What's the biggest cause of American's bankruptcies?

Question

Can the primary cause of American's personal bankruptcies be blamed on American's wasteful spending? Living beyond our means? Or is it HMO's not covering American's medical expenses?

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Answer 1

I would say both.  We need to make laws that stop insurance companies from discrimination.  The insurance companies were the cause for the high cost of medical, they need to be monitored, but remember, they are a big lobbyist.  

Answer 2

Credit cards and reckless spending is a big issue. People have too many credit cards. Some credit cards have extremely unfavorable rates and excessive service charges. Then people max out these credit cards buying things they really don't need. Remember, going to the mall is a pastime in America. Banks and credit card companies push their cards so much that even your dog can get a pre-approved credit card.

Another big factor is the banks and the questionable, almost fraudulent mortgages that they gave to people that shouldn't have bought houses in the first place. That's why we have the subprime mortgage issues that we have in America.

And of course there are the ever-rising  health-insurance costs and college tuitions. These institutions are immune from inflation. Every year, like clockwork 15% increases in these costs.

Answer 3

I think that people get in debt over two things medical and credit cards.

Answer 4

Wanting too much , too soon..

Living beyond means...

Bankruptcies because of meds, is probably 1-2 %

Answer 5

When for a few years, credit was so easy to get, people who in another decade would've been refused a credit card or a home loan were approved. Especially credit card and ARMs. Now that overtime is gone, raises are on hold and interest rates are climbing, people can no longer afford to pay for homes bigger than they needed, and credit purchases they could have saved for and bought.

It's the "I, me, mine" mentality- you are entitled to get everything you want. I live in a 60 year old, 900 sq ft house. The rain doesn't fall on my head, and heating/AC bills are very reasonable. I can afford, but don't NEED a $200,000 house.

We have to start thinking "sufficient", not grand. Keep a car longer. Save for what you want. You don't need new clothes (made in China) every week. Or a $4 coffee every morning.

Americans have to re-learn to live within their means now that the economy is faltering and credit is tough to come by.

Answer 6

Has nothing to do with HMO's but you are correct when it is our living beyond our means.  Then hoping the government will bale them out.

Answer 7

All of the above.  You forgot greed.

Answer 8

People living way above their means, it has nothing to do with medical expenses, even when maybe some use it as an excuse....