Most people don't spend more than that on a car. The average price of a used car (what most people buy) is $14,375 [1].

The average savings rate in the USA is below 5% [2]. With a median household income of approx $50k [3], then we assume that approx. $2.5k is the average amount an average USA household can afford each year. With average savings of around $6k [3], that's over 5 1/2 years to "get out from under", not including loss of earning, no savings cushion, and not including interest payments.

[1] http://www.forbes.com/sites/jimgorzelany/2013/02/14/used-car... [2] http://money.stackexchange.com/questions/23113/how-many-week... [3] http://en.wikipedia.org/wiki/Household_income_in_the_United_...

Try living somewhere outside of the upper middle class. There is almost nobody I know who can get out of that kind of unexpected debt. "Most people" budget for a car, and don't buy a new one at 20. How about those people who take the bus?

http://well.blogs.nytimes.com/2009/06/04/medical-bills-cause...

Nearly two out of three bankruptcies stem from medical bills, and even people with health insurance face financial disaster if they experience a serious illness, a new study shows.

Among families who were bankrupted by illness, those with private insurance reported average medical bills of $17,749 compared to those who were uninsured, who faced an average of $26,971 in medical costs. Those who had health insurance but lost it in the course of their illness reported average medical bills of $22,568.