How can we get people to quit playing the credit game and start relying on personal savings so that our nation

Question

( US ) and its people quit overextending themselves.

Answer 1

Most people just aren't aware of how much money they throw away on interest. In fact, I don't think most people even keep any record of their personal finances. It would take some serious social engineering to get people out of the 'credit game.' Perhaps students should be learning about personal finance in schools. It just doesn't seem fair to send them into the real world without knowing the advantages and potential dangers of credit and the importance of vigilant record keeping. Heck, most adults don't even know how a 401k works.

Personally, I've managed to beat the credit game in many ways. For example, I do not finance new cars. Instead of paying $300 a month to a creditor, I put $200 dollars a month into the bank and occasionally role that money into high-interest CD or other safe investments. After 4 or 5 years, I have enough money to buy a car with *my* money, not a creditors money. That translates to a few thousand dollars that I can spend somewhere else.

Answer 2

I wish people would do that too. I learned the hard way supporting my ex's spending habbit. $25,000 in credit card debt later I don't touch the cards. I use my Debit Card now for everything so at least then it I over spend I get a overdraft notice :))))

The economy would get hurt alittle bit once people stop using credit cards because then not as many goods would change hands. But over time the savings people build up by using cash would more than offset that and eventually there would more money into the economy once people use cash and savings to buy there goods.

Answer 3

The problem is that studies show most American debt is not attributed to recreational spending, but in fulfilling needs.

The problem is that most people HAVE to use credit at some point to stay afloat, and then cannot pay it off due to the radical interest. If the job pay:living expense ratio was where it should be, this would not occur.

Answer 4

Although Americans are reported to be extended almost to their limits, reports are also coming out that bankruptcies are down significantly. This is good news for the banks, and to tell you the truth, it is good news for the companies whose products and services are being purchased.

That being said, you do have a very legitimate concern. An individual will have a much better chance to thrive if he/she is not saddled with debt. Usually, what it takes for change is for a person to experience a traumatic experience, or they will continue down the spending/credit path.

Answer 5

The credit card companies should stop giving away credit cards to every irresponsible person in the US.

Answer 6

We could start by walking to work.

Answer 7

hah...good luck with that....