Posted on 01/16/2013 8:06:57 AM PST by KeyLargo
Why U.S. might be ‘a nation of deadbeats’ Consumers have been paying down debt, but walking away from more
By Brett Arends
President Obama said on Monday that “we are not a nation of deadbeats,” but instead a people who “pay our bills.”
Really?
A close look at the data reveals a very different story — and one that gets far too little airing in public discourse.
Far from paying our bills, the current generation of Americans — or some of them — have set records for default which probably have no parallel in the history of the human race. During the last five years, U.S. individuals have walked away from a staggering $585 billion in mortgages, credit card debts and other personal loans. That works out at about $6,000 per household.
And if the numbers are to be believed, there is probably a lot more to come.
(Excerpt) Read more at marketwatch.com ...
I have been hunkering down and paying off debt (de-leveraging) for nearly 5 years now. Have managed to eliminate about $500,000 in debt during that time.
Not much left to go, should be completely debt free before Obama leaves office.
Ripe for the taking.
Not to make excuses for deadbeats, but much of this debt owned by individuals falls into 3 categories.
-Consumer Debt on revolving charge accounts (which the banks can jack up to 30-35% interest with cute fees and penalties on a whim, making them virtually impossible to pay down to zero)
-Student Loans that cannot be discharged (though they may be forgiven if one hews closely to the Obama prescription for life)
-Mortgage Debt, much of it in the form of cute interest-only, floating or other “creative” loans.
I think the average Joe out there looks at all that and says “I can never pay it back, no matter what. So why bother?”
Not to mention if you are dealing with business-to-business transactions the level of non-payment and deadbeatery rises to a whole ‘nother level.
Of course we are a nation of deadbeats. Not everyone, but a substantial number of Americans think its OK to walk away from debt. It goes hand in hand with the Welfare State mentality of “gimme gimme gimme and make someone else pay for it.” The idea that you have to work for what you want has been destroyed in this country over decades. Now, if you want it, you should get it even if you can’t afford it. Either someone else will pay or you can skip out on the debt. We have turned into a nation of children who want something for nothing.
It’s one thing to default on debt because when is out of work or underemployeed. It is another to ignore it and buy a new iPad.
those IOUs are as good as money!
Deadbeats and slackers don’t use i.o.u.’s they use u.o.me
the democrats are doing all the can to help them.
When over half of the population are dead heads, what do you expect?
Unintended consequences of managing the economy to be pro-bank. If housing were allowed to fall, banks to fail and businesses to reorganize our economy would be back to normal.
What used to happen is that wages fell, but so did prices. The Fed/WH ZIRP is punishing savers, benefiting banks and borrowers are caught in a trap.
I have no idea why you responded to my post with that picture.
Are you suggesting that seeking to become debt free is for suckers?
Money left in the bank earns no interest.
I have no interest in investing in the stock market or real estate.
I decided that the best/safest thing I could invest in was paying down my debt. Most of my debt is commercial debt and I pay as high at 7% interest on it. Paying that debt down is saving me a massive amount of money over the life of the loan with zero risk.
I certainly, don’t view you in that light, but rather admire those that have done what you have. However I posted the image that represents the view of the 47% towards those like you that have accomplished anything on your own.
Perhaps when you have been a freeper for over eleven years or more as I and many freepers have you will understand freeper sarcasm.
ah ok :) no worries
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.