Everything in America went wrong when the average citizen got easy financing.
The idea that the price of what was bought was not “how much it cost?” it was “how much per month are the payments?”
Worse yet, the price bought with financing was always much more than the cash price....but today’s society says they can’t save money up to buy things....but can pay monthly payments to the loan company.
“Just can’t wait” is the American way of life today. When you save cash for a future purchase you might have to drive that old car a few more years until you have the cash to buy a new one, but at least when it is bought your balance sheet is unaffected.
The only exception to the rule is home financing. However, the mortgage payment should only be factored in by the earnings of the “main breadwinner” and not both Ma and Pa.
Now, during this day and age, when either Ma or Pa lose their jobs financial disaster strikes.
We can also think of the Republicans and Democrats as Ma and Pa too. Financial disaster is one of the best products produced by Congress.
Yup.
I've known people who haven't the slightest idea how much the interest is on their mortgage...and, don't care.