It's not just the Debt from buying a house.It's the use of the house equity to borrow for other things especially consumer items from cars to holidays.
People see the lower interest rate comparitely to other Loans and think that's the way to go. They don't realise that the 'lower' interest is for 25 Years to repay.Long after the consumer goods are Junk,they're still paying Interest.
I like to think of using Bankcard to pay for Meals. One's cells 'turnover' every 7 years and yet you can still be paying off their 'sustenance'/feeding years after they've 'changed' especially only Minimum Paying Bankcard.
Anyhow,it's not so much the Middle Class getting Bankrupted by straight House Debt but by 'tacking' on other things even Investor Houses onto their initial Debt. A new car is a Once in a Lifetime Experience.Not a Must Have every 3 years.
Ya don't know what's happening,Do you Mr Jones?-Bob Dylan.
