Essay on How Debt Affects Americans - 822 Words

There is a widespread concern about rising levels of debt. Debt can become disastrous for those who live alone or those families who are already having problems with supporting their family. The people who might be struck by debt, they might have trouble recovering. Debt can cause Americans to lose their homes and stability they need to feed, and shelter their families. Although debt comes upon us Americans quickly, people can see debt as terrible thing to be stuck with. It has many disadvantages that can devastate to people. Within debt there are subtopics that can be debated. We have the poor and the people who are living in poverty. Poverty is seen as a big problem within America. â€Å"It is defined as the state of not having enough†¦show more content†¦Except it has become challenging to pay for the education those people want. â€Å"More than 3 quarters of Americans say it has become more difficult to pay for college in the past few years†(Marello). The Ameri can dream has become almost impossible for those who are in debt. With the cost of college increasing people turn to work so that they can have some sort of income to be able to support themselves. Even for those who move to America to achieve the American dream. Everyone is being affected by the rise in debt. â€Å"Households with high income generally have lower debt-to-income ratios†(Pressman). The rich may not become poor or fall into poverty because of the debt, but in the long run those people with high income would see a change in the money they have made and where it has gone. As people fall into debt they can see how it decreases the stability of living. â€Å"The refunds and subsidies are sometimes banked for savings towards a car, house, an education; but they are often needed immediately for overdue bills and large purchases†(Shipler 13). When people have overdue bills its hard for them to buy the necessities that they need to support themselves which makes it difficult to stay above the poverty line. â€Å" Many Americans have income above the poverty line, but because they must use a portion of their income to service their debt, they can not buy the goods and services needed to escape poverty†(Pressman). The poverty level isShow MoreRelatedFiscal Policy1391 Words   |  6 Pageswill address the how and why the U. S. budget deficits, budget surpluses, and debt affect different individuals and institutions. There is a wide array of individuals affected by fiscal policy, which include tax payers, future Social Security and Medicaid users. The unemployed individuals and University of Phoenix students will be affected by fiscal policy. 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