National Student Loan and Credit Report Debt Attorney

Is Debt a Life Necessity?

According to an article by, the lack of wage growth over the past six years has resulted in an “unprecedented boom of non-discretionary credit.” Simply living nowadays requires taking on debt.

The article points to automotive sales as one key example. Cars are becoming extremely expensive. The average car on the road is 11 years old – this points to an inability of consumers to purchase new cars. In response to that, we are seeing aggressive new financing for cars. Loans are reaching the longest terms in history. Loans with terms extending 73-84 months were about a quarter of all new vehicle loans in 2014 so far.

The article also discusses the rise in consumer credit, and how economists believe this indicates consumer confidence in the economy which will translate to real spending. However, the author believes this is false. He believes increased consumer spending is due to credit card underwriting standards being lowered to accelerate balance growth and the rise in food and energy prices and the impact that has on spending. All in all, this would mean consumers are not spending more in a way that generates the economy – that just have to take on more credit to live.

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If you are taking on more and more credit to afford the cost of living — sooner or later the interest is going to be too high to overcome. An attorney can likely help you eliminate your high-interest debt by negotiating for reduced balances with your creditors. This will get you off the high-interest treadmill and put your money toward actually living – not interest for the bank.

Author: Kevin Fallon McCarthy

Is Debt a Life Necessity? was last modified: November 11th, 2014 by Kevin Fallon McCarthy
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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.
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