How do people have so much debt?

[Tennis]

I'n the states most people are not able to have savings, living paycheck to paycheck is about 60 percent of Americans. A living wage without racking up at least 50k is student loans is near impossible.

How do they get into this position in the first place?

If they can't afford to pay back their student loans then work in an industry like construction where it isn't necessary.

[schwarzkopf]

I got $200k into debt because the universe decided to throw too much shit at me.

But $30million ... I can't even imagine doing that.

[Deleted]

How do they get into this position in the first place?

If they can't afford to pay back their student loans then work in an industry like construction where it isn't necessary.

Its almost like you don't live in reality.

[Surfd]

I'n the states most people are not able to have savings, living paycheck to paycheck is about 60 percent of Americans. A living wage without racking up at least 50k is student loans is near impossible.

The insanely crazy part is that "living paycheck to paycheck" in America is not just relegated to the low income families. There are people making 50k a year living paycheck to paycheck. There are also people making 3 times that much who do the same. They have a stupid expensive car, a huge-ass house, live in an affluent neighborhood they can just barely afford to be in, and are paying 15-20k a year to send their kid to private schools which leaves them in exactly the same situation, because the American dream has convinced them that they absolutely have to be keeping up with the joneses and living the most bleeding edge life they can afford, or they are doing it wrong. Yet you try to explain to them that they could adjust their lifestyle a bit and be banking huge savings and they look at you like you have 3 heads.

[Natrii]

How do they get into this position in the first place?

If they can't afford to pay back their student loans then work in an industry like construction where it isn't necessary.

Let me explain how jobs work in the States. You are told you need X Degree, you get the degree and student loans,The problem is everyone else did the same thing. Now the job requirements are X degree and 2 years of exp, or just the degree, but you don't get paid shit because they are letting you get "experience". With that now your interest on your loans is going up on loans you can't afford to pay back, because you are not getting that pay the prospect of the magic piece of toilet paper promised.

[Danbala]

two words:

student loans

[Tennis]

Its almost like you don't live in reality.

No?
Why would someone put themselves in the position where they live paycheck to paycheck. Isn't that poor planning and judgement most of the time.

[Deleted]

No?
Why would someone put themselves in the position where they live paycheck to paycheck. Isn't that poor planning and judgement most of the time.

Not really. Its called life. I can't work out what you do for a living to think that you just plan abit and suddenly you are in a high paying job.

[Tennis]

Not really. Its called life. I can't work out what you do for a living to think that you just plan abit and suddenly you are in a high paying job.

Nobody said that. You get an education, you get an occupation, you pay off loans and plan for the future = win

[Natrii]

No?
Why would someone put themselves in the position where they live paycheck to paycheck. Isn't that poor planning and judgement most of the time.

Please attempt to see how the US works. Yes, it is most certainly our fault some times. Our system is built with so many pitfalls it is not even funny. We even have entire industries made to target people who fall into these pitfalls and drop them deeper. Look up payday loans and buy here pay here car lots...for those of you who don't know about those...don't do it, it may seem bad and you may need it...It will make it worse 99.99 percent of the time.

[Surfd]

No?
Why would someone put themselves in the position where they live paycheck to paycheck. Isn't that poor planning and judgement most of the time.

That's a stupid question. Because they are people, and people do a lot of stupid shit.

Might as well ask how professional sports players, who make more in one season then i will in my entire life, who play for 10+ years, can still manage to end up broke well before they even reach the general retirement age.

[Theinquisition]

Because people be dumb, like my ex wife

[Glorious Leader]

Wages have stagnated while inflation has continued. In order to maintain living standards, go to college, get medical attention or own a house people took out debt.

[Jellybear14]

There are many ways to look at why there is an high proportion of people in debt. Those that want a good career have no option than to go into debt with student loans unless there family is rich and pay for them to go university. Those that have to go into debt when life throws things at you, being made reduntant and private medical care to mention just a few. Then there is the opposite end of the spectrum, people who think "I want that, I want this" irrelevent of wether or not they can afford them. I know people who live on benifits because there to lazy to work, that have huge 4k tv's, PS4's, Xbox 1's, multiple computers, multiple cash loans and various catalogues. They struggle each week to make sure they put food on the table because of how much debt they have. Then when they want something new, they skip paying bills just to get the item they have to buy.

I have worked my entire life and only had things I could afford to purchase in full with the exception of a new car to which I had finance. When I made the decision to buy a new car I looked at my job security, what I could afford and which vehilcle was more economical to run. It annoys me that hard working people pay there taxes for lazy layabouts that think the world owes them a life of luxury to have what ever they want irrelavent of cost, most people simply realise they cant afford so don't have until they can....

[Themius]

People have credit card debt because they think credits cards are money.. it's not... I only use credit cards equal to what I'll actually use in cash for the month. I literally use credits cards for every single purchase I make... simply because 2% cashback on everything is well... why not?

[Glorious Leader]

two words:

student loans

Which are not subject to bankruptcy law

[Caelia]

Its almost like you don't live in reality.

More like he's living in a country with subsidized education, hearing the sums americans rack up in student loans just sounds quite insane to a lot of people.
What you guys seem to see as a minimum of debt for studies is pretty much double of what someone sees as a lot of student debt here.

[Tennis]

Fist of all, US does not have healthcare, it is all privatized and we pay out the ass for insurance. Second I was well within my means before I lost my job. Before you get on your high horse, you may want to so some research into the socioeconomic climate in the United States.

Yes and they can't turn people away without insurance from the ER. If you show up they must serve you.
Why are they billing you for that?

Well if you were within your means then shouldn't have had a rainy day fund set up in case you lost your job? Especially if you didn't have job security.

[Deleted]

Well if you were within your means then shouldn't have had a rainy day fund set up in case you lost your job? Especially if you didn't have job security.

Because life isn't as simple as: Get good job, save money.

[Elegiac]

Yes and they can't turn people away without insurance from the ER. If you show up they must serve you.
Why are they billing you for that?

Being required to treat someone doesn't mean they can't charge you for it.

Well if you were within your means then shouldn't have had a rainy day fund set up in case you lost your job? Especially if you didn't have job security.

You truly underestimate how expensive medical care in the US actually is. It is literally cheaper for me to buy a plane ticket back to Australia to undergo major treatments there than it is to get treated at a hospital five minutes away in Washington.