I do have some sympathy, or at least some understanding. Like Ben Stein says, one of the biggest problems is inequality. How do you make up for that? Overspend to make up the gap. Dumb. But human nature.

I also have very little sympathy. I understand when someone gets in debt because of a true emergency like life-saving medical treatment – most of us would rather be alive and in debt than dead but with money. Sometimes insurance refuses to pay, sometimes the bills are so huge that even out-of-pocket costs add up. But I have very little sympathy for those who spend more than they earn.

I also don’t believe that it is “lack of financial education”. I grew up in Soviet Union, hardly a place for “financial education”, yet it always seemed obvious to me (and my parents who could barely speak English) that credit card bills must be paid in full before the interest starts to occur. It was also obvious to most immigrants I know. It’s really quite simple: 1) if you borrow money you have to pay it back – this is moral, not financial education 2) with credit cards if you don’t pay on time you have to pay big interest. Interest adds up. Hardly rocket science.

Unfortunately, like usual, it comes down to fundamentals: spend less than you earn and avoid the mess.

Happy holidays one and all!
-
Ryan
http://uncommon-cents.net/