Many consumers in America have substantial debt. In the average case a consumer has 1.5 times annual earnings in short-term debt; credit cards and car payments. This is frightful as many Americans if they lose their jobs they will be out of cash to live within 2.3 months. In a wise America citizens would have at bare minimum 10 times their monthly income in savings and should be living under their means and income level to provide for savings for the future.

Debt is a choice and seems to appeal to those who find themselves wanting instant gratification. Some argue that the cost of living is so high, that they remain in debt just to live. Yet in really looking at the situation the consumer is constantly rewarding themselves in advance with items, which are not completely necessary for critical life needs; food, water and shelter. One who is truly honest with themselves who grinds it out as they grow their savings will find that they will get further ahead in the long run, by living in this way. Yet those who choose to go into debt unnecessarily find themselves in a pattern of continual borrowing to keep them in a favorable lifestyle, without ever paying off the previous debt. This is a choice and one, which continues to haunt the average American. In fact they get to the point that they believe that they deserve these things simply for existing, regardless of their level of productivity.

Some say that the world of finance revolves around debt and usury. Yet we must understand that banking is a business. If you will be frugal with your money and respect it, limit your outflows and save, then you can lend money to others and make money on your investment. Some believe that banks cheat consumers and charge high rates violating usury laws, yet it is their money and no one is holding a gun to your head telling you to accumulate more debt? There are many who write articles on the exploitation of Hispanic and African or Black Americans and how they are cheated with higher interest rates. Yet, since when does anyone need a new no expense, no option spared 4-Wheel Drive V-8 SUV for driving around a city, what is wrong with a Dodge Neon or a used car out of the classified section?

We have seen the government go after Usury banking charges and file cases as a knee jerk reaction to those who complain. African Americans and Hispanic Americans have in fact been charged higher interest rates for such things as; cars, homes and credit cards. The lower end finance game, with pre-paid payroll loans secured by pink slips, hock shops and check cashing stores have been issues as well. Yet if we look at what people spend money on, we see the Hurricane Katrina refugees with $2,000 debit cards, spend money on expensive new shoes, nudie bar lap dances and alcohol. That is not exactly respecting the money given to them or helping themselves put their lives back together is it? This attitude and human innate tendency seems to be more of the problem then the usury debate or the exploitation of such folks, after all it is a choice.

We are all aware of the FTC cases and NYC Attorney General Elliot Spitzer cases on Hispanic and Black Lending practices on automobiles. However when researching this myself there is another side of this issue and one should be aware of the NADA North American Dealership Association for automobile business and their defense of their dealership members. You see the have to package those loans of those with questionable credit and sell them and indeed those who make poor choices will screw up their credit. When discussing things with bankers and their justifications of loan to loss ratios.

Although one who studies demographics and costs in various areas of our nation, we also see both sides of this issue. We might also compare the prices in Grocery stores in low income areas to the higher income areas where the produce is better and yet the price; they are lower? Go figure, pretty hard to deny this stuff; so we see the points of these complaints and the distrust from those poorer communities. Indeed since the poorer folks live in depressed real estate areas which are generally closer to railroad tracks and industrial distribution, the cost to get the goods to market rather than all the way into the suburbs ought to be much cheaper and so the costs should be less right? Sure they should, but they are not.

Although such obvious issues do exist bankers do have an obligation to limit their risk and lend with a level head. Banking is a business and when someone does not pay back those loans or makes late payments, there are costs to the banks and such fall-out rates do affect the car dealership or credit card company and their standing with their money sources. Bankers say they are risk adverse and although one could argue it is not their money or that they will loan billions to Mexico or large real estate projects at prime plus .5% and yet sock it to the local 50-year in community, hardware store or contractor; one must understand that the bank is in business and they are allowed to choose to whom they lend. Now those who wish to loan to airlines right now? Well you know, I would have to ask about the IQ levels? No government should dictate to whom a bank lends, who an insurance company insures or who cashes whose payroll checks.

In the business world we realize and it has been said that;