Savings and Debt

After reading the "Couple learn the high price of easy credit debt", I am not surprised at all with how much money they owe and how deep they are in debt. I think that this nation is slowly but surely becoming poorer and poorer because the high amount of people that go crazy with credit cards not realizing how much of a burden it is going to be on them later on when they have to pay it all back. People get into debt easily simply because the price of life has definitely gone up in the last few decades and now a days to live comfortably you need to be able to make a comfortable salary which is going to provide for your living costs, your family needs and your food as well as other necessary expenses. Finance charges can be dangerous because the high amount of interest and the high amount of money that can accumulate when time passes by and you don't pay your money can really hurt you in the end and you end up paying them more than the actual money you spend to begin with due to finance charges.

Americans don't save money anymore because the reality of it is that a good amount of Americans are living paycheck to paycheck and with their rent, mortgage, car payments, family expenses and everything else, they have nothing left over to save. The average family makes from 66,000 to 70,000 dollars a year which is not that much when you pay all your necessities so it's really hard to save and as time passes it will get even harder.



An article I found called Low U.S. savings rate could harm nation's competitive Strength talks about the importance of our country saving money to fund more necessary things such as education, research and other things that are essential and beneficial to our nation. With a low saving rate, interest rates are forced to go up and potentially can hurt the nation's people economically. The article also states that the U.S. is ranked among the lowest saving nations out of all of the industrialized nations.