Maxed Out
 

Renee's thread made me think of a movie I saw recently called Maxed Out. It is a documentary from 2005 before things here really tanked. It covers personal debt in the US and how people lose control in various situations or are taken advantage of. It is a bit depressing, but it is eye opening (and I work for a card company:o). I learned a lot of what not to do. They didn't make recomendations for what to do - I guess that is Suze Ormonds job.

People are doing good just to pay for their housing, food, car and gas. They're gonna pay the collateral things first - credit cards will just have to wait.

When the credit card companies raised the minimum payment a while ago I think they just shot themselves in the foot....people can't pay double what they were used to, and their interest rate goes up if they're late making it even more difficult to pay. They finally get fed up and just quit paying altogether.

What else can they do? :(

I first read Gingerapplegarth's book Wake Up and Smell the Money probably 15years ago and that and Ormonds books really changed my life.

Living simply and not falling prey to the urge to get more and more "stuff" has been very good to me especially in light of being diagnosed with MS. It was a huge relief not to have money worries on top of everything else.

You are so right Kelly :(.

The credit card companies didn't raise the minimum payment, the Federal Government did. This was so that you would eventually pay off the card if you made the minimum. I treat them as 'plastic cash'. If you can't pay it off this month, don't use it, pretty simple. Jules has it right.

Ahhh, if only it were that simple :). Three chronic illnesses in one family of four can do a lot of damage to your financial situation.

Whoever raised it - it's really irrelevant when you can't pay it! :rolleyes:

It's a good concept IF you have the extra money to make a doubled payment.

Like Joelle said - pretty hard to do when you've got illness and disability in the mix.

It doesn't help that CC companies are practically predators going after the young or indigent. When I was still in college, they were just beginning the all-out targeting by showing up on campuses to dazzle and amaze graduating seniors. It's flashy and exciting and has "newest pricey gadget" written all over it.

My niece, who is 10 got an application for a CC in the mail last Winter> Now, who's running that company?? Crazy!!!:confused:

DD18 has been getting those applications in the mail like crazy. I tell her to just tear it up/shred it as she doesn't make enough to have one and it would only get her in trouble.

Despite the GED stuff, she does want to go to college but doesn't want a cc or a loan. She wants to get out of college, find a job, and not worry about graduating in debt. Not a good way to start out.

Add to that, for every application that is turned down (pretty much inevitable at that age/income), it does a bad turn on your credit report.

I got offered a CC my freshman year in college. No income, but it didn't matter. I got it. Best decision I ever made. I started building credit and learning how to use it responsibly right from the start. Noone had to tell me not to charge out the wazoo. 19 years later, I still carry that same card. It's my only one. Thanks to that card, various loans and a mortgage, I've got sparkly credit. I don't blame CC companies for anything - it's a business decision. I don't have to like their practices, so I get around them by continuing to pay my balance in full every month.

For everyone who has managed to keep their heads above water - good for you!! For all of those who are struggling - you're not alone.

When my DH died I went from a two income household to a one income household....with all the same debts. Not easy. So....no, I did not overextend myself by charging up my credit cards. But, add MS to the mix and then waiting for LTD and SSDI. Not a real pretty picture.

If you can manage to pay all your balances in full every month then that's great!! Not everyone can do that. Doesn't mean we don't know how to manage our income. Just means there isn't enough income to manage.

You are right, Miss Kitty, there are many unanticipated circumstances that cause people to fall into debt. Unfortunately, these circumstances are the exception. Due to many of our circumstances it probably seems like the norm.

Most debt is primarily people living waaaay beyond their means. Many want to keep up with the neighbours and don't know how or don't care to save for what they want. I am amazed by how many people have to have the latest gadgets, handbags, shoes, jeans or whatever the stars are wearing and throw it on their credit cards to worry about it later. Who can really afford that stuff - $1,000+ handbags for everyday people?

If there were not so many defaulting on their credit cards with lame excused perhaps the companies would show more compasion to those that need it.