Many consumers in America have great debt. In the average case a consumer has 1.5 times every year income in short-term debt; prestige cards and car payments. This is dreadful as many Americans if they lose their jobs they will be out of cash to live within 2.3 months. In a wise America citizens would have at bare minimum 10 times their monthly income in savings and should be living under their means and income level to supply for savings for the future.
Debt is a choice and seems to petition to those who find themselves wanting instant gratification. Some argue that the cost of living is so high, that they remain in debt just to live. Yet in genuinely finding at the situation the consumer is permanently rewarding themselves in enlarge with items, which are not thoroughly important for important life needs; food, water and shelter. One who is truly honest with themselves who grinds it out as they grow their savings will find that they will get added ahead in the long run, by living in this way. Yet those who pick to go into debt unnecessarily find themselves in a pattern of continual borrowing to keep them in a favorable lifestyle, without ever paying off the old debt. This is a choice and one, which continues to haunt the average American. In fact they get to the point that they believe that they deserve these things plainly for existing, regardless of their level of productivity.
Consumer
Some say that the world of finance revolves around debt and usury. Yet we must understand that banking is a business. If you will be frugal with your money and respect it, limit your outflows and save, then you can lend money to others and make money on your investment. Some believe that banks cheat consumers and fee high rates violating usury laws, yet it is their money and no one is holding a gun to your head telling you to accumulate more debt? There are many who write articles on the exploitation of Hispanic and African or Black Americans and how they are cheated with higher interest rates. Yet, since when does anything need a new no expense, no choice spared 4-Wheel Drive V-8 Suv for driving around a city, what is wrong with a Dodge Neon or a used car out of the classified section?
We have seen the government go after Usury banking charges and file cases as a knee jerk reaction to those who complain. African Americans and Hispanic Americans have in fact been expensed higher interest rates for such things as; cars, homes and prestige cards. The lower end finance game, with pre-paid payroll loans secured by pink slips, hock shops and check cashing stores have been issues as well. Yet if we look at what people spend money on, we see the Hurricane Katrina refugees with ,000 debit cards, spend money on expensive new shoes, nudie bar lap dances and alcohol. That is not exactly respecting the money given to them or helping themselves put their lives back together is it? This attitude and human innate tendency seems to be more of the qoute then the usury debate or the exploitation of such folks, after all it is a choice.
We are all aware of the Ftc cases and Nyc Attorney general Elliot Spitzer cases on Hispanic and Black Lending practices on automobiles. Any way when researching this myself there is someone else side of this issue and one should be aware of the Nada North American Dealership connection for automobile enterprise and their defense of their dealership members. You see the have to holder those loans of those with questionable prestige and sell them and genuinely those who make poor choices will screw up their credit. When discussing things with bankers and their justifications of loan to loss ratios.
Although one who studies demographics and costs in assorted areas of our nation, we also see both sides of this issue. We might also compare the prices in Grocery stores in low income areas to the higher income areas where the furnish is better and yet the price; they are lower? Go figure, pretty hard to deny this stuff; so we see the points of these complaints and the distrust from those poorer communities. genuinely since the poorer folks live in depressed real estate areas which are ordinarily closer to railroad tracks and commercial distribution, the cost to get the goods to market rather than all the way into the suburbs ought to be much cheaper and so the costs should be less right? Sure they should, but they are not.
Although such inescapable issues do exist bankers do have an obligation to limit their risk and lend with a level head. Banking is a enterprise and when man does not pay back those loans or makes late payments, there are costs to the banks and such fall-out rates do sway the car dealership or prestige card enterprise and their standing with their money sources. Bankers say they are risk adverse and although one could argue it is not their money or that they will loan billions to Mexico or large real estate projects at prime plus .5% and yet sock it to the local 50-year in community, hardware store or contractor; one must understand that the bank is in enterprise and they are allowed to pick to whom they lend. Now those who wish to loan to airlines right now? Well you know, I would have to ask about the Iq levels? No government should dictate to whom a bank lends, who an assurance enterprise insures or who cashes whose payroll checks.
In the enterprise world we realize and it has been said that; "Even equity stake is form of debt as investors expect to seek returns. Nothing wrong with that, call a spade a spade. You can't corollary without risk."
The real qoute is that the average man has two point two kids, white picket fence, college degree, mini van and 1.5 times every year income in short term debt, prestige cards mostly. Paying 18% the wrong way; they are stuck working and that is where they have economically enslaved themselves. This is 82.3% of America? So chances are if you are reading this record you doing fine by that standard.
Many Americans realize this is where they are and like the commercial says; "I am up to my eyeballs in debt somebody help me!" Many who we consider well off admit that they are; "floundering in debt" and possibly that is an ironic dichotomy genuinely as they may be a respected administrative in fee of a large company's success and even administrate controls to prevent wastefulness, yet in their personal life have issues with money and solvency.
Many do not wish to take accountability for their actions, remain in denial and thus say; well, consider this, that the cost of living, has been raised and all the bureaucracy causes all to cost more, but not up to the breaking point, just adequate to keep you working your butt off for maximum efficiency? Where as in the economic enslavement of the American Rat Race, they do have a point. I would like to point out that they also have a choice. Debt is a choice, you made that choice and if you want that to change you have to make someone else choice, to admit you are one of the 200 million Americans with debt that is out of control. What are you going to do about it? Complain or make a change? Think on this.
American consumer Debt Issues Consumer