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Laura Rowley Money & Happiness

Laura Rowley, Money & Happiness

Deep in Debt, Deeper in Denial

by Laura Rowley

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Posted on Thursday, March 1, 2007, 12:00AM

"Maxed Out," a documentary that opens nationwide next week, examines the dark side of America's love affair with debt.

By turns humorous and heartbreaking, "Maxed Out" exposes the targeting techniques of credit card companies (the most profitable customers are broke); the gold rush mentality in the business of debt collection; an influential credit scoring industry riddled with errors; and the power of the credit card lobby at the highest levels of government. (MBNA, the biggest campaign contributor to President Bush, was behind the restrictive bankruptcy legislation of 2005.)

Submerged in Debt

"Maxed Out" is directed by filmmaker James Scurlock, a Wharton business school dropout and entrepreneur. Scurlock also wrote a book based on the film, which is due out next week from Scribner, a division of Simon & Schuster.

Scurlock says he started out hoping to do a lighthearted riff on consumer irresponsibility, but was shocked by what he found: College students and housewives committing suicide over their credit card debt, and the nation's biggest banks involved in predatory lending schemes.

In one case, the film shows Citigroup's lending arm foreclosing on a Mississippi shack owned by developmentally impaired woman and her severely retarded 44-year-old son after they were refinanced into a loan they couldn't afford.

"I wanted to know why people are living so close to the edge," says Scurlock. "A lot of people just haven't been able to keep pace with expenses like health care, education, and housing. Credit cards become the life raft that people don't even have to reach for -- they're just there." Scurlock points to new "medical" credit cards, for example, which invite consumers to dive deeper and deeper in debt.

Conservative Consumer Advocacy

This indictment of the industry comes from a 34-year-old who was voted "most conservative" by his business school peers at the University of Pennsylvania, and who worked on the election campaign for George H.W. Bush.

"It's not in anyone's interest to have a financial industry that behaves like a used-car dealership," says Scurlock. "I think it's conservative to expect that credit will be regulated in this country. People need to have to have a strong financial industry that's trusted -- and to the extent that that erodes, that's very bad for the country and the economy."

In the film, Scurlock interviews the two young founders of People First Recoveries, a Minnesota collections and debt purchasing firm, who purport to represent the "kinder, gentler" side of the debt collection business. And yet they describe themselves as "pirates" -- using swashbuckling techniques like calling neighbors and relatives to intimidate debtors into paying.

In another interview, Harvard law professor Elizabeth Warren recalls a presentation she did for financial services executives in which she discussed how many bankruptcies could be prevented simply by eliminating those customers on the financial edge. A member of the firm informed her that those consumers comprise the most profitable part of the business.

The Personal Accountability Gap

Unfortunately, Scurlock never directly addresses the personal-accountability aspect of debt in his film. I was hoping he would ask at least a few hard questions about the consumption choices that lead people into the red.

"A lot of people we talked to said, ‘Gee looking back at the level of debt, there should be a Mercedes or a Ferrari in my driveway, but I have nothing to show for it,'" Scurlock says. "Most Americans are very optimistic. They think things will always get better from here, they'll make more money, they won't have any emergencies. Credit has become so ingrained in the culture that so many people can't imagine living without it. Once you decide you're never going to be out of debt, you can afford anything."

Other than my mortgage, which is fixed for 30 years at a low interest rate, I don't do debt. No revolving credit card debt, no auto loans, no home equity borrowing. Would I like to bust out the back of my home and create a designer kitchen and family room? You bet. Am I going to sacrifice my children's college savings or retirement goals on the altar of my extreme makeover? No way.

I had the good luck to have wise parents born during the Depression, who drew a very clear line about debt. They taught me that you buy things you can afford -- not things on which you can afford a monthly payment. You don't shop for recreation. And the only thing you should borrow to buy is an appreciating asset that will very likely, over time, pay you back more than you put into it, such as a home.

Anything But Maxed Out

Here's my problem with taking on debt: I have a profound respect for the unknown. For instance, my husband and I work for ourselves. This is an excellent way to avoid ruthless bosses and layoffs. But if one of us were to get injured or become ill, it would be pretty hard to keep business hopping.

