In the 1950s, debt was unheard of. Credit cards were not in existence and most people believed that if you did not have the money to pay for it, either you bartered for it, or you simply did not buy it. Today, 50 years later, debt is at an all time high. More people filed bankruptcy in 2005 than the entire decade of the 1990s combined. Due to increased demand for credit cards, consumer debt is the cancer in our financial society. The available income is decreasing, so the supply is very low. The demand for more discretionary income is greater than it ever has been and the price for assistance has always been very high, until Primerica Financial Services came into existence. This company provides an opportunity to create supply, fulfill demand, and the price is right; it is complimentary.
An article in Success from Home magazine (July 2005) states that many of todays popular personal finance concepts have actually been Primericas mainstays for 30 years. Pay Yourself First, Dollar Cost Averaging, The Rule of 72, The High Cost of Waiting, and Buy Term and Invest the Difference these are all fundamental financial concepts that Primerica Representatives have shared with their clients since its inception in 1977. The founders of the company began a crusade to help middle-income families with the "Buy Term and Invest the Difference" philosophy. That philosophy encouraged families to purchase affordable term life insurance so they would have more money to invest in their family's future. This creates a supply of discretionary income for families who are in desperate need of it.
Why is there so much demand for Primericas financial solutions? Todays families have financial problems. The Wall Street Journal wrote an article in July of 2000 that states household borrowing has risen almost 60% to $6.5 trillion in the past five years. As well, despite an unprecedented economic boom, more than half of Americans are worried about having enough money for retirement, says USA Today (2000, April). The demand for sound financial advice is astounding. People know they need financial assistance, but they do not know where to go for the advice.
David C. Colander (2004) writes that anythingexcept the price of the good itselfthat affects demand (and many things do) is a shift factor. While economists agree these shift factors are important, they believe that no shift factor influences how much is demanded as...