Buying things you don't need with money you don't have?
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Big Banks encourage Debt-to-the-Extreme
March 15, 2007

Source: Pahrump Valley Times
According to Scurlock, incomes have risen about 1 percent in “real terms” in the past generation, while household debt increased over 1,000 percent. Scurlock cites the Federal Reserve in saying that 12 percent of young families were more than two months behind on their debts in 2004. With new bankruptcy laws, that figure has undoubtedly gone up. Scurlock interviewed people in the industry and, to his shock, found that credit card companies and big banks encourage debt-to-the-extreme.

Fees and “extras” such as unneeded insurance are the ways that banks make their money. For instance, although Scurlock says they take little to no time to process, there’s a reason that “bounced checks” come with a $25 or higher bank fee.


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