Is the United States way of life designed to put and keep people in debt?

Question

also, what do you think of Ws overhaul of the bankruptcy laws with the help of MBNA?

Harley and ilk: hope you (or loved ones) stay VERY healthy the rest of your lives- and dont lose that job of yours

Answer 1

Ultimately it is the responsibility of the individual to make sure they are financially solvent and stay out of debt. Stuff happens though, divorce, job loss, sickness. Credit card bills pile up and you are facing a mountain of debt that you can never climb out of.
The American way of life could certainly seem designed to keep people in debt. I mean everyone wants the newest car and biggest house and most expensive clothes all in a pathetic attempt to validate themselves and do better than their neighbor. It is shockingly easy for 18 year olds to get credit cards and before they graduate college accumulate 20 grand in credit card debt.
Bushs overhauling of the bankruptcy laws was solely to the benefit of the credit card companies.

Answer 2

There should probably be a required course in high school (or earlier) to start educating consumers (which is what each graduating class is viewed as by marketers) about financial responsibility, but even with such education, the ultimate issue is one that I feel is pervasive in American society today...and that is - lack of personal accountability. No one holds a gun to anyone's head and forces them to A) apply for credit cards, B) abuse the credit extended to them, and C) remain ignorant about how to manage their money (or lack of it).

That being said, I think it is unethical and abusive for credit card companies to charge the outrageous rates that they are allowed to charge, and utilize the relatively new "Universal Default" policies as a means of hiking rates after a consumer makes even one late payment on another account elsewhere. My husband and I maintain several cards, always made every payment on time, always paid more than the minimum amount, and had an excellent credit score. The cards we have are not so that we can live beyond our means, rather, to make the occasional large purchase for our home or business, which is always a thoughtful and budgeted decision. After one payment posted one day late on one card (and, I would like to point out, this payment was made on time by us, but posted later than its due date as a direct result of the credit card company's posting policy), two others hiked their interest rates to over 30%, using the "Universal Default" law as justification. This was not fair, but, as we had received a mailing on it, we had no recourse with those credit card companies, and were forced to seek other companies with more reasonable rates to transfer balances to - no easy feat. So, it would seem that the credit card companies DO actively implement ways of keeping a consumer behind the eight ball...but again, it is ultimately up to the consumer to not let their pocketbooks be raped and pillaged.

My advice is to shop for the best interest rates, don't do business with loanshark-like companies, and know their payment posting policies.

No comment on anything done by this administration.

Answer 3

1) No, the United States allows people the freedom to buy and sell what they like, and the stable currency and perfect payment record of the United States federal government, as well as a clear legal structure that for the most part enforces legal contracts rather than limits what they're allowed to say, results in a good supply of credit.

2) I think it's fine - bankruptcy is from the Latin "broken bench" - it used to mean that's it, we liquidate you. Don't borrow what you can't pay. If someone forced you to borrow they have lender liability laws for that - and they're real aggressive because they know you're not as sophisticated as MBNA. But if nobody forced you to borrow the money and you borrowed it and didn't pay it back, why should you get out of it easy?

Answer 4

Businesses are always out for your money..in any country. I'm glad Mr. Bush toughened the bankruptcy rules. Now, they need to do something about all the credit card companies. THEY are the ones that are helping destroy people. A friend of mine filed bankruptcy a couple of years ago and was bombarded with credit card and auto loan offers. He was getting offers in the mail and on the phone before the bankruptcy was finalized.

Answer 5

I wouldn't say it is designed to put and keep people in debt but it certainly has the potential to. Our way of life can also make you independently wealthy but I wouldn't say it is designed to do that either. It's up to you and the choices you make.

As for the bankruptcy laws, I do agree with them. Too many people got away with racking up the bills and then not paying them. Remember the CC companies also had to change.

Answer 6

No it is not. American's are responsible for thier way of life. If rising prices are putting a strain on the budget, change your way of life. For example, instead of complaining about gas prices, free up cash in your budget by trimming uneeded items, such as cell phones and broadband internet. Or get a second job to supplement your income.

I am quite happy with the backruptcy law changes. No one should get off free. There should be some sort of accountability for your actions.

Answer 7

Our own personal consumer choices keep us in debt, nothing else. I'm not up to date on the bankruptcy laws, but personally I've never thought luxury homes, cars, boats, etc. should be exempt.

Answer 8

No...people living beyond their means and justifying unnecessary things as necessary is what gets people into debt. The overhaul of the bankruptcy laws was okay, but requiring people to pay higher monthly payments on credit cards just puts them in a worse financial situation and makes it harder to make ends meet, leading to more debt. .

Answer 9

Welcome to Corporate America!!!!
Have you ever heard of the Company Store? Coal companies would have a General Store, the only one in the community, and workers were allowed to charge the necessities to an account or tab. All this at inflated prices. When payday would come, all of ones pay would go to the company store, plus you would still owe because you never made enough to completely pay off the debt. If you quit mining coal (quit your job) you were expected to pay off the debt.
Besides this your home was owned by the company also.
Credit Cards, Home loans, pay day loans, etc. are all designed to keep us in debt.

Answer 10

People choose to be in debt and need to educate themselves on finances. Live within your means and quit blaming the government. The laws SHOULD make it extremely difficult to file for bankruptcy.
edit: My loved ones and I chose to put ourselves in a position to be taken care of by taking personal responsibility.