Digg post: “For several years now, artificially low interest rates have been propping up the economy. But what’s going to happen when that support is removed?”
Most of us think owning four or five credit cards is normal. 69 percent of households carry a mortgage. A century ago it was frowned on to go into debt for anything. Credit cards did not exist back then. No one can predict the future, but with most of us reaching the debt saturation point things will change. Lenders have continued to come up with creative ways for us to borrow more money and we have readily taken on debt. This situation will change.
I personally would like to get in a position where my children would not have to get into debt to live the American dream. If my financial situation allowed for it, I would rather invest in their future by providing them a house versus them taking out a mortgage. My only concern would be that this could affect their work ethic and they would still get in credit card debt just because they can.