Americans Collectively Owe Almost $1 trillion in Credit Card Debt.

Here is an article which shows even more evidence that the U.S. is headed toward a dramatic collapse. I knew Americans owed a lot in credit card debt, but I didn't realize how much. Check out this article:http://moneynews.newsmax.com/money/archives/st/2007/11/6/155431.cfm?s=al&promo_code=3C82-1

 

Ok USA is in a bad way ... that's for sure !!! But are there any cures ???

Do you see any solution for the future ??? it's really hard to see such nation falling that way

 

We learned from the best at accumulating debt. Our own US Government!

 

This is the best quote of the month right here. I couldn't have said it better myself.

You know, it is truly mind boggling when you think about it. Americans are supposedly the "richest" people in the world. Man, what an illusion that is. We only "look" rich, and if something doesn't change soon, the chickens will come home to roost.

Well, the first step is to vote for and support this man for the 2008 presidential election:http://en.wikipedia.org/wiki/Ron_Paul

Ron Paul is an expert in the field of Austrian Economics, and is a true follower of the Constitution. He understands what needs to be done to fix this mess. Other than voting for Ron Paul, and maybe donating some money to his campaign, there are a number of other things you can do:

1. Get out Debt. Pay of all your credit cards, no matter what it takes.

2. Stay out of debt.

3. Cut up your credit cards so you don't have a temptation to go in debt.

4. Save your money, so you won't need to borrow money, putting yourself in debt.

5. By Gold and Silver, so you protect your savings during a potential economic collapse. I would convert 10 to 20% into Gold and Silver.

 

I owe zero dollars in credit cards. I have a Visa check card tied to my checking account and a Paypal Master(Massah!)card tied to my balance there.

My Chevy Silverado is paid for, my wife's new Saturn Vue is 1/3rd paid for, and we just bought a new home.

Other than those two payments, and utilities, we owe no one anything and it's a wonderful feeling

 

I also hate debts but when it comes to studies , I guess I will not make resist anymore

 

I believe some make things out to be worse than they are. Alarmists.

When I was growing up, in the 60s and 70s, my parents had credit cards, they bought a home with a mortgage, when they went to the car lot to get a new car, they financed it. Just like millions of Americans did back then and today.

People are responsible for their personal decisions. Lending institutions are responsible for who they give loans to. When they lapse in judgement, like they did with subprime mortgages over the past few years, it eventually catches up with them.

Two points:

Lenders are responsible for whom they make loans to or give lines of credit to.

People are responsible for what they do with those loans and lines of credit.

 

You are very correct about this.

The difference between then and now is the level of debt and the rates of credit. <edit> Along with changing views on what's ok, etc.

Although credit rates were higher for mortgage and car loans, they weren't nearly what many people pay for their credit cards now. Also, school loans were were cheap, if they existed at all, for people. In the old days, families had one, and usually no, credit card. They also only had one car, not two or three per family. People didn't buy as many needless things, such as a tv for every room, etc.

It is now almost expected to take out huge loans and have multiple credit cards. People should be putting money aside for a rainy day and their possible retirement. Instead, they live for now and competing with the Jones'.

The government is not a good example. We should not allow such a huge trade deficit and we should pay off our debt to other countries, especially China. This will come back to haunt us in a big way, as it is now. Look at the value of the dollar, for example.

 

The average American owes like $12,000. Also, the article said that bankruptcies are increasing, and people are defaulting on their loans. That doesn't sound very good to me.

 

Debt is alarming. I worked in the commercial real estate industry for years. One phrase I remember is that "debt never sleeps".

It is wise for consumers to deal with it responsably and for govts to similarly deal with it responsably.

The sub prime mortgage problem might have a big negative impact on the economy. It might not. I worked through the last great credit crunch in the US in the late 1980's and early 1990's. It severely restricted growth and the economy. It had the same characteristics of overly wide lending for ultimately too many bad loans.

Individuals need to manage their credit with income. Its scary individually when it gets out of hand, and it would be scary nationally if it gets out of hand.

 

I hope you're right, because if the dollar keeps falling, things are going to get really ugly........

 

We do have to be careful with statistics.

Many of the $260 million odd people in the US are below the age of 18, so should not be included. Also, the level of defaulting on loans is part of the problem. The loss gets passed on to others one way or another.

 

I was brought up to believe that unnecessary debt was something to be embarrassed about, my grandparents would speak in hushed tones about the credit problems of some of my relatives

Since I moved to florida, I have seen so many people stretched so far in debt between, houses, cars (or more likely giant trucks), boats etc

I was reading that like the majority of sub-prime loans will be adjusting in the next couple years, and we haven't even really begun to see what problems it will cause

I have also read people are starting to default on their credit card debt, imagine if the whole country just said "fuck it" and just stopped paying their credit cards.

 

It would be a huge problem.

However, I doubt that this would happen. Even still, the sheer number of people now defaulting on various loans, especially home mortgages, is a huge burden. Somebody is losing in this situation and it's not entirely the person defaulting. The banks, the government, and ultimately, the population as a whole suffers.

 

well hopefully none of those BS bail out plans go through that the democrats have be suggesting, the lenders and people defaulting should not be given any tax money

 

I agree.

There's no easy answer, but I think the foolish, stupid people need to learn a tough lesson.

I'd love to see all of those politicians, past and present, that started us on this trail of debt to other countries be held accountable. Instead of voting themselves raises and other perks they should be lumped in with all the foolish, stupid people (mentioned above) and suffer some hefty consequences.

 

Thrift used to be a national virtue.

 

In the UK, I've heard people are being thrown in jail for defaulting on their loans and refusing to pay, so I wouldn't be too surprised if the same thing happened here. With the power that lenders have over the states and federal government, I could see such a law being passed if millions of people started defaulting on their loans and not bothering to pay it back. It is a good reason to save your money and stay out of debt.

This is very true. Prior to the Great Depression and the Roaring 20s which preceded it, Americans were very conservative. Today you get made fun in school by the other kids of you don't wear the latest designer fashions.

This country has come a long way, a long way away from being the strongest and most prosperous nation to one that only looks prosperous, but is actually is poor, and this reality is becoming more and more apparent every day.

Another reasons is because we live in a culture of "bling." You're considered to be rich if you make a lot of money, and spend a lot of money. On tv, all we hear about is how much a celebrity paid for their house, car, all that BS.

Americans get brainwashed into thinking they have to keep up with the joneses, and just end up in debt and poor as hell.

Yep, and this is why John D was America's first billionaire. He understood that bling and showing off to the world generally means you're not half as wealthy as you make out to be.

 

I think this book would be good for a lot of people here-

http://www.amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116



Also-
http://www.amazon.com/Richest-Man-Babylon-George-Clason/dp/0451205367