Are we living in a debt ridden society where it is becoming harder to keep on top of our finances, if so why?

Answer 1

Yes our society is seeing an increased amount of debt.

But no, its not becoming harder to stay on top of our finances. With increased technology it is becoming exponentially easier.

The problem is people have shifted toward demanding things now rather than saving for them. In turn, they are willing to borrow beyond their means without doing the proper research.

Debt is easily avoidable and there is no excuse to become overwhelmed.

Answer 2

the economic principle teaches us that as human beings we have unlimited wants and limited means and we would try our best to satisfy these needs with our limited means. If you want one thing u will always sacrifice another. This is called an oportunity cost. However, society has become more advanced and people think about more and more ways to satisfy a bigger percentage of these needs. To do this they get richer. Marketing people use stratergy to make you believe that you need and want things that you really have no use for. (almost everyone of us has baught something that we used only once before it was forgotten) Finance people create interest, loans and credit cards so that we can spend without realising that we are overspending as we cant physically see our money diminishing. And so instead of sacrificing a bag for a designer shoe we can buy both and in two different colors. And in this way they get richer and we get happier but poorer and wer steeped in debt. And then ofcourse theres the concept of keeping up with the Joneses!!!!:

Answer 3

The only reason it seems like it is becoming harder to keep on top of our finances is because you refuse to accept personal responsibility for doing so. The vast majority of people in debt could get out if they would just stop purchasing so much unnecessary stuff. Look at the irresponsible parents who buy their kids $100 jeans and sneakers when your can get the same quality for far less. Ease of getting credit is not the problem. The problem is using said credit responsibility, that means not buying anything on credit for which you can pay cash and not buying anything until you have cash to pay for it. Learn to wait for stuff until you can afford it. If you buy something on a credit card, pay the full amount at the end of the month. If you are in debt, pay the debts off starting with the smallest ones by paying as much as possible on them and don't incur more unnecessary debt.

Answer 4

Yes. It is has become too easy to gain access to credit, with credit cards topping the list. Once you have one, which is usually the hardest to get, you can get more simply by switching your balance. Many people use one card to pay off another card but never actually paying any money to clear the balance. When their cards are maxed they just switch to another one and their debts mount up over a period of time. Then suddenly they find they are in over their heads and can't afford the anything but the basic payments on their cards and the interest keeps adding up too. They the try and sort it out by getting a loan from a company, by putting their house up as collatoral. They may pay off their existing debts but with their spare money going on repaying the loan they soon start on the same cycle and end up losing everything. The only real way out is to get one of these debt management companies to help you. They do not give you a loan, they contact your creditors and usually manage to stop the interest payments being added, then can arrange a more suitable payment that won't leave you on the breadline. They will also help you arrange a monthly budget and show you how to work out how to manage your money. Sad but true. I try and abide by a saying that my Grandmother told me - If you can't afford it, you don't need it. In plain words - if you can't pay for it, without buying on credit, then don't buy it.

Answer 5

It's too easy to get credit. There are so many people who seem to feel that it's 'easier' to buy now, pay later, even if it means paying huge interest rates. The way I see it, if you can afford 29% interest, you can afford to save up and buy it outright! The only money we owe is our mortgage, and even that we're overpaying each month, and a couple of credit cards that have each got a few hundred pounds on. Not that I'm being morally righteous or anything, but why on earth do I want to get into debt to get the latest gadget or gizmo? Why why why?

Answer 6

Of course. Doesn't matter much the payscale these days...earn more, spend more...why? Because you can.

Credit cards. Lines of credit. Credit this. Credit that. Minimum payments. No money down. Same as cash. No payments for 6 months. And of course there are the 'interesting' interest rates.

And where does savings get so heavily marketed into the picture? It doesn't! Why? Because they [said financial institutions] WANT you to SPEND your money..be forever in debt with them-ho, ho, ho...but make sure to make your payments on time there little one...or the hiked interest rates, and penalties will bleed you for every penny you already do not have to begin with...

Oh yes...People end up sucking themselves into believing they can spend money that they really don't have, and make a minimum payment that will pay the bill for the charge. Easy, right? $2,000 credit limit...$10 a month payment...hmmmm...WRONG!

You just spent $2,000 that you didn't have to begin with, and now you think it'll be so easy to be on the $10 a month, 10 year plan to pay it back??? Think again kiddo.

And the plans to up the minimum payments [taking my example used here...credit cards] to "force" people to pay themselves out of debt sooner...think again...because as I said, people have already spent well over their heads to begin with...and now you're up'ing a minimum payment they already cannot make, then you'll penalise them when they fail to make it...and now they can't even file for bankruptcy to seek relief from all the hikes you just imposed.

Of course we are debt-ridden. Easier means to spend money that we just do not have, people are not being educated well enough to know how to save or plan for future, heck...to even have enough money in the bank for a rainy day or emergency, rather than living hand-to-mouth.

We've gone well out the window in lack of education on how to smartly manages finances...we spend far more cash than we really do not have, only to have to make the attempt to "pay the piper" later on...

Answer 7

Its a case of trying to 'keep up with the Jones' '. Years ago it didn't necessarily matter if you wore hand me down clothes or didn't have a car or lived in a council house, because everyone was exactly the same. Now though, people can't stand the idea of someone having something newer, or better or more expensive than them and will go to any means to fit in a be the same.

Answer 8

Yes we are and you don't have to look far to see why.Your first priority is somewhere to live so the first item on any ones budget is rent or mortgage.This Chancellors proud boast is that he has kept inflation low yet in the last nine years house prices have rocketed.No problem there is no difficulty in borrowing money as long both partners work and granny is still around to look after the kids the banks estate agent and solicitor are coining it so every ones happy or are we?

Answer 9

Consumerism, keeping up with the Jones'ism! Lots of people think they need the latest this and that. There is too much focus on having material things in the world, they don't give lasting happiness. Also the concept of more, more, more, I'll be happy when I have that new car, bigger house, better job, lose a few pounds, why not be happy with what you have now, why wait? x

Answer 10

Yes we are and i dread to think what is going to happen to everyone if there ever is another recession..look at house prices they are just stupid now...everyone has to have a new car and all the latest technology gadgets but they all buy on finance and the number of people i notice using credit cards to buy their groceries...don't know why it is so...suppose if you have a good credit score the banks throw loans and overdrafts at you for fun