Huge Holiday Debts on Credit Cards Put Americans at Risk of Bankruptcy

Yan Li, January 18, 2006

Shopping thought financing has become a part of the US culture. Despite increasing energy prices, the total spending of Americans during 2005 increased by 8.7 percent as compared with 2004, putting them heavily in debt. Prof. Robert D. Manning of Rochester Institute of Technology believes that credit cards have created this heavy debt mode of consumption. In contrast, the Chinese practice of 'excessively saving' leads to a totally different challenge for establishing a credit card system. Perhaps the two approaches should move closer together.


This story ran on on January 18, 2006.