America’s Debt Problem – Who is to Blame?

Debt has become a major problem for many Americans. Over two million Americans are expected to file for bankruptcy this year, a million are expected to enroll in a debt consolidation service and the average credit card debt is rapidly increasing. How did the situation become so grim? Is it the fault of consumers, banks, the government, or the economy in general? The case can be made for each. Here is a look at who is to blame for the amount of debt in the United States.

Obviously, consumers have to take some of the blame. Credit card debt exists because people spend outside of their means. The drive for material possessions leads Americans to spend money they don’t have. Consumerism in this country makes saving money difficult for many Americans. A complete change in philosophy is necessary in order for many people to reduce their credit card debt.

Another potential culprit is the banks that issue credit cards. Banks have used aggressive marketing to lure consumers in to signing up for credit cards they don’t really need. Rewards, promotional offers, and free gifts are all designed to get Americans to fill out a credit application. Meanwhile, the banks wait for you to make one mistake. From there, they can hit you with fees or increase your interest rate.

What about the government? We hear a lot in the news about the national debt. But what is the government doing to protect its own citizens from accumulating debt? Banks have been deregulated, and the federal government has made little effort to protect consumers from unethical practices. There is also a limited about of credit education available. In many cases, laws favor the banks instead of the people. That has led to a lot of trouble for consumers in this country.

Of course, the economy as a whole is a major issue. Every year, the cost of living increases. However, salaries have not kept up with this increase. Most companies have limited or eliminated merit increases due to the tough economy. That has made Americans struggle to get by, leading them to survive on credit cards for items like food, gas, and clothing. People are going in to debt for things they need, not necessarily things they want.

In reality, all four are partially to blame. In order to solve the debt crisis, a change in philosophy is essential. There needs to be more laws protecting consumers as well as more education available. There are many challenges due to the tough economy, but change needs to start now.

Apartments For Sale Melbourne- MelbournePropertyInvestment.com.au – apartments for sale, off the plan apartments, new apartments for sale in Melbourne.

Real Estate Melbourne- RealEstateMelb.com.au – find real estate and property for sale in Melbourne

Payroll company – Moorepay are a leading payroll company and provide fantastic hr payroll solutions and payroll services.

Hr consultancy – NorthgateArinso are leading specialists in employment law advice, health and safety consultants, hr consultancy and tribunal representation.