Why are most people broke? US perspective

[happyguy]

On 28/09/2018 at 22:39, Maximus Skepticus said:

The root problem is WHY we’re able to consume to excess in the first place… and the answer to that is credit. It’s very easy to become broke when the money you spend isn’t yours to begin with… because any money you do come into, you’ll automatically owe to someone.

I can buy heroin easily but I choose not to.  People who get into huge debt make a choice to do so 

On 28/09/2018 at 22:39, Maximus Skepticus said:

Think about how absolutely sick that is… even if you HAVE real money, there are many cases in which you cannot USE it!

Money laundering regulations mean that it is illegal for companies to take large cash payments to avoid criminals being able to launder money. 

On 28/09/2018 at 23:44, dougless said:

think much of this could apply to the UK.  I seem to recall that over 80% of private car purchase is via some form of credit or lease arrangement.

This is true yes.  My own car purchase price is about 25k - I would never ever pay 25k on a car but I will pay £200 a month for 3 years then hand it back and get a new one.  I do not want to own a car. 

On 29/09/2018 at 05:40, Odakyu-sen said:

It's nicer being debt free (you sleep better at night). 

Agreed I cannot imagine the stress of being in huge debt

[bushblairandbrown]

3 hours ago, happyguy said:

This is true yes.  My own car purchase price is about 25k - I would never ever pay 25k on a car but I will pay £200 a month for 3 years then hand it back and get a new one.  I do not want to own a car.

...

Agreed I cannot imagine the stress of being in huge debt

Sounds to me like when you get your car you have a minimum obligation of £7200, which sounds like a pretty sizeable debt on a car to me. And frankly once you get the extra charges for excess miles and any damage to the vehicle then you probably owe a chunk more.

You are driving round in 25k worth of car you haven't paid for. I think you certainly can imagine the stress of being in huge debt. 

[Henrik]

With most PCP deals you can hand the car back after half the payments I think (I'm not sure if it's PCP or the other Pxx - basically the one with a huge bubble at the end).

In my own experience, sadly expenditures grow in line with income, at least once kids arrive.

[winkie]

On 29/09/2018 at 19:37, GregBowman said:

A lovely video !!

Thought you would like that.....the truth is that far too many are wasting far too much time trying to impress others with money they do not have or has yet to be earned.....but it is not only with money, it is with how important they think they are, how much influence they have over others, how much their individual actions can affect others.....how much control to manipulate.