There was another report out recently that spelled the troubles of Americans when it comes to saving money. The U.S. had an average –0.5% saving rate last year—the lowest of any major economic nation in the world. The average household has over $7,000 in credit card debt. How is this sustainable?
It is not. Attitudes and culture must change in America to change it from spend spend spend to save for your future and a rainy day. Spending money on things you cannot afford is much more fun than contributing to your savings account. These problems are magnified when you look at the housing market. Manuy of the people already in debt were getting interest-only loans on their home or dangerous ARMs. Things for the average American will be getting worse very soon and the divide between the Haves and the Have Nots will expand further.