Part 3/10:
Reasons for Rising Consumer Debt
Many Americans take on consumer debt as part of key life investments, such as buying a home or funding education. However, an increasing number of people resort to borrowing as a means of managing everyday expenses. The adoption of credit cards in American culture has transformed spending habits, allowing consumers to manage cash flow but also leading to unsustainable levels of debt.
It's worth noting that while government debt affects the financial market, consumer debt directly impacts everyday lives. Defaults result in losing cars, homes, and even financial stability altogether. When numerous individuals begin to struggle with debt simultaneously, the consequences can reverberate throughout the economy.