and pleasures of the moment.





Some folks really really seem believe that we have an obligation to enrich the private class, perhaps under the mistaken impression that with endless frivolous buying we help the overall economy.





The overall economy would be much better served by people living within their means and not giving merchants and vendors the erronious impression that we will endlessly pay ever more for their goods. It's that impression that has created the continuous inflation of all our basic commodities.





If people just stopped buying all the silly stuff, the economy would cool down to a rational level. No one would lose their jobs, and prices would come down. People could afford houses, education and medicines if they didn't waste their money on plasma tv's and ipods. It's really pretty obvious.
Reply:Yes! And it's because we want to live at a level that we really cannot afford.





The fix is easy: buy what you need, not what you want.
Reply:yes
Reply:Absolutely. It's way out of control. Put money in the bank and retirement accounts, buy nothing on credit unless REQUIRED, and then pay off as soon as possible. I know too many people who think credit is some free ride - and it usually just turns today's desires into tomorrow's desperation.
Reply:Yes, and while you are at it do a little research into National Debt. Our goverment has spent all the tax money, after salaries and squanderd it away on wars and spying on Citizens of thier own country, And pork bellies, and unused farmland while americans go hungry and other stoopid stuff.


I am niether Elephant or Donkey, I aint even a Independant. I do not endorse any political/religious party platforms because the ones we have used for the last 100+ years have not only taken us off any real currency and handed us Bills of Note, but they also borrowed or spent $s that my grandfather paid them.


We are on a downhill runaway train and there isnt any conductor or brakeman that could help us out.


So enjoy the ride while it lasts.
Reply:nope..














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