Jobs are gone and most and never coming back, suddenly countless are faced with running out unemployment benefits. The credit card and other bills have not stopped coming even though the paycheck have. Faced with putting food on the table, paying the rent or mortgage and paying the credit cards, the decision is not difficult. Staying alive has become first priority everything else can wait..
Perhaps this was the only means that we could learn our lessons and come to grips with reality that we cannot live beyond our means. I sincerely hope that even those that have been fortunate enough not to face this type of circumstances have learned from what they seen occur to friends, family and neighbors.
To blame this totally on the consumer would be irresponsible. Credit card companies lured many into credit with flavorful offers that the debt addict could not resist. Buy now, pay later, zero interest rate for a year, no annual fee were some of the marketing cries of these companies. Now faced with increasing losses from people unable to pay these seemingly sweet and wonderful companies have turned into vicious monsters. Inflicting further misery to the consumer they once so much loved by jacking up interest rates to 30%, lowering credit limits so many ended up over limit and without a lifeline, and other wonderful ways of torturing the already moribund consumer.
Mortgage companies played the same game, low teaser interest rates, small or no down payment and lured many into buying homes that they could not pay for at a time when real estate prices were at their highest point. Those homes are now being foreclosed and its occupants left looking for a place to live. The situation became so critical that even banks hesitated taking properties back.
It really does not matter who you blame, it was a covenant of mutual destruction that will have ramifications for generations to come. Pointing out a single party as responsible would be convenient, but useless. It cannot change was has already been done.
What we take away from this experience is what important.. Any difficult situation has its positive aspect. This particular one may mean that we finally learn to kick the debt habit.
This may not much condolence to those in situation of having too much debt. For them there are debt relief programs, such as debt consolidation and debt settlement that can assist them greatly. It is better to deal with debt and debt addiction then ignore it hopes it goes away.
