Savings and Debt

I believe that when you start to spend more then you make that is when you need to cut your credit cards, even if you haven't maxed out. In the article if the couple would have calculated all the charges they made to their credit card they may not be in this predicament. Many people get into debt by not calculating the costs of the items they buy. Majority of the time they keep charging it and saying "I'll be getting my check in a week." which can be true but they don't focus on the amount they are getting. Finance charges were put in so that the companies who technically loan you the money first will get something in return for their services. However if you fail to pay it off first time around the charges build up and you eventually pay more with your credit card then if you have paid with your money.

Majority of the American people are in debt so they can't afford to save money, their busy paying off bills. The rest who are not in debt don't see the point in saving their money which gets them the most 5% which isn't a lot, compared to buying real estate. In general not only in America is saving rates declining, in France, Britain, Italy, Germany, and Japan all dropped.