According to figures from the Institute of International Finance (IIF), global levels of debt held by households, governments, financials and non-financial corporates jumped by over $US70 trillion in the past decade to a record high of $US215 trillion, equating to 325% of global GDP.

End , be prepared

I am so happy that neither my wife or I have any debts at all.
We might not have much,but not having debts makes us
pretty rich.

dutch1898 wrote: I am so happy that neither my wife or I have any debts at all.
We might not have much,but not having debts makes us
pretty rich.

I agrre with you 100%


Look at this data
One in 3 living beyond their means.......wow , that is sick

Credit may have been a good thing at one time but I tell ya, I don't think so any more.

I'm talking about every day average income people.

I know kids got to start some where but I think not just kids, adults too, need to start out very small if
they need loans such as car or house. This is also how you build good credit.

No doubt it is crazier now than ever before.

When you drive by a huge house, just know they probably have a huge mortgage too.

I haven't had any debt (apart from the occasional small cash loan from a friend for a couple of days/weeks) for over 15 years. I don't own much, but I don't worry much either.

Sometimes I shudder when I see what levels of debt young people are getting themselves into these days. It all has to be paid back, and interest rates won't stay at historical lows forever.

Sadly, Australia is at the top of the list when it comes to household debt. Much of that can be put down to our crazy obsession with buying big houses (do 2 adults & 2 kids really need a 5-bedroom McMansion with private ensuite bathrooms for every bedroom?). Here in Sydney, house prices are increasing at a ridiculous 19% per annum! It now costs over $800,000 to buy an average home in the suburbs. Next year it will cost around $900,000 to buy a house here, and by 2020 you will need to have over a million dollars to buy a basic home in Sydney.

It is just complete NUTS!

I hate debt. The quality of your life isn't even about how much you make. It's about how much you do not owe. I think about all those people in states like California who over extended themselves on half million dollar homes in an inflated real estate market. Then the economy tanked for awhile, they lost jobs and the banks foreclosed on their homes.

Speaking of debt, I just paid off my car yesterday. May I hear the sound of margarita glasses clinking in a salute throughout several countries, please?

Story from U.S.A.....in reality story of the world today

Stagnant wages, and prolonged unemployment and underemployment have meant that many Americans continue to struggle to save. Finding it difficult to build wealth through homeownership has also impeded many individuals and families from making progress in meeting their savings needs, according to a national survey released Monday.

The survey found that only about one-third of Americans say they’re making “good” or “excellent” savings progress, while nearly two-thirds are making only “fair” or “no” progress.

The survey found the issue for many Americans, regardless of income level, is the ability to spend less than they make and save the difference.

“Only about one-third of Americans are living within their means and think they are prepared for the long-term financial future,” said Stephen Brobeck, executive director of the Consumer Federation of America, which commissioned the survey along with the American Savings Education Council (ASEC) and the Employee Benefit Research Institute (EBRI).

Not just the stoty of USA . 20 years ago our PM started a boom in the realestate prices and the rocket keept going up to insane hights for 15 years . + teaching that loaning is good . He just forgot to mention loans also have to be paid back and if not forced auction and the Repo man happens . 15 years ago our financial experts cried out and tried to get our PM to stop this insane devellopment by law , but he refused . He needed the money to generate new jobs in our country , witch also happened . 5 years ago the prices of realestate stopped ricing and started dropping and the forced aauctions started gaining in speed . Many today is on the border of forced auction due to loans since the real estate sales prices is 30 to 50 % below what they gave them self at the moment . If 1 of the couple loses a job many houses will end on auction due to it . Our employment market is also reflecting it , they cut down on staf due to missing private contracts and missing money witch just makes point 1 even worce . We might only have seen the tip of the iceberg here yet and it might turn a lot worce in the next 10 years . Many here in the country needs lessons in how to manage their money badly .

They don't teach real life skills in school and they should from an early age on up.

A house is the largest expense most people will ever have in their life.

I have some old friends in Chicago land that married a couple of years after I did back in about 1975.
They are still married, have two grown sons. They bought a house shortly after they married and they
still live in that house today. About 40 years in the same house. Not a fancy house. Just a good solid
average 3 bedroom house in a good neighborhood. She has worked the same job for over 40 years.
Her husband more or less did too but now he is retired, has diabetes.

The point I am making is, they bought a house they could afford and kept the future in mind when they
bought it. It was not a huge house but large enough to raise a couple of children and close to their jobs.
Their house was paid off years ago. Now that he is retired and she is soon to be retired, they have no
financial concerns. They saved and invested all their lives and have great retirement incomes.

Most people do not focus on their future like they did. They used common sense and did not go above
their heads.

I actually watched a video that someone had made last year about how the debt would be the downfall of the US it was pretty interesting at the same time scary as can be, however as for me I have no debt. My home is payed for we payed cash for the older vehicle I drive, and I have no credit cards. If I don't have cash for something I don't buy it. End of it right there.

I think credit is a good thing. It's a very good thing. It's just that today more so than ever before,
I believe too many people have gone way over their heads with credit that it has the reverse affect
and they get deeper in debt.

Valerie, you're right on what's taught in school. I learned about art history, Egyptian pharoahs, George Washington, English literature and everything else under the sun except how to balance a check book, investing or the magic of compound interest. Everything I learned was fascinating but none of it prepared me for daily living.

being in debt is not not a good thing,trying to get out of it means working endlessly,sleepless nights,worry,anxiety,depression and all the rest.
in the olden days life was better,you just got by on what you basically had and ppl survived,didn't they?
this new age of technology,latest smartphones,sporty cars,gucci bags and chanel perfumes are just all luxury items which we can really do without but we want them,we DONT need them.

The world started off with Adam and Eve in a few animal skins i guess, nowt to their name,now look at the world? we have made something out of nothing basically and are continuing to do so,,,,,,,,,,,,when will technology reach its peak?

as long as things keep improving and being introduced on the market,peoples desires will become greater and so will the credit and so will the never ending debt.

Yeah I think that is changing at least some what, in some schools.

Every year of school, children should be required to have a life skill class.

Take the kids to the bank, the hospital, the nursing home, the animal shelter, real estate office, etc.

A life with out debt is like living in heaven what is the use materialistic possessions with lot of debts

these things or objects of desire are nothing more than reasons for increasing blood pressure ,coz either you cant afford one,or you got one but can't afford the next model and that leaves many of us tense,believe me,
my previous phone was a samsung s5 and i wanted the latest,samsung edge7 which i got about 6 months ago,the screen was so fragile that my nephew had it and dropped it on the table,which cracked the screen in several places.
fortunately i still had my old phone so i'm back to using that,never again will i go for an expensive phone again,i realized that all i need is something cheap and cheerful that does what i want it to do,not to show the whole world that i got the latest.

Debt can be good , bad or ugly
Depend how one is using it
Sad, most of us are using it in bad way

I like material things.

The way I see it, I am only here one time. No one has ever proven me wrong.

So while I am here, I enjoy material things but I only go with what I can afford.

this topic reminds me of this programme i watch,'hoarders' its an American programme comes on sky,,,so sad what ppl have accumulated over the years,its an obsession of buying things at sales,feeling lonely,bored,loss of dignity etc.
i feel really sorry for these people.

anyone else watched this?

valerie wrote: I like material things.

The way I see it, I am only here one time. No one has ever proven me wrong.

So while I am here, I enjoy material things but I only go with what I can afford.

material things, loved it before but now I do not give a shit for that now

Moments with family or friend have better value

What I earn my family spend not me , I do not care much for material things