Why Can't Americans Save a Dime?

[Mand 1]

One of the problems is that teenagers are offered credit when they have little or no clue how to handle it. They end up with huge debt by the time they get married and then it's a cycle they can't get out of.

Yup, a friend of mine, 26 year old female, close to 80,000 bucks in credit card debt.

Sh*t!!!! I would hate to have that burden, we have debts but nothing like that. I really pity her someone should put her on a Debt Diet!!

[Not Available 0]

When I moved here, I couldnt believe how easy it was for ANYONE to get a credit card! Back home, when I was even 20, it was hard for me to get one! Here they just distribute them like free samples!

[Mr. Big Dog 10,747]

Seems that we're going up the stream, against the wind or whatever you want to call it. Nani and I have zero debt and money in the bank. The only loan we will consider taking out is a mortgage...

[faith 0]

Holy #######! I can't imagine having that much debt. As I've said before, we don't have credit cards, just my car loan and the usual monthly bills. It just seems to work better for me that way.

Yeah me neither. My only debt is on an interest-free furniture loan and my mortgage. Pretty soon I'll be buying us a second car and I may finance part of that too.

I like having credit cards though. I like the cashback and the miles

One of our cars (it's a truck actually: a Ford f150) is paid off, but my car still has 2 years to go on the payments. We're wanting another can - a van actually, but we're waiting till the money is better so we don't get too far in debt.

Johnny is needing to build some credit, so we're gonna start looking for a credit card for him soon. (He starts a new job in 2 weeks and we want to wait for that). We're just trying to find a good card with a good deal for him tho.

[pax 0]

God, $80,000. I'm feeling lucky about my debt right now.

I have some, as I suspect most of us do (credit cards + car + student loans), but I don't lose much sleep over it. I'm selling my car later this year and returning to a car-free lifestyle, so no more car loan, and I'm on track to have my student loans paid off over 5 years early. I think when Ewen is here, it'll be good for us to be able to encourage each other to save more and spend less.

Plus no more phone cards, overseas postage costs...

[irishgirl73 0]

One word: Immigration. We had plenty of money saved before Javier was out of work for 6 months. Plus all the fees and trips to Mexico to see him while he was there. Maybe since he is back we can get caught up again.

With all the fees and since I'm now addicted to visiting Mexico, it's getting quite hairy in the financial department. I have 3 maxed out credit cards, a negative balance in checking, and no savings. I really need my Javy to come home soon!!

I just got a part time job so I can try to pay off what I refer to as my "Gavin debt" going to Ireland every three months is not cheap. Then factor in all this immigration #######, phone bills, you name it. I have some serious credit cards to deal with...............I am trying to pay everything off-I really am. When my man gets here things will be a lot easier.

But saving???? not possible for me right now

[Fandango 1,439]

You know what? It's a failure all around. I'll tell ya why.

My first year in college, there were these scouts on campus with clipboards giving away a free gift to apply for a Burdines (now Macy's) credit card. No history needed! Woohoo!!! I was not allowed to work in high school, so I never had my 'own money' as far as other than my allowance, which was huge, but not the same thing as not having to justify what you want to buy. This credit card called out to me 'this is your independance calling!!!'

Then you get one, and then another one gets mailed to you, then another, then another....I found myself at 17 with 18 credit cards....all with balances on them. I happen to be a very generous sort, and Christmas came around, so I splurged on my friends and fam. Well, of course I spent a bit on myself too, hahahaha. My mom, seeing all these bills come in...said 'hang on a sec' and sat me down & showed me how interest accumulates. Showed me how by paying minimun payments, I'd get outta debt in like over 10 years or something equally ridiculous! She put me on a schedule, I paid off the bills, then cancelled the accts.

If my mom hadn't taken that time with me, I have no clue where I'd be financially now.

Now, why can't home economics in high school teach you things like this? Or how about how to balance a checkbook to the penny? Many of my friends have no clue the exact amount in their checking accts. How about how taxes work, or the basics of having a 401k? I understand it's cool to learn how to bake a cake and sew pillows, but I think clueing in our youth as far as the hidden dangers of credit card debt....and trying to change the rationale of 'I can afford the payments'...are far more important & vital & are necessary tools for success, imo.

