Consumer debt!!??US only or worldwide??

[Youmadorwhat]

I have joined a budgeting page through another SM site and it is mainly American based. I joined as I wanted to learn how to budget a bit more so I could save more! I was absolutely aghast at the sheer amount of consumer debt some of these ppl have!!! And they are only in their 20’s and 30’s! Like I mean 10s of thousands on credit cards!! How does this happen?? Is this happening in the Uk/EU too??

Yes. I believe consumer debt is at record levels due to low wages.

Even just looking at the threads on mumsnet this seems common in the UK too

I just don’t think I could sleep at night 😬

It happens to some but not others. Some people in their 20's are very money wise and have no consumer debt and live within their means.
Advertising I expect plays a big part, we are encouraged to buy stuff all the time, often stuff we do not really need.

Interesting podcast series: Meaningful Money: Millennial Finance

I'd love to think that this is an uncontrolled, unsustainable debt bubble that is going to go pop at some point and the whole house of cards will come crashing down.

But sadly I think what we're seeing is just the new normal... Suppressed wages and cheap and easy credit creating a population of disenfranchised obedient, compliant debt slave worker drones, kept on the hook throughout their entire lives.

Whenever things start looking a bit dodgy (like 2008) a bit of money printing and some limited debt forgiveness and forbearance will keep the whole charade going.

You have to remember how expensive college education and health care are in the US too. Even though college fees won't go on someone's credit card, IMO if you have a large debt already, psychologically it is easier to acquire more debt than if you were debt-free. I think student loans and fees here in the UK have contributed to changed attitudes to debt as well as suppressed wages and easy credit.

in the us just the medical bill for a simple broken arm is $$$$
insurance excess (if you have insurance!) is often quite high as well, so people chose to put it on the credit card.

Medical bills, dental surgery etc. Even with insurance the costs are high. I can see how it can happen.

Education is a big part as others say

Uk is 9 grand a year isn't it plus all the other costs

I read a thing saying its a deliberate thing as if you can get your population in debt young you can control them more easily / they are less able to be disroptive etc

I think there's something in that

@jemihap has it.

Yep jemihap you've nailed it.

Menu, that sounds about right. Keep the population busy trying to just about keep their heads above water and they simply won't have the time or energy to think about just how they are being exploited, enslaved and oppressed and therefore will not consider doing something about it.

Hi OP I was thinking about this the other day too! I follow different budgeting and baby steps money management forums/groups and I’m in total shock at the sheer amount of personal debt. Each to their own, if its affordable but I’m seeing more and more often that young adults having car, medical and credit card/loan debt before their 30s and it boggles the mind. It made me think about how ethical the lenders are and if they take personal circumstance into account. The credit limit on some of these credit cards are outrageous. I’m speaking as a Londoner, living and working in the UK. I’ve had my share of money mistakes and avoidable debts etc but not in the realms of a house price!! Ishhhh I agree with your observation.

@Youmadorwhat I'd be more aghast that you've not realised this before. Zero hours contracts, low wages, high rents, thousands of children living in poverty. Have you seen how many people have to use food banks? If you can't afford the basics, let alone the needs and wants that society tells us we should have, then debt is inevitable.

And yes, you probably wouldn't sleep at night, and worse. There is a high correlation between debt and mental health illness.