Meanwhile, I'm optimistic that if I work hard, my income will continue to rise. On the other hand, I have dozens of friends and acquaintances who, despite their hard work, were downsized or squeezed out after a merger, spent long periods unemployed, and/or returned to jobs that paid less. The rosy scenario of a steadily climbing income that peaks just before retirement is the stuff of economic models -- not the real life of the middle-income Americans I know.

Here's the other irony: Credit card companies market their products by claiming they offer you a world of choices -- take that dream vacation, buy the 60-inch television. But by steering completely clear of credit card debt and saving on a regular basis over time, I found myself with much richer options -- choices about how I would balance work with family, health, and friendship. That satisfaction is more enduring than anything I could have purchased with plastic.

Buying with Blinders On

Why, I asked Scurlock, don't people understand this? Why do so many consumers buy things on credit and then pay double for them over time? Why do they sacrifice what they want most in life for what they want this very second?

It's pretty simple, Scurlock says: "I think there's a lot of denial. Most people can't do the math. There is very little, if any, focus on the balance sheet side of the equation."

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  • Yahoo! Finance User - Tuesday, April 3, 2007, 6:38PM ET  Report Abuse

    • Overall: 5/5

    Debt is pretty simple, stay out of it. We need to all live within our means, have an emergency fund and save regularly. Do this and your life not only gets much easier, but much better.

  • Yahoo! Finance User - Tuesday, April 3, 2007, 6:06PM ET  Report Abuse

    • Overall: 4/5

    "Meanwhile, I'm optimistic that if I work hard, my income will continue to rise. On the other hand, I have dozens of friends and acquaintances who, despite their hard work, were downsized or squeezed out after a merger, spent long periods unemployed, and/or returned to jobs that paid less. The rosy scenario of a steadily climbing income that peaks just before retirement is the stuff of economic models -- not the real life of the middle-income Americans I know." The above quote by Laura really says a great deal about what are the actual incomes we earn over time and throughout are working life. This defines why many are in the financial situation they find themselves in. For every dollar you lose it takes two dollars to make it back. If you are borrowing this money to stay afloat to survive it takes 3 to 4 depending on how much you have to borrow and how fast you can pay it back to be in the same financial position as before.

  • teresa - Wednesday, March 28, 2007, 5:37PM ET  Report Abuse

    • Overall: 4/5

    I am currently stuggling with debt after being sick for three years (requiring a kidney transplant) and going through a divorce. I am greatful to have had the cards to charge my taxes on and not loss the house while I was out of work. I do wish we had never based our finances on 2 incomes. We "had" to buy a large house when my now-ex got a promotion because our previous, affordable did not even offer us a deduction. Thats kind of a trip when you have a 3000 tax bill because you bettered your self. OUr debt is mainly property taxes and med bills from when i was unable to work fulltime for 2 1/2 years. Prior to that-I was always opposed to credit-but it is difficult. My dining room table was a card table from wal mart for years because a dining set and chairs is at least 1000 and easily 3000. I agree with a previous post that the economy is based on credit-because they wouldnt sell many tables if they only took cash. Any what major retailer is without a credit card? Its a false economy.

  • LeticiaA - Wednesday, March 28, 2007, 3:06PM ET  Report Abuse

    • Overall: 3/5

    I believe the analyses here are very oversimplified. I got big into debt because I attended school for a total of 8 years, while being an immigrant, and afterwards never having a job that paid enough to even get by on a daily basis and pay the debts back fully. After years of old, trashy vehicles, traveling back to Europe to see my family only every 5 years, I had had it. So I added a new car to the years of student debt, and now go to see my family more often - on credit card, because it's still the only way I can pay for it! If I would get paid what I'm worth, there wouldn't be much of a problem here, and if a single person wouldn't be so "punished" living in the State of California, I'd have it pretty darn good! Even with the debt!

  • Yahoo! Finance User - Wednesday, March 28, 2007, 1:10PM ET  Report Abuse

    • Overall: 5/5

    great discussion. but i think what the experts are missing is that this economy is fueled on debt. if everyone waited to buy things when they had the cash, our entire economy would collapse. even owning a home is an instrument of debt - when you mortgage your home, the bank owns the home until you pay off the loan.

