is it the government's fault? is it the consumers fault? or is it the fault of banks??? n why is it their fault...(i hav to write n essay on this pls help!)
2006-12-27 03:27:02 · 2 answers · asked by hollym 2 in Business & Finance ➔ Other - Business & Finance
First is the bias & assumptions built into the question
('blame' implies there is some 'fault' and it is possible to identify some deliberate purpertrators of this fault).
To rephrase ... "Assuming Consumer Debt is a 'bad thing' and current Consumer Debt levels are 'too high', discuss how consumers have made this 'bad choice' ..."
Consumer Debt is high because it is easy to borrow money against income. Credit Card (and Mortgage) Companies are willing to lend large multipliers of your Salary (and often do not bother to demand proof).
Companies selling consumer goods are only to happy to sell to anyone, no matter what their Credit status because they get paid even if the Consumer is unable to pay off the debt.
Consumers are happy to take on Debt becasue they think they can borrow against their the rising value of their House for ever and their salary will go up for ever.
Since the Economy benefits from Consumer spending, the Government tends to encourage this.
In theory Debt is no problem so long as it never has to be repaid ...
2006-12-27 07:43:31 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
Legally it is your debt and your duty to pay it off. you may be prosecuted for not paying off expenses and definite you may face penal complex if the decide seems it in fantastic condition after a listening to.
2016-12-01 05:34:49 · answer #2 · answered by ? 4 · 0⤊ 0⤋