People believe they must have a microwave oven, two cars, a VCR, multiple TV's, $2,000.00 vacuum cleaners (yes, it's true), computers, etc., to keep up with the Joneses. So they charge it, instead of saving for it, and get in over their heads. Allowing the purchase of groceries on credit did not help matters either. Many consumers are foolish and easily led (thus the success of advertising).
The credit card companies are in the business of giving people credit. They (the credit card companies, et al) created the credit reporting agencies so they could keep track of people's credit histories, and determine credit-worthiness. Sometime in the late seventies, early eighties, it appears that the credit-worthy were not bringing in enough revenue and an effort was made to get more money by offering more credit to people who were already over-extended (the un-credit-worthy). I believe usury laws were also loosened sometime around then, allowing creditors to charge higher interest rates (although that may be a state thing). And so on and so on. I've been in the bankruptcy world for nigh on fifteen years. It's gone from medical and tax debt to tax and credit card debt. It started in the eighties when the economy was "so good." It was all based on credit. No actual money changed hands.
Man, I can go on and on.
Please go on!
LET'S PUT THE AMOUNT OF THE US NATIONAL DEBT INTO PERSPECTIVE
$ 7,937,463,000,000.00
Seven trillion, nine hundred and thirty seven billion, four hundred and sixty three million dollars
If you had gone into business on the day Jesus was born, and your business lost a million dollars a day, day in and day out, 365 days a year, it would have taken you until October 2737 to lose a trillion dollars.
The U.S. Congress has done seven times this damage to their constituents in a little over eighteen years!
This war is very expensive. The NATIONAL DEBT is growing to 9 Trillion dollars and we still have tax cuts in the works.
Now the people are going to pay 28% and they thought tax cuts were saving them money. I'm saving up to buy a houses in coming soon to be foreclosure 2006-2007 years.
Get your house in order and pay off all credit cards.
Didn't credit card debt used to be deductible for federal taxes?