Why Americans are in Debt

Many consumers do not understand that with credit card fees come high stipulations and that is the ever increasing interest rates from using their available credit. These interest rates can be increased by double or triple at the whim of the credit card company. These are usually hidden fees in the fact that it is in the very, very small print on credit card contracts.

Spending $10,000 this year for items or services on your credit will cost you $40,000 by this time next year. The reason that banks and credit card companies can do this is by stating that they are passing along some of the risks that debt may go bad. According to USA Today articles this risk comes at the risk of the consumer’s pocketbook.

Bankruptcy; it used to be practically a dirty word to working people. It has been noted in history that 40 years ago people were more thrifty and frugal than they are known to be today. Very few Americans were offered credit cards or had them at that time. If they did have one they used it very little, considering it mostly for emergencies.

There is no longer the same stigma associated with bankruptcy as years ago, it is now considered a smart option. It doesn’t even reflect on you credit report for the same long 7 years that it once did. Many folks that file bankruptcy are even offered new credit cards before the ink is even dry on the bankruptcy papers they are filing.

American consumers are so deeply in debt that 95% of all bankruptcies filed in the U.S. last year was due to consumer debt. The American consumer that repeatedly does this charging has no concept of personal responsibility. They feel if they were extended a huge line of credit, they must have deserved it all. But there is no such thing as free money; it comes with interest that spans years and can double or even triple whenever the credit card company feels like adding it.

Consumerists that study American debt agree that “Americans are more interested in the now than in yesterday or tomorrow.” Some of these consumerists state in articles all across the Internet on such sites as spectator.com these thoughts. They are seeking instant gratification so they will charge a plasma TV for $1500.00 or even pay for gas and their weekly groceries with the plastic. They will have to do the same thing next week, not even realizing that what they buy this week they will still be paying for next year. But that is the convenience of charging.