Jun
10
Why do Americans abuse credit cards and home loans? Why do most people in this country live out of their means?
Filed Under Credit
While I don’t owe any debt and pay off my credit card bill in full why are banks so stupid to give credit cards and home loans to just about anybody?
Part of the reason so many banks have gone under is because they were stupid to loan money to people who didn’t desrve the loans.
If someone wants to buy a flat pannel TV for $2,000 why can’t people save money in an envelope for a year or 2 until they have the cash to actually buy the $2000 TV? Most people won’t end up paying the bank for the money they borrowed to buy a TV?
Why do people who have a household income of $40,000 per year buy houses for $600,000 on loans. Shouldn’t the bank have realized that a couple with a houshold income of $40,000 can’t afford to make the payments on a $600,000 home.
Why should we the taxpayers bail out these banks when they made bad loan decisions?
People need to realize to live withing their means.
There was an article about Apple computer giving a loan to a person on welfare to buy a $2,500 laptop? Why does someone on welfare need a $2,500 computer?
Enough is enough! Banks need to get strict again on who they loan money to.
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2 Responses to “Why do Americans abuse credit cards and home loans? Why do most people in this country live out of their means?”
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It’s the American Way, now go back to where ever you came from
Our society is one that we want instant satisfaction and instant gratification. This is really sad. We need to learn from our past mistakes and do like you suggested and if a person wants something, then save up for it and pay cash for it. The interest on the credit cards are really bad and I personally am trying to pay off my credit cards and adopt the philosophy of If I can’t afford to pay cash for the item , then I really don’t need it.
People do not REALIZE THE DIFFERENCE BETWEEN A WANT AND A NEED and tend to think that they are one in the same.
Another thing is that we Americans have bitten our selves because credit can make you or break you, so you need to have some credit card, but only use them for an absolute emergency and then pay off the balance in full in month.
I like your question – everything you said is so true.