One reason our consumer debt is spiralling out of control is because money is easier to access today compared to 20 year ago.

In 1995 total consumer debt (bad debt) was about half the annual income of an average family. In 2005 it was more than 105% ! The reason is that in 1995 we were very slowly coming out of a recession and our memories were vivid. Up to 2007 it was distant memory for most and with a boom in property prices we all seem wealthier and therefore can justify borrowing more!  However 2008 was a different story and the credit crisis is having ramifications worldwide. Cash now seems king and debt is bad. The problem is that with people being more cautious with their spending it is affecting business. This in turn affects employment and the spiral continues. and grows. 

Did you know that after 7 years of paying a 25 year $100,000 Home Loan at 8 % you would still owe $88,211.

As at 2005 Australian's owed more than $26 Billion dollars on credit card debt alone! No wonder the Banks continually make strong profits.  

The only GOOD debt is debt on items that make you money - consumer debt is BAD debt.

Consume! Consume! Consume! Spend! Spend! Spend! Want! Want! Want! And then want some more! Bigger and Better! Newer and Cleaner! Faster and Leaner! Oh what a feeling!