Why are so many Americans in credit card debt?

Why Are So Many Americans in Credit Card Debt

Why Are So Many Americans in Credit Card Debt

Introduction

Credit , in one form or another , has been in existence as long as human beings have traded one valuable commodity for another , and indeed modern day credit is a valuable financial tool that makes it possible for individuals and businesses alike to obtain the things they need in the present day and pay for them over time . However , since the advent of credit cards for individuals , which allow those individuals to borrow

unsecured money for any purchase they choose , Americans have racked up almost 1 trillion in credit card debt , with the average American family carrying almost 10 ,000 of that burden on their own shoulders (Royal 2008 . With such major amounts of unsecured debt threatening the future of the most powerful economy on earth , the question of why so many Americans are in credit card debt is worthwhile to answer . This research will explore several different perspectives in to attempt to explain this phenomenon upon completion of the research , a better understanding of American consumer behavior , human nature , and modern economics will have been gained

The Origins of American Consumer Debt

To understand why so many Americans are in credit card debt is to first understand the origins of the widespread consumer debt of modern America itself . As was mentioned briefly in the introduction , the concept of getting something now and paying for it later is as old as...