As long as salary is so small that people have to make choices what to buy, they buy more than they can afford. So for most people this problem exists. Only when people have enough salary to save some money, the problem is solved.
People always want more than they can afford, it is genetically.
They always want bigger car or house than needed, they always cross their financial limits.
Typical example is how Americans took higher loans when the value of their house theoretically went up a few years ago. When intrest rates started to raise again, and/or economy was in trouble, the US had the biggest number of forclosures by banks of houses that could not be paid off anymore. On the worst moment almost 4 million a year were under foreclosure. In Europe this is unthinkable of. The US lives on plastic money. 60% of all creditcards in the world are held by Americans although the US represents only 4.36% of the world population. On most cards there is a monthly pay off (average $609 a month) so they can even not pay back everything end of each month. In Europe people pay back end of each month the total debt.
View attachment 168948[/You can't rent a car without a credit card; you can with a debit card but you have to put down a huge deposit.
