Americans are using credit cards more than ever before. This widespread use has several effects, including normalization of using credit to pay for anything from a larger purchase such as a mattress to a purchase as small as a cup of coffee.
Subprime loans can look tempting but are often a bad idea in the long run. While taking out a subprime loan can seem the best way for some buyers to get the car they need, many find themselves falling into debt and missing payments. With subprime auto loan delinquencies on the rise in recent months, understanding these loans can help you avoid financial pitfalls.
The Philadelphia Inquirer reports that Lawrence Berger, associate professor of social work at the University of Wisconsin - Madison, conducted a research study on the health effects of excessive debt. He concluded that too much debt is bad for your health. Specifically, his research found that when the dollar amount of a person's debt increases by 10 percent, depressive symptoms increase by 14 percent. Depressive symptoms include not being able to shake the blues or having trouble eating or sleeping. This should not be a surprising result for those who are buried in bills. This study also found that there is a difference in how too many bills effect younger and older individuals. For adults from 51-64 years old, short term bills, such as credit card debt and payday loans have the greatest impact emotionally. On the other hand, young adults are more troubled by long-term debt, such as student loans.