Why are so many folks in debt ?

Hi

I personally do not spend more money than I have
I am not wealthy, but will not borrow, although I could easily

I am bemused that some borrow more than they can re-pay

What, apart from easy access via TV commercials giving people cash, is going on with our personal finances ?

Bob

Lack of common sense, and lack of personal responibility. Trying to keep up with the Jones's. I have no sympathy with them.

You must be one of the lucky one's then. I don't want to borrow money but what happens when the washing machine or fridge freezer breaks down or something needs replacing on the car urgently to get to work? Sometimes you have to borrow money to survive. Maybe you are one of these people who don't work and have financial support from the family. If not, you must have a bloody good paid job.

You have already answered your question.

Why does a dog lick his dogly parts?

Because he can.

why are so many people in debt?

because they can borrow money---in SO many ways...hock your house, borrow money against your dwelling. get this credit card, get that credit card, get POINTS! fly frequently, get a loan against your next paycheck...ok, I am done...

BOB some decent folks (just like you want us to think you are) have emergencies that happen!
maybe they have a relative that has no insurance that is faced with extremely high medical bills....maybe they live within their means and there is a fire in the apartment where they live and they have no insurance for that.

Maybe someone rear ends them and they must rent a car until the insurance settlement comes thru
maybe they were laid off
who knows
but it is sad how amused that you are at the difficulties that other's face

Next door has one ! Heck we just gota run out & get a much bigger, brighter coloured, does everything & has bells on.

Tis pretty much whats wrong all over.

What happened to being content & living within your means

the cost of living has gone up .daaaaaaaaa!

Bc not all of us are fortunate to have well paying jobs. Alot of us make well under the national poverty level. Don't judge people without knowing their story! Not everyone is in debt because of stupidy!
Do not judge someone before you have walked a mile in their shoes.

They spend more money than they earn. Simple

The ethos amongst many people these days seems to be "you might die tomorrow, so enjoy yourself today".
I always tell them that I don't intend dying for quite some time. As life expectancy is about 80, I haven't even reached half way. Granted, I may go before then, but there's not a lot I can do about that.
People also seem to want to have the latest versions of everything. Does buying all the new gadgets actually make them happy? Seemingly not,as they keep on spending.
I think it has also become a lot easier for people to borrow money: you are actually encouraged to do so. I personally send all the forms from companies wanting to sign me up to their loans and credit cards, that drop through my letterbox, straight back to them. After doing it half a dozen times, the message gets through, and they don't bother any more.
A lack of personal responsibility is to blame. And the "Celebrity Culture" that we live in, where everyone wants to emulate their "heroes". Sadly, these people can afford the lavish lifestyles. Most people can't.
The economy can't keep this up forever. I foresee a lot of pain and suffering in the not too distant future.

I am the same as you. I don't spend what I don't have. I have never had a credit card or borrowed any money. I was the considered the 'naughty one' in my family, my sister is many Â£1000's in debt and she was considered the 'sensible' one! Go figure!

humsn nature to spend more than you earn. be greatful you are able to buck this natural tendancy.

A lot of people have never been taught about money and lack financial literacy. They think that if they are offered a loan or another credit card, they should accept it and spend, spend, spend without considering the consequences.

If you have ever watched Spendaholics you would see exactly how some people get themselves into debt.

easy, we live in a society that is bombarded with a buy now, worry later mentality. Car dealerships, clothing, plastic surgery, the housing market. It's all about keeping up with the Jones' now and not worrying about things like retirement or financial security....It's sad, but that's the way it is....

Before credit people saved for what they wanted now they want it and pay later. Credit is pushed all of the time. Banks and lenders have not in the past looked hard enough at someones ability to pay the debt back. Lack of education, most could not work out exactly how much paying a credit card back , schools should be teaching things like this . Some get into trouble through no fault of their own, illnes redundancy, unexpected misfortune. So many reasons.
I now live without credit and it is so uplifting to save and buy something and not have those bills to face.
Credit lenders have got to look long and hard at who they lend to and their ability to pay the debt back, though in their defense they are now doing that. Unfortunately that does not help those with their homes at risk and debts which could take years and years to pay back.

Because it is too easy these days to get credit. Every day I get letters asking me if I want a credit card. I had one and I have now paid it off and will never ever get another one. I read today that there was a woman that had so many credit cards and was about 102,000 in debt and she will be a pensioner when she finishes paying for it !

That is a great question!

Poor parenting and schoioling on finances?

My parents set horrible examples, but I went against their examples instead of following them. Not sure why so many can't do simple math and spend less than they earn.

sometimes people are not good at planning their money it is a common fault. When you have a control over your finances it is tempting to look down on these people. I am sure these people are not prefect in all areas - Jesus said - if you are angry with people in your heart you are a murderer, as long as we have a good attitude to the weakness of humanity - this type of question may actually show the questioner is at fault?

