Savings and Debt.

After reading the article I was shocked to see that most of the American population is in dept due to high interest rates and fees charged on credit cards and loans. Inflation has also been a big problem and factor that leads people into dept. Loans are a great way to help you pay back money, but if your late in paying them back the interest rate goes up, which is not so swell. I feel really bad for the Moellering family and families like them because they only make a certain amount yearly and they cannot compensate to pay back all the billls ranging from credit card debt which came out to $22,228. While loans were balance of $68,574, at 8 percent interest. People get into dept easily because they get a lot of credit cards, take out many laons especially when starting a business or buying a house. Finance charges are dangerous because they add extra money to the amount of credit you use and builds up resulting in a larger amount to pay back.

Americans don't save money anymore because it's so easy to use credit cards and due to inflation is harder to save money. When people use credit cards its fater to spend money and people can't save money because they have to pay it back with interest rates. People are just always buying what they want and they don't really look at the price tag when they swipe their credit cards or take out big sums of loans.

Compared to other countries The United States has the lowest persoanl savings rate dropping to zero percent compared to other countries. In France, the savings rate was 11.6%. Germany's rate was a robust 10.6%. Japan clocked in at 6.7%. Many say due to the Baby Boom back in 1920's the savings rate has gone down.