Too much borrowing future business
I like the intro in this Financial Armageddon post.
When the government's cash-for-clunkers scheme was introduced, optimists claimed it would kick-start auto sales and get the sector moving again. In the end, the program turned out to be an ill-conceived quick fix that borrowed sales from the future and delayed a crucial industry restructuring in an economy that remains mired in a serious downturn.
The article goes on to parallel the retail sector borrow xmas sales early.
This is my household experience with this buy now pay later type of thing. A couple times I have taken advantage of buying something now where I do not have pay for 6 months or even a year. Ultimately when that bill comes due is puts significant pressure on the household finances and cuts or delays need to be made in other areas. It also tend to leave me feeling less on top of the household finances in the sense that what's available to spend is not so apparent.
I have choosen the path of avoiding those no interest delayed payment packages because managing household finances and having a clear picture of them is simply easier when everything is paid for either cash or the credit card which is paid off every month.
And, I always have the sense that I have borrow my future spending choices and I really do feel it in the household budget.
But really, debt is entirely borrowing future choices and right now the borrowing is so high there aren't many future choices...