Three observations:
For every person I know that was stupid, I know people who were whacked by medical or other bills they simply couldn't pay or barely pay, they have no savings; not because they bought a fancy TV but because they ended up in the hospital or with a medical condition requiring medications.
On the "who will rent after all the evictions" question, I saw this in both Colorado and more recently in Ireland - it is simply multinational - "vulture funds" buy them up and either sit on them or rent them out at inflated prices to those with money - there are always some people.
Ireland really has a problem with this, because while about 15 years ago I remember a silly statement about "Ireland will just have join the other 'good Europeans' and 'rent like everybody else," Ireland now has a massive problem.
The problem: Their entire retirement system, especially the small Old Age Pension that anyone over a certain age can get if they are in danger of poverty (but also the private pension plans) is based on the majority of people owning a home.
There is no money for rent, so the Old Age pension will either have to be tripled or more in some markets, and/or massive amounts of public housing will have to be built or bought back at full price from the vulture funds.
As it is, Ireland, where for historical reasons having a roof over your head is pretty much a human right (after the famine when people were thrown into the streets to starve, off the land they had farmed for hundreds of years); there is already a severe housing shortage.
And since any resident (especially citizens) can go to a police station and sleep (especially those with kids) and pictures of Mom's with six kids on plastic chairs are not good "press" and the police are saying they can't do their jobs if this continues - well, it looks like stage one is taxpayer money used to re-buy the rental houses from the vulture funds and banks the tax-payers bailed out in 2010.
Something similar is likely to happen in the US, and I can predict that if there are massive evictions in Winter in the USA then the migration will make the "migration" from Oklahoma and Arkansas to the West Coast in the 1930s Dustbowl look pretty small in comparison.
People will flee South and West, in huge numbers in cars, buses, trains, and even on bikes or on foot. Suddenly homeless working class, middle class and even really poor people may be destitute but not always stupid.