Credit friend or foe

Many Americans look with some alarm at the national debt that keeps rising year after year but many are also living the same way in their families. Spending keeps rising faster than income and the difference is financed through debt accumulation. During the 1950’s and 60’s households lived differently. They avoided debt like the plague. They learned from their parents; frugality based on the necessity that came out of the depression. While it was common to borrow money for a home, other things were purchased with cash. People paid for daily expenses with cash. Many saved a small amount each week to cover the cost of upcoming Christmas presents. Some used the lay away plan. If they wanted an item, they had the store lay it away for them to pick up at some later date after they had saved the money to pay cash for it. When the breadwinner got a raise a part of that was set aside in long term savings. No one ever lived on overtime money. People went grocery shopping with a list and bought only what was on the list. All meals were home cooked and nothing was ever wasted. Any leftovers were used the following days. Many clothes were home made and were kept longer by taking care of things. Kids took lunch to school and saved the paper bags for reuse. Making home repairs was common as was the one car family. Sometimes a dad would take a part time job on Saturday not so they could buy something but so they could pay extra on the mortgage. Vacations were one day holidays in town not two-week trips across the country. Houses were less than 1,000 sq ft even though families were larger. All of this began to change with the introduction of the credit card which was sold as a convenience but was in fact a successful marketing ploy. Today there are many people who pay 20 plus percent interest on credit cards and just keep falling further debt. They cannot resist the next latest thing and thing of it as free when you just put it on the card.