Why Families are Having Such Financial Troubles 05/07/2013

by Moody Adams
"Polonius wouldn’t have gotten very far in America today," says Kim Khan. He's the Shakespeare character in Hamlet who warned, "neither a borrower, nor a lender be."

Americans are $16 trillion dollars in debt. They owe $18,654 per household not including mortgage debt; up 41% over 1998. Personal bankruptcies have doubled in the past 10 years. Nearly 43% of American families spend more than they earn each year. Average households carry some $8,000 in credit card debt.

American consumers owed a grand total of $11 trillion dollars at the end of 2012.

Why are we Americans having so much debt and financial trouble?

First, we have more things to buy than any people in history.

Second, we have the greatest marketing in history. The Madison Avenue boys know how to make us buy products.

Third, we have easier credit than any people in history. Fast cash payday lenders who loan 15 million people cash every month, at an annual percentage rate (APR) of 300–400 percent, have also played a role. They seductively offer fast cash — at absurd interest rates — to 15 million people every month.

Fourth, gambling is seducing us out of our money. A household with income under $13,000 spends, on average, $645 a year on lottery tickets, about 9 percent of all income. Government, the people’s protector, is teaching them they don’t have to work, just buy a lottery ticket.

Fifth, this generation has not only removed the Ten Commandments from public display, but from its hearts—namely the commandment against covetousness. Scripture warns in Proverbs 22:7, “The rich ruleth over the poor, and the borrower is servant to the lender.”

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