`The American Way` - credit card debt `has become normal`

By Nicholas Boyle

Researchers at Oregon State University have found that younger Americans are being encouraged to use credit cards and take on debt by their parents, upi.com reports.

Americans spent 9.3% of their income servicing their debt in 2008, and in 2010, almost a quarter (24%) of U.S. homes had an `upside-down` mortgage debt.

The study found that although consumers know they should `limit their debt`, they take on considerable amounts of it because doing so `has become normal` - or, as one participant stated, "the American way".

Some of the younger participants in the study said they didn`t want to take on debt, but felt they had to in order to pay for cars and future homes. Most of the younger participants said they were encouraged to have credit cards by their parents, and began taking on debt at a much younger age than those aged over 50 did.

A spokesperson at Think Money commented: "While taking on debt doesn`t have to be a problem, it`s worrying that people feel like it is the `norm`.

"We would advise anyone - in any country - who has taken on debt and is worried about their ability to repay it to seek professional debt advice without delay."

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