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Originally Posted by fiffer010
Since we are aware of the negative savings rate. What do you think is the cause of it?
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It's too easy to get credit. How can anybody save when they have 5 (or more) minimum payments to make every month? If people would just put $50 in a savings account, like ING, HSBC or Emigrant Direct every month, they would not even miss it after a few months. It's like deducting something from your paycheck; you never see it so you don't miss it. Everybody should put aside a year to shift their debt away from credit to savings.
I use credit cards very little. If I want to buy something big, I transfer money from ED (ING till May) to my bank then buy it with a debit card. If something unsuspected comes up I try to use American Express or, as a last resort, Visa.