Turning to US economic news, a frightening article from the New York post describes how US credit-card debt has reached the highest point in a decade. Last time this happened, consumers turned to borrowing equity in their houses to pay-down debt or to accumulate more debt, which inflated home values and contributed to the housing bubble and crash during the last five years. This time, with little-to-no home equity to borrow against, americans continue to take on more debt with no way to get rid of it.
Total consumer debt increased by 9.3% for December 2011 alone, which is a staggering amount:
In December, the total consumer debt, which is the combination of non-revolving and revolving debt, rose by some 9.3 percent to $2.498 trillion, according to the latest Federal Reserve Board numbers.
Do others think it is still a big problem? Yes:
“It’s still a big problem. Some people want to live life to the fullest even though they are using their cards too much,” Altfest explains.
Especially in tough economic times, there is no excuse for living life to the fullest if you cannot pay for it. And there is definitely something to be said that a large part of living life to the fullest involves not looking for happiness through spending money on stuff that is just going to be thrown away to get replaced with more stuff. This book is a good place to start.
Via New York Post
US consumer credit, in the garbage (Franklin, TN 2012)