Irresponsible loan practices, high predatory fees, and growing economic instability points towards the start of financial implosion. Credit card debt
has tripled in the past 6 years for Americans that are just trying to get by, 1.8 million people declared bankruptcy in 2004, and the average amount
of credit card debt per consumer is $8,650.
Forget everything you thought you knew about America's debt problems. It's not reckless spenders racking up a record $800 billion in balances on
credit cards that's the problem. The problem is with average Americans just trying to make ends meet, according to a new study.
Why can't you pay it off?
Layoffs, major medical expenses, education costs, and bad transmissions are evidently the things that separate the economically vulnerable from the
fiscally stalwart. When asked to cite what contributed to their current level of debt, respondents cited the following:
* Car repairs (48%)
* Home repairs (38%)
* Major appliance purchase (34%)
* Basic living expenses (33%)
* Illness or necessary medical expense (29%)
* Layoff or loss of a job (25%)
* Tuition or expenses for a child, spouse, partner, or self (21%)
* Money given to family members or used to pay debts of other family members (19%)
* Tuition or other expenses for a child who's high school age or younger (12%)
* None of the above (12%)
* One or more of the above (88%)
When the bankruptcy bill goes into effect on Oct. 17, lenders get yet another hand to play in their favor. The Plastic Safety Net study shows that
even the best-intentioned debt-strapped households -- and most of them are diligent about their finances -- are living in a house of cards.
Please visit the link provided for the complete story.
I have been continually amazed at the Fed and the market's ability to keep the US economy afloat, but it's not a matter of a time if it will
collapse, but when.
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[edit on 13-10-2005 by Regenmacher]
[edit on 10/17/05 by FredT]