Savings and Debt

After reading this article, "Couple learn the high price of easy credit", all I have to say is Hoe-ly cow! This family is over $100,000 in debt! I can understand how people fall in to so much debt. With interest rates as high as 32%, if allowed to go out of hand can easily spiral out of control. I believe the reason American's don't save more is because the cost of living is increasing , yet incomes are staying the same. It seems remarkably easy to fall into debt.

Other nations are suffering a similar faith or falling savings rates. From 1990 to 2003, Japan has suffer a sharp decline in it's savings rate. And while the United States's savings rate did climb in the year 2000, it has since fallen off, lower in fact than that of Japan, Britain, France and Italy.