By Michelle Singletary
Sunday, March 30, 2008

There is no question that the federal government, plus many lenders and financial professionals, must shoulder a lot of the blame for our current economic crisis.

But many of the individuals who are overloaded with debt need to take responsibility for their bad choices, too. Take credit card debt, for example. Certainly there has been a tremendous push -- for decades -- by financial institutions to get people to view credit cards as indispensable.

And consumers gladly went along, with no complaint, using other people's money until life's hardships -- a job loss, illness or divorce -- got in the way and they could no longer pay today for what they long since had purchased.

In a recent online discussion, my guest was Stuart Vyse, author of "Going Broke: Why Americans Can't Hold On to Their Money," which was the March pick for the Color of Money Book Club. Vyse joined me to discuss why so many people can't save. Here's a partial transcript of that chat:

Q Do you think past generations had more discipline than we do, fewer opportunities to get into debt, or both?

A Vyse: I think we mostly face greater temptations today. Earlier generations did not have to contend with Internet shopping, credit cards that are widely available, catalogues combined with 800 numbers, and a consumer economy that depends on everybody spending. At the same time, saving has gone out of fashion. The current generation has not acquired the habit.

Do you think that Americans will be better able to "hold on to their money" in the future?

Vyse: I think future generations will be able to do better only if they begin to think differently about the things they want. They will need to think more about the value of money in the bank and activities that do not cost money. If future generations continue to watch lots of TV and continue to want the things they see on the screen, they will have trouble. But many of the best things in life don't cost money.

Why do you think it is so easy to slide into credit card debt?

Vyse: Credit cards have the wonderful and dangerous quality of feeling like free money. With the card you can buy things you can't afford and put the pain of payment off into the future. Furthermore, we tend to think very optimistically about the future. We say: "It will be okay. I will be able to pay the bill when the time comes." But we forget that things can and often do go wrong. Other expenses crop up that we don't anticipate. Before you know it, you are in trouble.

Singletary: Vyse hits it right on the head. Plastic separates us from the pain of paying with cash. I often ask people if they would withdraw $3,000 or $4,000 or $5,000 in cash to pay for a big-screen TV, furniture, etc. They cringe thinking about all that cash. It's hard to spend the cash, easy to put down the plastic card.

How can I keep money and save it even though I want something really bad?

Singletary: Do this for me, today, after class but today. Make a list of the things you really want in the future -- maybe a car, or helping your mom and dad pay for your college education. A trip. In other words, make a list of the things that really matter. And every time you want to spend on candy or something not really worthwhile, pull out that list. That's what I do. I keep my priorities in mind when I'm tempted to spend.

How can America get past this culture of consumerism? And I'm not throwing stones. Though I have no consumer debt, I've only recently started saving. There are examples everywhere, from housing crises to the wider advertisements of payday-advance loans to the introduction of even more eight-cylinder or otherwise high-horsepower, gas-guzzling automobiles.

Vyse: It is going to be difficult to throw off the chains of consumerism. Much of the economy depends on it. But it is also clear that, with so many people in debt and barely making ends meet, millions of citizens are paying dearly. Limits on advertising and reasonable limits on credit would help. Also, it is very important that we begin to teach the value of saving and living within one's means. Being in debt is becoming an accepted norm, but the anxiety and pain that it creates are often hidden. So many people would be much, much happier if they could live more simply and stay in the black.

¿ On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

¿ By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

¿ By e-mail:singletarym@washpost.com.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.