Why do Americans allow themselves to owe so much money to credit card companies, other people, banks, etc. etc.? I, myself, cannot sleep knowing I owe money to someone, yet to most people, it doesn't bother them at all? Why do you need to have the fancy toy NOW, when you can wait a few months and actually earn the money to be able to pay for it off completely (obviously, I'm not including houses, cars, or education in the equation because most people can't pay for those things outright). Do you really need that $500 wardrobe, $1000 jewelry, $1400 TV or $30,000 SUV?
2007-01-12 07:45:15 · 9 answers · asked by trer 3 in Business & Finance ➔ Personal Finance
I agree with you. However you have to realize that credit card companies target young people. I just turned 18 about 6 months ago. I have had EVERY major credit card company encourage me to open an account with them. I do have one credit card. It has a whomping 35 dollar debt to it. However, I have a very strong will. Kids always get a credit card thinking "oh, I'll be mature with it. no problem." Only how many really are? The second that you use it, it gets easier to use it a second time. I blame the credit card companies. These kids get 1000$ credit line and blow it in one week and think oh, i'll pay this off no problem. But when it comes down to making a 200 dollar payment, no one really does, they make the minimum payment possible and think "oh i'm good, i paid it for this month." I don't think you should be allowed to get a credit card until your 22. That way your out of college, your not just turning 21 (liquor binge is over...haha) and your more responsible (hopefully).
2007-01-12 07:57:57 · answer #1 · answered by Modern_Monroe 3 · 0⤊ 0⤋
I agree with you wholeheartedly on this issue. I personally do not use debt to finance wants, since it will only get you in trouble in the long run. Unfortunately, many people do not share that philosophy. It has to do with the human tendency to discount the future. To most Americans, the future is relatively valued pretty low. They would rather spend the money that they may not have now and incur the finance charges than wait until they can save the money up to purchase it outright. This is the same reason so many individuals go into retirement with relatively little savings. To them, the future seems so far off until its not and they wind up living on very little or in bankruptcy court. It's a sad situation, but one that is unlikely to change anytime soon. Good observation though, and you should be commended for your good stewardship with money.
2007-01-12 15:58:10 · answer #2 · answered by theeconomicsguy 5 · 0⤊ 0⤋
Americans are image driven. Just because there not doing any better than anyone else they like to appear that they are. To say hey I made it look at my car. You drive a piece of crap but I just got a new Hummer. Therefore I look like I have my crap together but the only thing holding it together is the refinanced house and the adjustable mortgage.
2007-01-12 17:00:27 · answer #3 · answered by Joe A 2 · 0⤊ 0⤋
Because the majoriy of Americans aren't taught a thing about how to manage money. It's really quite simple if you ask me. It all comes down to self control and discipline which America is sorely missing.
2007-01-12 16:11:04 · answer #4 · answered by BamaJJP 3 · 0⤊ 0⤋
That's a good question and eventually we (collectively) will have to pay the piper. I guess we will continue on this road of destruction until that day.
2007-01-12 15:57:58 · answer #5 · answered by rbarc 4 · 0⤊ 0⤋
It is called keeping up with the jones's.Too many people are hung up on material things.
2007-01-12 15:58:13 · answer #6 · answered by SusieQ64 2 · 0⤊ 0⤋
They really think they are the richest country in the World.
2007-01-13 04:23:00 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Hey, Life is GOOD HERE ! We have lots of nice things !
2007-01-12 15:54:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Simple: because it is getting easier and easier to get out of it.
2007-01-12 15:53:32 · answer #9 · answered by Agata 2 · 0⤊ 1⤋