Edited March 8, 2006 by LisaD

[irishgirl73 0]

God, $80,000. I'm feeling lucky about my debt right now.

I have some, as I suspect most of us do (credit cards + car + student loans), but I don't lose much sleep over it. I'm selling my car later this year and returning to a car-free lifestyle, so no more car loan, and I'm on track to have my student loans paid off over 5 years early. I think when Ewen is here, it'll be good for us to be able to encourage each other to save more and spend less.

Plus no more phone cards, overseas postage costs...

I think Verizon may go out of business when Gavin gets here-I know I take care of at least a few salaries

[faith 0]

A lot of high schools are now making a credit 101 class mandatory for the students.

until that time, it's up to the parents to teach the kids about debt and how to manage it.

i never took home economics in high school, so i wouldn't know what you do with that.

[pax 0]

I think Verizon may go out of business when Gavin gets here-I know I take care of at least a few salaries

Seriously, I'm not worried about "affording" Ewen at all...I swear that paying for things until he gets a job here will be cheaper than trying to maintain a LDR!

[Inlove_tx 0]

I never had debts in my entire life, until I got here in the States.

My husband has a good job, but he still needs to pay off his student loan and it's not easy...with that debt, saving is absolutely impossible, right now.

...Even the entire amout of our 2005 tax refund will probably be going towards it...and we were so happy to get money back, for once!

But no procrastinations, I can't wait to have it all paid off, so that we can start saving and looking for a house to buy. No credit cards for us, though, we don't want to get into that...only debit cards.

Edited March 8, 2006 by Inlove_tx

[canadalaura 0]

I'm a saver all the way. My husband, not so much! I always pay off my credit cards, payed off my student loans the first year I was out of college and didn't touch my savings the first 6 months I moved here and couldn't work. The way I look at it, I would rather have a lower standard of living than debt or dip into my savings! As it is now, my entire paycheck is going to pay off my husbands credit card debt (which is really not *that* big) and that should be done in a month or two, after that, my entier check will go to savings - I want to go to grad school in a few years time and also buy a house!

I actually think that the first 6 months where I couldn't work was a blessing in disquise... we learned how to live off of one salary and still be pretty comfortable - and my husband doens't make a lot he's enlisted active duty military!

I just hate the feeling of owing money and grew up with my parents always talking about debt so I think that has a lot to do with it too! Don't buy it if you can't pay cash is my mantra!

[RaspberrySwirl 20]

No debt here. But hardly any money saved up either. We really needed a car and are barely making it from one pay cheque to the next (our hours have been cut down due to the slow winter manufacturing season but that should be fine in a few weeks time). We figure once we're back to 5 day weeks, we can start saving quite a bit. Fingers crossed, I guess.

Oh and we don't have any creditcards.

[Fandango 1,439]

A lot of high schools are now making a credit 101 class mandatory for the students.

until that time, it's up to the parents to teach the kids about debt and how to manage it.

i never took home economics in high school, so i wouldn't know what you do with that.

HAHAH that makes me feel old that curriculum has changed!!!

You're right, it is up to the parents.....I'm not sayin that it's completely the school's responsibility. But at the same time, if there are all these courses you need to take that are mandatory...I do feel that should be one of them. I don't know the last time I used my home ec skills (I actually paid this seamstress who lived near me to sew my pillow, hah...it was a 'boom box' pillow and I got an A)

I suppose in my instance, no one ever thought a credit card co would be soliciting kids at school (this was 1991). Not to mention, I don't even think it was legal in my instance...I graduated hs a year early & was still a minor when I got all the cards. Hrmm, maybe I didn't *HAVE* to pay them, lol.

But if schools are teaching it now, then that's great! I think it will pay off in the end for many kids....and maybe they'll get more picky with their money, and not make the 'lattee factor' keep them broke.

[eau_xplain 2]

We have a mortgage and some credit card debts but no car payments. We bought the house about 6 months before we got married and we had to buy a lot of new appliances and some furniture. It was tight for a while because half of hubby's salary went to alimony and child support. With me working now, we are starting to get a handle on our credit card debts. Each year it gets better as the alimony drops down a bit.

Any savings we have is my husband's 401k at work. I am hoping to start building up our savings (and still keep reducing our cc debts) by September when the alimony drops down again.