My teacher gave me this question and i don't know what to say about the matter.
Are you able to help me.
2007-11-05 03:49:11 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes. Owning a big house is definitely socially acceptable and almost every one goes into debt to do this. In fact the gov't encourages this debt by giving you a nice tax deduction for your mortgage interest payments. Many business, such as Donald Trump's real estate empire are built entirely on debt financing.
The caveat is that it becomes not socially acceptable if you take on more debt than you can service (make payments on.) This starts to become not socially acceptable because you are living beyond your means.
However, consider the U.S. which is the world's largest debtor nation. It has more debt than any other nation, and the national debt continues to grow through massive deficit spending. It pays off its debt by taking on more debt. I'm not sure if this is socially acceptable or not, but it is the status quo.
2007-11-05 04:31:20 · answer #1 · answered by JMP 2 · 1⤊ 0⤋
Think about it--there are very few people who are NOT in debt. Just because you don't have tons of credit cards doesn't mean you don't have debt--owning a home will put you in debt unless you're filthy rich and can buy it with ALL cash down. Having a car, even an older one, will probably put you in debt. School loans, as long as they are reasonable, are also normal debt to have.
There is nothing wrong with having debt, as long as it is the right kind (affordable car, house, student loans) and not the bad ones (credit card, payday loans, etc).
2007-11-05 05:12:47 · answer #2 · answered by SMS 5 · 0⤊ 0⤋
Unfortunately, yes. There was a time when shame forced people to have higher standards of personal conduct. Much of that shame came from peer pressure, you were looked down on if you didn't pay your bills, and 'going on relief' was shameful. Today, being in debt is no big deal (wrong, it can be) and being on welfare is a right.
2007-11-05 03:54:53 · answer #3 · answered by curtisports2 7 · 1⤊ 0⤋
Since a majority of society is in debt I guess it's the "in" thing.
2007-11-05 03:56:49 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Actually, I think it's MANDATORY if you want to be classified as a real American! haha
2007-11-05 03:57:08 · answer #5 · answered by teacherhelper 6 · 1⤊ 0⤋