How long can our debt levels keep growing much, much faster than the overall economy?
We haven’t had a year of 3 percent growth for the U.S. economy since the middle of the Bush administration, but we keep borrowing money as if there is no tomorrow. Much of the focus has been on the exploding debt of the federal government, and that is definitely something I plan to address once I get to Washington. But on an individual level, U.S. consumers have been extremely irresponsible as well. In fact, one new survey has found that more than 80 percent of all American adults are currently in debt…
It’s no secret that America is a nation that runs on debt, but it may surprise you to learn that the overwhelming majority of U.S. adults owe money in some way, shape, or form. According to new data from Comet, here’s how many Americans have debt at present:
80.9% of Baby Boomers
79.9% of Gen Xers
81.5% of Millennials
For most of us, it starts very early. We were told that going into debt to get a college education would not be a problem because we would be able to pay those loans off with the good jobs we would get after graduation.
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Wow, I had no idea I am one of only 20% that doesn't owe anyone any money, except for current expenses that are paid at the end of every month. No mortgage, no car payments, no store credit cards, and still working and saving some money without going into debt. It's just not that hard to do. But you do have to work, and pay off your loans to get there. Always live BELOW your means has been my policy for the last 50 years. That way you have the money to by the things you need and want, without going into debt. It's really quite simple.
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ReplyDeleteAt your age, there should be no debt.
Otherwise, a person will have debt when he/she dies.
Most people simply don't make enough to provide for themselves at the standard of living in which they grew up.
After all, that standard is what we know - what we experienced.
The economy is managed now by the Federal Reserve Bank.
There is no free market.
The BANKS want all of us to be in debt to them of course, and paying them interest.
This is their business model.
So they create enough inflation so that none of us can maintain our standard of living.
Most of us make up the difference with debt.
Just that simple.
They engineered this situation and benefit from it.
It is very difficult to live within one's means, unless a person's standards for living are very low.
Most of us want to maintain the standard of living we have enjoyed so far in life.
Thank you
I intentionally owe to contribute to my credit score.
ReplyDeleteThe banks definitely want us to be in debt because they make money from it.
ReplyDeleteThey constantly offer credit cards even to young people in college who have no jobs.
So it is obvious that they want us in debt.
But how do they make the inflation?
The companies selling stuff make the prices go up.
Not the banks.
3:42 Sounds like a pretty boring 50 years. What countries have you been to? How many states?
ReplyDeleteIt is hard for young workers to make ends meet if they are not still living at home. However, it can be done. You just can't have it all NOW.
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ReplyDeleteRon Paul taught us that the Fed inflates the CURRENCY.
Inflation is what happens to the currency supply.
Prices follow the currency.
Too much money chasing limited products = inflated prices for the products.
Very interesting.
Read Ron Paul, Paul Craig Roberts, so on.
3:42 Sounds like a pretty boring 50 years. What countries have you been to? How many states?
ReplyDeleteFebruary 21, 2018 at 7:01 PM:
Only because you ask. I've driven coast to coast several times, and all the states I've seen and been to are too many to list. Also been to Hawaii several times, all without incurring any debt. I've also traveled to Germany and attended two October Fests in Munich, skied in the Austrian Alps, partied in Paris, vacationed in Barcelona, hiked in Lichtenstein, and dined and enjoyed the wine in Switzerland. I've spent the night in a European castle and a 1000 year old farmhouse. Again, without going a dime in debt. If that seems boring to you, your sense of excitement must be dead. None of this is made up. And doing it all over again is on my bucket list. I would venture to say that your travels haven't been near as extensive, and by your comment, all your travels have been on borrowed money. Have you ever calculated how much money YOU have spent on interest charges in your lifetime? Probably could have taken an extra vacation or two, if you lived within your means.
Everyone seems to have excuses (not reasons) for not living within their means....
ReplyDeleteI intentionally owe to contribute to my credit score.
ReplyDeleteFebruary 21, 2018 at 6:29 PM:
Now that right there is some really stupid logic. You intentionally borrow money, to enhance your ability to borrow even more money. Where does that get you? Just another day older and deeper in debt. Of course lenders LOVE people like you, as long as you keep making payments, with interest, for things that would be much less expensive if you paid with cash, or with already obtained financial resources. Some naive people, like yourself, think being in debt is a good thing. It only makes you, and your assets (if you have any) beholding to the lenders. I actually know people that say having unused lines of credit is like wasting money that can be spent. How convoluted is that? Those people never get out of debt, and end up upside down (owe more than its worth, because of small payments with big interest) on all their major purchases. A lot of them end up bankrupt, with no way to pay off their debts. Easy credit is the bane of people that have no control over their spending habits.