The reasons we as Americans buy on credit varies, but without it most of us would
probably never be able to purchase necessities such as a home or automobile. The nation's economy depends on credit, the promise to pay later for goods and services used today; but along with consumer credit comes consumer debt. With the rise in telemarketing and commercializing in America it is no wonder why Americans feel the impulse to buy now, pay later. The most common form of consumer debt is installment debt, which is when a consumer borrows the money to purchase an item and agrees to repay the loan in equal installments over a fixed period of time.
Without installment debt most consumers could not afford to purchase items such
as a home. The truth of the matter is that we, as Americans, tend to want to purchase
more than we can afford to purchase when we want it. But, we can afford to pay it out,
over time, in fixed payments.
Mortgages, a debt ow...