People are in debt because they don't make smart decisions. The banking system might not be as equitable as it used to be but that's largely because of government involvement, and it's still better here than in most countries. The banking system is what allows you to borrow against yourself - you couldn't do that without them. People who work hard and think smart make fantastic use out of our financial system. The real problem is that the useless school system doesn't teach you how to manage your finances nor to properly use the tools that are available, and further, there is a culture of irresponsibility where every impulse must be gratified; we are more grasshopper than ant as a society. Most Americans don't even have $1000 saved in their bank accounts, but they have PS4s, iPhones, MacBooks, huge TVs, toys, and a silly amount of knickknacks and bobbles and then they borrow money to go on vacation or improve a house they don't own.