The U.S. “Debt Mountain” is the culprit
Miranda Marquit (Yielding Wealth) says that the real problem with our economy is consumer debt. Darn right! From the biggest investment banks down to “mom and pop” households, we are buried in a mountain of debt.
Don’t believe me? How about these facts?
MSNMoney says, (and I quote):
- About 43% of American families spend more than they earn each year.
- Average households carry some $8,000 in credit card debt.
- Personal bankruptcies have doubled in the past decade.
How can almost HALF of American families spend more than they earn?
Some more scary facts (from Creditcards.com):
- 76 percent of college students (most with no visible means of support) have credit cards. They are accumulating student loan debt in order to pay the minimum on their credit cards. And they drive better cars than I do.
- A Federal Reserve study said that Americans had almost $1 trillion (with a “T) in consumer debt as of mid-2008.
And we wonder why these investment bankers don’t know how to manage their money. We aren’t doing so well ourselves, and we’re teaching our children the same bad habits.
I suppose calling for a moratorium on consumer debt isn’t the answer. But I do know that if we all of us can’t learn to live within our means (and I mean you, too, baby boomers), the “debt mountain” will bury us alive.
Tags: bankruptcies, credit card debt, Federal Reserve, Yielding WealthRelated Stories
POSTED IN: A Boomer Rant, Finance, Jobs
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