Americans and Money Today Americans are generally becoming more irresponsible with their money. In some cases Americans are spending more money than they make in a year. This is partly due to not having a budget, bad spending habits, credit card debt and impulsive purchases. Some Americans are also not saving money for incidents or emergencies. For instance the primary vehicle breaks down. There is no savings, what will he or she do? Get a loan? Use the credit card? Or perhaps borrow money? By not having a savings this will cause the person to be in debt. Because of the ease of obtaining credit cards and convenience Americans have generally become more irresponsible with their money.
It can be easy for Americans to get into a large amount of credit card debt. After acquiring one credit card with a low credit limit the card holder can make a small purchase, then make small monthly payments on the amount charged. After making the on time payments, the credit company will often raise the credit limit allowing a larger dollar amount to be charged. This is fine, as long as the credit card holder continues to make the monthly payments. As the monthly payments are made the credit card holder’s credit score is on the rise. This could raise the limit on the card so that a larger amount can be charged on the card. This will also give the credit card holder more chances to apply for new credit cards. Some Americans can end up with more than five different credit cards, allowing their debt to accumulate very quickly. In the event that the card holder loses their source of income he or she will have no way of keeping up with the amount due on a monthly basis. In some cases Americans begin to use one credit card to pay off another, causing a chain reaction of debt that could be nearly impossible to recover from.
Americans have also become accustomed to convenience, such as