3 reasons the average American may be worse off than Greece

[WTF]

If you look at the history of credit card and student loan laws in this country , you will see how the banks have been more like drug dealers than banks...


http://www.msn.com/en-us/money/savin...U221DHP#page=2

Between its government and its banks, Greece owes 323 billion euros to creditors and its debt-to-income (GDP) ratio is 177%, according to Trading Economics. In other words, Greece owes 1.77 euros for every euro it earns. The average U.S. household, by comparison, owed $204,992 in mortgages, credit cards, and student loans in mid-2015 on a median household income of $55,192, according to data compiled by Sentier Research. This translates to a debt-to-income ratio of 370%, which is much worse than Greece!

Individual debt, on the other hand, is governed by a different set of rules. If the average American declares bankruptcy, many big components of his or her debt, like student loans (which account for nearly 10% of total household debt, according to the New York Federal Reserved) aren't usually forgiven. Barring special circumstances, you owe these debts till you die (and sometimes even after).
Many other forms of debt like credit cards or tax bills are also usually not subject to default, or at least the vagaries of a bankruptcy court judge, and can result in freezing of assets and wage garnishing. All that puts Americans, especially those in the lower-income bracket, in a virtual debt prison compared to the leeway available to a nation like Greece (albeit, not without pain).

[DSK]

Originally Posted by WTF

If you look at the history of credit card and student loan laws in this country , you will see how the banks have been more like drug dealers than banks...


http://www.msn.com/en-us/money/savin...U221DHP#page=2

Between its government and its banks, Greece owes 323 billion euros to creditors and its debt-to-income (GDP) ratio is 177%, according to Trading Economics. In other words, Greece owes 1.77 euros for every euro it earns. The average U.S. household, by comparison, owed $204,992 in mortgages, credit cards, and student loans in mid-2015 on a median household income of $55,192, according to data compiled by Sentier Research. This translates to a debt-to-income ratio of 370%, which is much worse than Greece!

Individual debt, on the other hand, is governed by a different set of rules. If the average American declares bankruptcy, many big components of his or her debt, like student loans (which account for nearly 10% of total household debt, according to the New York Federal Reserved) aren't usually forgiven. Barring special circumstances, you owe these debts till you die (and sometimes even after).
Many other forms of debt like credit cards or tax bills are also usually not subject to default, or at least the vagaries of a bankruptcy court judge, and can result in freezing of assets and wage garnishing. All that puts Americans, especially those in the lower-income bracket, in a virtual debt prison compared to the leeway available to a nation like Greece (albeit, not without pain).

Conspicuous in it's absence is the mountain of debt being taken on in search of larger homes with low equity. I think people should save up enough money to put 50% down. Defaults would be non-existent, and houses would be much smaller and therefore less waste of America's resources.

I think we can all agree that the increase in average home sizes has been an ecological disaster for America, causing a mass loss of trees and open space, and huge and wasteful expanses air conditioned by electricity principally manufactured by natural gas or coal.

[shanm]

^I see you took your meds today.......

[Old-T]

Originally Posted by DSK

Conspicuous in it's absence is the mountain of debt being taken on in search of larger homes with low equity. I think people should save up enough money to put 50% down. Defaults would be non-existent, and houses would be much smaller and therefore less waste of America's resources.

I think we can all agree that the increase in average home sizes has been an ecological disaster for America, causing a mass loss of trees and open space, and huge and wasteful expanses air conditioned by electricity principally manufactured by natural gas or coal.

I find it difficult to argue with that. Or with WTF's initial post.

[IIFFOFRDB]

Greece and America both have communist leaders, so you got that, Ozombies...

[gnadfly]

Originally Posted by DSK

Conspicuous in it's absence is the mountain of debt being taken on in search of larger homes with low equity. I think people should save up enough money to put 50% down. Defaults would be non-existent, and houses would be much smaller and therefore less waste of America's resources.

I think we can all agree that the increase in average home sizes has been an ecological disaster for America, causing a mass loss of trees and open space, and huge and wasteful expanses air conditioned by electricity principally manufactured by natural gas or coal.

You ever see these shows featuring "tiny homes?" They're like 400 or so square feet. You see these couples walk into the home and the woman invariably has this look on her face like "There's no way in hell I'm living in this thing." It's just like the trend a few years ago to have a massive luxury kitchen in a house so that the women would compel the man to buy the house ...and for the most part, the woman rarely cooks.

Long story short, just wait until interest rates start to rise and can't sell their homes and can't pay their school loans.

[WTF]

Originally Posted by DSK

Conspicuous in it's absence is the mountain of debt being taken on in search of larger homes with low equity. I think people should save up enough money to put 50% down. Defaults would be non-existent, and houses would be much smaller and therefore less waste of America's resources.

I think we can all agree that the increase in average home sizes has been an ecological disaster for America, causing a mass loss of trees and open space, and huge and wasteful expanses air conditioned by electricity principally manufactured by natural gas or coal.

I think the government should quit allowing you to write off any interest mortgage and should actually get out of the home loaning business. That said my house is paid for and damn hear every home I sold, the buyer at that end of the market bought in cash.

The very wealthy will always have large, large homes.

[CuteOldGuy]

No bank will finance the flophouses you build, WPF.

[DSK]

Originally Posted by WTF

I think the government should quit allowing you to write off any interest mortgage and should actually get out of the home loaning business. That said my house is paid for and damn hear every home I sold, the buyer at that end of the market bought in cash.

The very wealthy will always have large, large homes.

I can respect you for that. The mortgage interest deduction drives these oversized homes for the middle class.

[WTF]

Originally Posted by CuteOldGuy

No bank will finance the flophouses you build, WPF.

They have but I self finance now.

You call this a flop house COGay?

[CuteOldGuy]

You didn't build that.

[Budman]

I think the mortgage debt needs to be looked at differently than other debt. Assuming you have a mortgage of 250K and your home is worth 300K you are just over a break even scenario if you sell. The problem is credit card debt that has zero secured debt. Many are living off of credit card debt and the banks keep giving them more cards and higher limits.

[nevergaveitathought]

school debt is a big problem

the easy credit given students by the government is a like a honeycomb for college administrators allowing them to keep featherbedding their nests with ever growing salaries and benefits and retirement packages that put all other government workers to shame - the money is available so the costs skyrocket

this fast and available money creates an ever escalating cost, all the while shackling kids with this huge burden

this velocity of money is the problem

its a circle that needs to be broken

[WTF]

Originally Posted by CuteOldGuy

You didn't build that.

You sound like Obama...

You do understand that subcontractors actually build a house...i just paid them to build it. That is how it works old man.

[WTF]

Originally Posted by nevergaveitathought

school debt is a big problem

the easy credit given students by the government is a like a honeycomb for college administrators allowing them to keep featherbedding their nests with ever growing salaries and benefits and retirement packages that put all other government workers to shame - the money is available so the costs skyrocket

this fast and available money creates an ever escalating cost, all the while shackling kids with this huge burden

this velocity of money is the problem

its a circle that needs to be broken

on this we are in 100% agreement.