Overspending, austerity, euro flaws have pushed Greece to brink despite bailouts + MORE Jul 4th

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FRANKFURT – After two bailouts totalling 240 billion euros ($266 billion) and six years of depression, spending cuts and lost jobs, Greece teeters on the edge of collapse.
How did it come to this? Why couldn’t all that money and all that sacrifice turn around a country that makes up less than two per cent of the 19-country eurozone economy?
On Sunday the country will hold a referendum on whether or not to accept the tough creditor conditions attached to loans needed to avoid default and a banking collapse.
A “no” may lead to a chaotic departure from the shared euro currency. Even “yes” is no guarantee the creditors will agree to lend.
Ahead of the vote, here are seven short explanations of how Greece got into today’s mess:
THE CREDIT BINGE
There is no way around it: Greece engaged in a three-decades-long credit binge starting in the early 1980s, spending the money on plush government jobs for supporters of the country’s two major political parties — the centre-left PASOK and centre-right New Democracy…

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Once you allow recurring charges, they’re tough to turn off, but canceling a card will just risk damaging your credit score and won’t erase your obligation to pay

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