2006-07-05 10:58:35 · 15 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Easy- because that is how we have been taught to manage cash flow in our economic system. Our system, from the federal government down to the banking system is dependent upon debt.
By the way, debt isn't necessarily a bad thing. Another word for debt is leverage. Lots of people have become very wealthy using leverage!
2006-07-05 11:01:38 · answer #1 · answered by cigarnation 3 · 0⤊ 0⤋
Only 2/3. I'd say 90% of Americans are in DEBT.
That's the way life is. Some use it for investing, some business. some to purchase. Having a debt isn't a bad thing and just because 2/3 are in debt isn't bad either. Our whole economic system rides on it. If the FED's raise interest rate the market falls and if they lower it inflation occurs. It is balancing act.
But if the 2/3 of the American working middle and lower class are in DEBT than it's just because they have a trouble managing their money or they own property.
2006-07-05 11:30:49 · answer #2 · answered by rpatel2369 2 · 0⤊ 1⤋
I wonder what kind of debt is meant when I see these numbers. I mean, every time you buy a house or get a student loan you take on debt, but these debts are not because a person is bad with money. (a mortgage means that a person has to be relatively good with money, actually, because a bank is lending them a huge chunk of change) How many of these people in debt have mortgage debt as opposed to credit card debt? These statistics can sometimes appear to say frightening things, but you need to look at all the numbers to get the whole story.
2006-07-05 11:22:24 · answer #3 · answered by cay_damay 5 · 0⤊ 0⤋
You need a credit card to get some credit to buy, really, anything, like a house or car. So almost every american get a credit card. And let's face it, its pretty hard not to overspend with a credit card. Most people can't pay it off, and with the interest, a lot of americans fall in debt. Like my mom. We have bill collectors calling literally every 20 minutes at least, there are 31 messages on the answering machine now. These two people Cora and Nick really like to call, they're from american general i think.
2006-07-05 11:03:45 · answer #4 · answered by Meg 2 · 0⤊ 0⤋
The problem is that people no longer want to live their lives with simplicity. The American way is to buy now and pay later. A lot of people just cant live without the latest and the greatest or anything new that has come into the market. This allows most people to feign their existence spread out over endless monthly payments. What is the problem with drinking out of a glass that cost you $1 at a dollar store as opposed to one made out of Austrian crystal? For me lifes simple pleasures are the best.
2006-07-05 11:11:52 · answer #5 · answered by diaryofamadblackman 4 · 0⤊ 0⤋
Rising inflation, rising gas prices, rising costs of living, rich guys in the White House and Congress...
What is middle class? Did you know that your annual household income, on average, must be nearly $100,000, to literally be considered "middle class"? Costs of living are increasing at a faster rate than salaries. You have to live, so some people have no choice but to go in debt.
Being in debt isn't a problem, it's how you handle the debt. Some people just aren't responsible enough to pay their bills.
2006-07-05 11:04:05 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Well, part of that is that owning a house is considered debt. If you own a house and are paying a mortgage, you are in debt for the value of the house. Does that mean that everyone that owns a house has other debts? No.
2006-07-05 11:00:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋
well see if you really were smart you would know that you say intrest every dollar you spend with a credit card and thats not counting tax that the store charged you.But credit cards are good to build up you credit score well thats what some people think untill they get the urge to use the card that is when all the problems come in.I just think there dumb anyway!I am not in debt though my credit score is 716
2006-07-05 11:02:58 · answer #8 · answered by preppyfashiongirl101 1 · 0⤊ 0⤋
the majority of the 2/3 of the country is 55 or over. We are unacceptable in the job market. Many are displaced due to companies closing, companies scaling down, and those who have to move back to their original family location. When you move back , you fall into the first point that I listed. Credit cards are not the only reason.
2006-07-05 11:06:23 · answer #9 · answered by Chris G 3 · 0⤊ 0⤋
Probably you can ask the 1/3 why they are not in debt? It's in fashion isn't it?
Seriously, they are in debt because they need money to get their life going, or they can't manage money well, or life crisis such as divorce or accident... there you go, many reasons.
2006-07-05 11:02:05 · answer #10 · answered by teddybear1268 3 · 0⤊ 0⤋