Will it last?

[Russ]

Due to the recession, many folks have cut back on spending. As the economy picks up and people become employed, do you think once they get caught up, they will go back to their poor spending habits and go back to borrowing beyond their means?

[erinalexmom]

I will say that I am not sure that some of them will have a choice because even though many people got a job, it was less pay than the one they had before.
But I will say that it is mostly an additude that people have. I think a few people have had a change but I think most will go right back because there is the sense of entitilement that pervades our society.

[Ramona]

I hope not but it depends on whether they've learned a lesson(s) from the recession.

[druthb00]

Yeah, I do. I think it actually might be worse for awhile even. I think a lot of people will be tempted to go overboard and justify it with, "Well, I haven't spent any extra money in X amount of months so...why not?" I obviously hope that those who overextended themselves before won't do it again, but....I don't know. In any case, I don't think lenders will be loosening their purse strings on LOC's to those that are less than credit worthy anytime really soon...so maybe that will help.

[Momto5RN]

some will go back to poor habits - some will stay smart

[MomToTwoBoys]

The human nature is to adapt in times of crisis and to be more lenient when the crisis has passed. For those who have a head on their shoulders with a smart brain inside of it, they'll continue with the ways if it shows them that they'll prosper better than before.

But for the rest of the dumdums out there, it won't last.

[PATRICE]

I think a lot has to due with how long the people were without a job and how "deprived of stuff" they feel. The younger generation (20's & 30's) will have a tougher time with this because they have been given everything they wanted from the begining and still feel they are entitled to have everything they want.

I think the very young (those under 20) whose families have experienced the ecomonic uncertainty of the last 5 years, will have a different attitute toward money. I'm talking about the ones whose parents were making a good living, then lost their jobs, houses and most personal possessions, NOT the ones living on welfare prior to the economic mess.

I don't think that the lenders will be so free to lend as they have in the past. Even if we make it through this crisis, without much more backlash on the lenders, I think the govenrment may try to place guidelines/regulations for lending institutions in regards to qualifications for loans in the future.

I think we are in for a VERY, VERY long and bumpy road ahead and things never will be the same again in this country. We CANNOT rely on the government to solve all the financial problems created by the greedy elite Wallstreet fatcats. We are going to have to adjust to living with much less, without all of the comforts we have become accustomed to over the last 50 years.

[Lady_V]

do you think once they get caught up, they will go back to their poor spending habits and go back to borrowing beyond their means?

Not the smart ones!

Of course, there will be a splurge of some sort.. "Because I can" "Because I have done without for so long" "I owe it to my family".

What people splurge ON will vary greatly.

~ For me, any 'splurge' will be in the stockpiling area. A nice flat screen tv tastes awful, no matter how much ketchup you put on it!

[nodmicks]

The human nature is to adapt in times of crisis and to be more lenient when the crisis has passed. For those who have a head on their shoulders with a smart brain inside of it, they'll continue with the ways if it shows them that they'll prosper better than before.

But for the rest of the dumdums out there, it won't last.

I agree with exactly what you wrote!

[ravenmaniac]

We live in America the land of opportunity. As soon as we have the opportunity to spend money, we will spend it!

I do not mean to be cynical but economy is based on consumer spending. The problem is when people, this includes businesses, spend/lend beyond their means or on credit or businesses grow too fast and they do not have enough capital for the rough times. This leads us to believe our economy is growing then people get in over their heads and a recession starts.

So yes, lots of Americans will deserve or need all kinds of new goodies and vacations and such. As for me, I will not change my ways. I want my EF to grow and who knows? Maybe I'll get some of those goodies the spenders tire of and drop at the thrift store.

[brennasmom]

We are an "I want it and I want it now" society. So, I think people will probably go back to there old ways and may if go further to "reward" themselves for having to cut back.

Although, I hope I am wrong.

[craftypam]

It depends on how big of a lesson they learned.

A nice flat screen tv tastes awful, no matter how much ketchup you put on it!
Love this Lady V

[Debbie-cat]

I think many will go back to their old ways but the smart ones will continue to be careful.

[Contrary Housewife]

Well, we've been living like this for nearly 10 years now so I don't see it changing soon, for us personally.

I've got friends though who just don't get it. Told me yesterday they can't make their mortgage this month. And yet they are considering putting a new computer on credit....

DH works with a guy who can't make his utility bills each month. About the same paycheck, but we are debt free and he can't figure it out.

[pollypurebred39]

On one hand I'd like to think people have gained wisdom through this. On the other, if they have, it will make it far harder for us to get our feet back on solid ground. My DH's work is based on consumer spending. So as much as I hate to see people do stupid things with their money, this little voice in my head is screaming, "spend people, spend!" 3+ years is way too long to be without a steady income.