Why cant people limit their consumption to what they can afford? Why do they need to lend money from the bank? Why do people want to get in the hands of loan sharks, when they can minimize their expenses and still live a normal life?
People feel like they cant live without money. They can get dependent of money, dependent of using their money, and when that happens they dont hold back. If they take loans in the bank, they take another loan to pay of the current loan. In that way they will always be in some kind of debt.
America has always been on the number one of those who were in the biggest debt. In the latest years Britain got that title, even though it is nothing to be proud of. In Britain, credit-card debt has doubled in the past five years; mortgage lending is up by nearly 300 percent. The average Briton now carries around 4,000 in debt, 40 percent less than the average American, but they also makes a lot less money than the Britons.
Everywhere you go can find a place, where you can get a loan. If you going to buy a television, you can get a loan on about 20.000-30.000, and that is much more than you need, but especially young people take advantage of these loans. At a London branch of HSBC, the worlds second largest bank, an ad presents images of a red sports car, a sofa and other items, and says: Come in and ask for a personal loan. Make your dreams come true. They advertise everywhere, and some people arent thinking before they take a loan.
Some people use all their money on one time, for example Igor Novakovic, who is a man at his best age, 27. He is Croatian born web publisher and lives in Oxford. He spends nearly all his paycheck on luxuries. He bought a 400 stereo, and then couldnt pay his phone bill.
All these shoppers which are spending tons of money are very good for the European economic, but it isnt good for them. They can get in big trouble, and lose everything they own, for example their house or car. That is also one of the reasons...