I love this old Saturday Night Live skit with Steve Martin called “Don’t Buy Stuff You Cannot Afford”:
An excerpt
If you can’t see the video, it starts out like this:
Wife: Ugh, I just can’t get these numbers to add up.
Husband: Like we’re never going to get out of this hole…
Wife: Credit card debt. Does it ever end?
Salesperson: Maybe I can help.
Husband: We sure could use it.
Wife: We’ve tried debt consolidation companies.
Husband: We’ve even taken out loans to help make payments.
Salesperson: Well, you’re not the only ones. Did you know that millions of Americans live with debt they cannot control? That’s why I developed this unique new program for managing your debt. It’s called, “Don’t Buy Stuff You Cannot Afford”.
(The salesperson holds up the book, and the video goes on from there.)
It’s a funny video because it’s all about pointing out the obvious. But what’s interesting about it to me is that no one in the audience laughs until the salesperson holds up the book.
So normal…
In other words, debt is so normal in our culture that a statement like “We’ve even taken out loans to help make payments” doesn’t strike anyone as funny or even unusual. Even though you can’t borrow your way out of debt.
It’s time to change that. And it starts with us.
I'm Jackie Beck, personal finance writer and creator of 
So, in 2006 debt was already this far out of control. And your right, no one caught onto the joke when Steve said they were taking loans to make payments on other loans. Yet, that is exactly was refi loans were in 2009.
Kinda sad when SNL makes fun of America and no one gets how serious the topic is.
I think it’s been out of control for a lot longer than that, but yes.
I remember that skit. It was shared on quite a few PF blogs at the time. There are still a lot of people that could learn from this skit.
Unfortunately, I think it’s going to be valid for some time…
Actually it is true that debt is a norm in our lives. When visiting my friends and family in Lithuania last fall, I heard a few times “But you guys live in debt in the US. It is a way of life for you.” Ummm…. What could I say to that? :)
Sadly, you’re right. But it doesn’t have to be that way :)
Good conversation! Don’t don’t how many times we faced that similar dialogue. In Hinduism (my sect) debt is not socially accepted and encouraged.
Do people still borrow money though? Or does the lack of social acceptance keep it to a bare minimum?
It is amazing how sometimes the simplest things are the most misunderstood. I think it is because people don’t like the answer they get. They don’t want to be told they can’t afford something so they buy it anyways.
That’s probably a big part of it, since consumer debt usually comes about due to people not being willing to wait.