Debt may not be so much a problem in the future

A group of us were discussing on the recession, how it may be a double dip, and the woes of debt for the common American man.

Though, we came to a general conclusion that debt for the next generation (I'm 22, so I'm still a kid in the world) will not be a major problem as it was for my parents generation, and the reason why I believe is this.

Baby boomers, children born after WWII, grew up in a time where one parent was only needed to have a job, and women were able to stay home and be housewives. Multiple cars, big house, etc.

When they went out and had their own families, they tried to do the same pattern, with a big house, multiple new cars, going out and shopping, but as with the late 2000s recession, it's taken a huge toll on people, with them losing jobs, having to sell their cars and possessions to keep up the bills, but maybe most importantly:

DEBT.

People are in debt... So now, people are turning to other ways to save money. Smaller houses, smaller vacations, lesser cars, not using credit cards for big purchases.

I think it may be a trend to see as this generations kids and young adults, when they become parents, will continue this line of thinking, seeing as what happened here, with this recession.

And this may be a trend out of necessity. Debt is killing people, especially credit card debt. Piling mounts of money you'll never be able to pay off. College debt is just as a big a problem, though college is very necessary in this day of age.

[edit on 30/8/10 by Mak Manto]

reply to post by Mak Manto


Yes debt will probably be less of an issue for future generations. There was a lesson here that anything you cannot buy without credit is not meant to be bought. My wife and I have decided we will never buy anything on credit, even auto loans. The only thing we will use credit cards for is traveling or internet purchases. Otherwise credit is gone from our lives. I think most Americans have learned this lesson. Even people that have paid their bills. They are now finding out their credit percentages are being driven up because of the default rate. I say credit in limited use could be a good thing for a company, or an emergency situation. However, today's consumer driven credit market is a lesson I think American's will not repeat.

I thought it was going to be a post saying there'd be no more debt because we'll all be extinct anyway!

There's always that possibility!

Edit to remove smiley face...it's not so funny afterall! Morbid humor,...I apologize!

[edit on 30-8-2010 by On the Edge]

You are forgetting one big debt here my young padajaun.

You are talking personal debt, what about that HUGE government debt?

Who do you think is going to pay that one off? Most people that I know, have attempted to stay out of personal debt their whole lives. My area and the people I hang with (so to speak) know the problem with debt.

It is always better to save and create assets from your capital.

Problem is, where is the capital and opportunities going to come from. Historically the US has been a country with a low 4-5% unemployment rate. Europe and other countries have always had the higher unemployment rates. The baby boomers are entering retirement age, hate to shock you, but who do you think is going to pay for their SS, Medicare, Medicaid?

Those systems are ponzei schemes. Those retired and getting the benefit are paid by those in the system yet. Just as one example, the SS system last year started paying out more than it took in. Last I heard, the SS system had about $2 trillion in IOU assets. Those assets were stolen over the years by every administration. There is NO SS trust fund. The lie about it not going broke for 30 years is exactly that, a lie.

When you have more money going out of a system than coming in, the savings have been stolen, what do you think is going to happen?

Expect tax increases for EVERYONE in the near future. This government has NEVER seen a dollar they did not want to spend. Heck, they never saw $14 trillion in credit they did not want to spend.

Now, since I mentioned the Three largest debt we have, now to bring up another.

Federal and state employee pensions, benefit packages and other sundries.

Ooooh, big problem coming there. You have heard that this recession/depression has pretty much wiped out most of the private people's IRA's and pensions right?

What do you think happened to the government employee pensions?

Problem is, they have you and I to pay for that. Look into the government debt and tell me you actually think you are not going to get stuck with it?

I won't, I no longer consent to their governance. Done with their idiocy.

Sorry if I bummed you out.

reply to post by saltheart foamfollower

Well, I'm referring to debt you can control. Nothing our children and grandchildren can do to stop the national debt, but personal debt is able to be knocked off completely by sensible living.

Credit card debt is entirely horrible. People get themselves stuck in these things for years, draining their selves of their money, trying to get out unsuccessfully.

reply to post by Mak Manto


What he is saying though is that once the government is done pillaging,you won't have anything left anyway..but,yeah,not having any bills of your own will be nice,too.

You'll probably just get to live in some government housing and get food rations and some prescribed excercise to keep you functioning as a machine,....

Come to think of it,I prefer extinction!

The root cause of the debt problem is: IGNORANCE, GREED and IMPATIENCE

People nowadays feel that they are entitled to the best of everything, even if the price transcends their financial ability to pay for it. They see someone on the street with the latest/coolest cell phone, and immediately rush out and buy one to look cool. While they're walking through Best Buy or other electronics store they spot an awesome large screen TV, and put it on credit. When they realize that TV won't fit in their 5 year old car, they rush out and start looking for a new car that it will fit in. They then drive home, passing homes priced beyond their reach, but call their real estate agent to figure out how to buy it and out do their family and friends. Surviving one or two of these binges may be survivable, but in the current economic times it's simply beyond the financial means of most people.

If people would realistically assess their finances before buying everything they wanted, their financial problems wouldn't be nearly as bad.