Today`s mentality seems to be, we`ve got to have the latest gadget/tv/music system etc regardless of how much it costs and if you get a better one than me, I`ll just go and get a better one than you. My friend, has 3 kids under 4, just got a massive TV. With 2 kids running around tv is likley to get knocked over. Looks great - massive tv, small room !!

Yes I agree with you ,I pay as I go along and started off with a house that had only a cooker and a bed it was fun making ends met and gradually getting the furniture it just seems now that the young seem to think they have to have it all straight away,a shame they miss out I think on building up their home and finances and just end up in debt.

Cos everything goes up and wages dont go up as often as like ciggerettes/petrol/alcohol general inflation etc etc and people can't afford to live anymore thus getting into debt.

My electric bill went by half in a month somehow petrol seems to go up every week and the more you work the more you get taxed it's robbery.

people in spain earning a lesser wage live alot more comfty than brits. We simply are not earning enough (the majority of people) to cope with tax increases on everything and generel living anymore.

Cos nobody is willing to save anymore, for the things they want.

I got into big debt just trying to keep up with paying bills & bringing up my children.

its just too easy to get into debt. i personally dont own any credit/store cards or have anything on credit, but there are times when i have spotted something and think 'i wish i had a credit card'!

its not even the matter of people borrowing more then they can afford to pay back. the real problem is the amount of interest that is charged. my friend has a large credit card bill (she had to repair leak damage in her house), she pays around 300 a month which is over the minimum payment and only around Â£23 of that is coming off her bill and the rest is interest and i think that is disgusting.

Well Bob~ after reading everyones answers here, truly what you have is this ...."all the answers laid forth here are RIGHT'...it's a little bit of this....little bit of that....
Everyone has a story or an opinion of what happens. Truth is, different "things" happen in the lives of everyone. We are not all the same, nor are our circumstances.
I can give you my version, but truth is, we ALL have one.....and they are different but the outcome is the SAME~
DEBT.
When I got my first CC, I was careful not to put anything on it that I KNEW I would not be able to pay off....that was easy enough...then, we purchased a washer and dryer for our first home...we had some in savings, but chose not to use it, so we used our CC, fine, paid it off in 3 months.....scared me to death, because that was the first time I had never paid it off monthly.....but that went fine too....didn't mind that it cost me a little bit more, (interest), it wasn't terrible.....THEN, we had kids....still saving some money (but not enough, looking back...) but it is hard to save in this era .... then things start happening and we relied on CC to help us out..that was okay too...because we still had a grip on it....paid them off....
THEN...................the ball gets a rollin'................and husband has a career change......has to quit working during the day, works at night to help...BUT we RELIED on CC to get us through~ figuring when he gets the "better job" we'll catch up......NEVER...always two steps forward 3 steps back.....found ourselves in a HEAP of CC debt.....then you finangle and scoot around on how to figure out getting lower interests on those cards, and I did...but then........CC companies know how to screw too.......they SAT on my PAYMENT of 1200.00 so that my interest went from 2.99% to 29% .....that's right...never been late with this one before NEVER, I mailed it 2 weeks early...they said they got it ONE DAY AFTER THE DUE DATE.....BS!!!!!!!!!!
That was the day of rude awakening for me......
We himmed and hawed and found us a bankruptcy lawyer, filed a chapter 13 a year ago and are in a 100% payback. Which I have NO problem for....I am responsible for getting myself there....no excuses.....but it's not the worst thing that could happen....we have so far paid it a year and have 4 yrs to go....BOTTOM LINE: I've learned a very very important lesson....never ever let that CC ball get to rolling, because I NEVER thought I would end up at the place I am. I am a responsible adult, yet I made poor choices. It can happen to ANYONE.....responsible or not. SOOOO...I said all of that to say this....People.....go to a bank that gives you a debit VISA/MC that takes the money out of your checking account, it looks and uses like a CC but the money is deducted from your checking account...that way if you don't have it in there..you won't SPEND it either.....I will no longer use a regular CC. Those fricken companies have gotten their last dime from me.....forever!!!! I use CASH and that's the way I intend to live......to hell with banks and loans......I was the stupid one to let this happen, yet, I have learned an invaluable lesson......as Dave Ramsey says...be willing to live like no other, then you can live like no other.......
USE CASH ONLY....who cares what a credit score is...
saving what I am paying a US trustee every month $2345. for five years............I can buy whatever I want with that kind of cash...now I know it can be done, and that's the way I intend to live the rest of my life....never borrowing again, therefore to hell with what's called a "credit score" WHO CARES!!!!!!!
FREEDOM is NOT being IN DEBT!!!!!!! and NOT ALLOWING yourself to GET there!!!!!!
Blessings~
TinaB

Some people count their money before they have it.

I am at a loss to understand. Anytime I need some extra moolah I simply sell off another bit of the estate.

Last month it was the roof rack.

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