I ask this because a few months ago I had about $1,500 in credit card debt at about 9% interest. I thought this was a lot. Then I read that the average American has credit card debt in the amounts of 2x-10x what I have here, and at double the interest rate.
Why are Americans willing to borrow so much? Does this correlate to the national savings average being a negative percent? And lastly, once everyone is totally broke and so far in debt that they can never pay it off, who is going to foot the bill in the end?
2006-07-04 14:16:40 · 14 answers · asked by opticalnoise 4 in Business & Finance ➔ Credit
For the record, I am an American, living in America. I have no idea how anybody got the impression that I wasn't from America.
2006-07-05 15:45:07 · update #1
Because they like spendin mony they don't have.
2006-07-04 14:18:58 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Credit Card companies send mass mailings for offers constantly. It is so easy to obtain, that the poor Joe Shmuck, will apply to get instant cash, and be indebted forever.
The other credit card holders end up footing the bill in the end, reason why interest rates are no where near 9% on the average card, try 18 to 24%.
2006-07-05 02:34:42 · answer #2 · answered by DollyLama 5 · 0⤊ 0⤋
And your country's economy is???? To only have 9% interest on credit cards. (I do admit that some people do have fairly low rates of interest on their cards here, but it's not the norm)
You seem to be basically in the same financial shape, in your country, as the Americans you are talking about.
You said it yourself - that you have a $1,500 credit card debt at 9% interest, then go on to say that Americans have 2x the debt at 2x the interest rate.
Sooooo, it sounds like if you were an American (or if your country had the same economy as America), you would have a debt of $3000 at an interest rate of 18%.
Or, if America had the same economic rate that your country seems to have, Americans would have a $1500 debt at 9% interest.
2006-07-04 21:28:09 · answer #3 · answered by echo 7 · 1⤊ 2⤋
Americans are programmed from birth by the media/marketing/entertainment machine to believe that possessions are the source of happiness. Most Americans keep buying hoping to find happiness, but instead, like an addict, they find that when their last hit wears off it just makes them hungrier for the next.
And all the while, happiness is sitting right in front of them waiting for them to choose to have it.
2006-07-04 14:20:59 · answer #4 · answered by Hillbillies are... 5 · 1⤊ 0⤋
Because they do not know cash management how to take care of money they dont spend it wisely , and it is better not to have a crdit card because you pay atleast 5 % of what you spend in a daily transaction as if you carry cash you will not be charged interest.
2006-07-04 21:33:59 · answer #5 · answered by rav 3 · 0⤊ 0⤋
It doesn't help that the government urges us to go out and shop to "strengthen the American economy", or else we can consider ourselves un-American. C'mon, give me a break!
Not that I do this...
2006-07-04 14:20:54 · answer #6 · answered by Lily Iris 7 · 0⤊ 0⤋
because people want everything NOW instead of waiting; they're leaving themselves open to a miserable retirement and old age
2006-07-04 14:21:18 · answer #7 · answered by oldbuckhorn 4 · 0⤊ 0⤋
Because of facebook
2015-05-28 09:50:06 · answer #8 · answered by ? 2 · 0⤊ 0⤋
Not Americans- - - - - SOME Americans. My balance is zero.
2006-07-04 14:27:13 · answer #9 · answered by Anonymous · 0⤊ 0⤋
because most people live beyond their means.
2006-07-04 14:20:05 · answer #10 · answered by Virtuous 3 · 0⤊ 0⤋