  • Yahoo! Finance User - Wednesday, March 28, 2007, 12:44PM ET  Report Abuse

    • Overall: 3/5

    If wages could keep up with the high cost of living, we might be able to live in that dream world where people don't get into debt. Having JUST ENOUGH for your needs is NOT ENOUGH because life and unexpected occurences constantly throw you off your budget. Over time, this accumulates. Eventually, it seems like having one credit card available is the answer. Well, one thing leads to another (and YES, much of it is due to the consumer, but I find the author's idealism a bit insulting, not everyone has had her opportunity and success) and before you know it the debt never goes down. Also, while it's easy to say that a house should be the only thing you owe on, you literally CANNOT build a sufficient credit score to get a decent, non-predatory loan without some type of credit that you have used and paid on, which is all the card companies need to reel you in and start robbing you. In the end, it is the corrupt practices of the credit card companies and debt collection agencies, in collusion with a corrupt US gov't, that is the real culprit, as far as things getting out of hand. Credit is given out WAY too easily, interest rates are ridiculous and should be capped at 10% AT MOST, and we are far too driven by consumption as a nation. It is often said that "the consumer is the backbone of the U.S. economy" and the president encourages us to "buy more". What else do you expect in such a horrible situation? When sales boom and the economy improves as a result, do you really think people are paying cash? What if we ALL stopped buying anything we couldn't pay cash for? I guarantee you that sales all over would decline by half, if not more. I am no economist, so I don't know what the result would be, but I imagine it would not be all good. In the end, the author is right, however, though she paints a far too simplistic, even moralistic picture. We are on very thin ice here and people's lives are literally being ruined. This is a time for massive public emergency measures, not time for big businesses that cheat people and engage in unsound economic practices to thrive. In lieu of that, I suggest you all DOWNSIZE YOURSELVES and take back your lives.

  • Judith - Tuesday, March 27, 2007, 5:53PM ET  Report Abuse

    • Overall: 5/5

    Scurlock is the only voice out there exposing the banking industry for its oppressive tactics on middle class citizens.I am grateful for his hard work to expose this racket. How can contracts be changed to whatever the bank wants and high interest rates and methods of calculation imposed on good hardworking/senior Americans who pay their bills on time yet are assessed oppressive interest rates. It is sad that no one is protecting us from those predators. Where are our consumer protection agencies? I am being crushed by these bank mergers and new minimum payments and 30% interest charged me - though my credit is perfect and my lifetime has always respected my obligations without ever being late for anything. Please, consumer agencies, please understand that there is a real message in this movie and real people need protection from these predators. And to those who wonder how one can accumulate so much debt, well, when oppressive interest rates are charged, it is never possible to pay enough to reduce the debt - it is a mathematical nightmare. I truly pray that consumer agencies and lawmakers will stand up to this oppressive banking regulators and give us Americans a chance to pay our bills with fair contracts, like the ones we signed up for before the mega mergers began.

  • Bames - Saturday, March 24, 2007, 12:41PM ET  Report Abuse

    • Overall: 2/5

    “…you buy things you can afford -- not things on which you can afford a monthly payment. You don't shop for recreation. And the only thing you should borrow to buy is an appreciating asset that will very likely, over time, pay you back more than you put into it, such as a home.” Unfortunately, this newfangled “Global Economy” has forced us to become dependant on debt to improve our quality of life, since real wages have not increased sufficiently to keep up with *REAL* inflation. Our asset-based economy (which supports the Japanese and Chinese economy) needs debt to function and a large amount of debt for it grow. If we, as a society, were to curtail our level of purchasing to the conservative level that you suggest, our nation’s economy, the Japanese economy and the Chinese economy would implode, and then things would get reeeally ugly.

  • Yahoo! Finance User - Friday, March 16, 2007, 2:38PM ET  Report Abuse

    • Overall: 5/5

    As you stated, it's all about personal responsibility. Personally, I'll be out of debt, except for my modest home, in 2 months and have over $10,000 in savings. I previously had as much as $25,000 in credit card debt along with a car loan. No bankruptcy, just realizing the true cost of immediate gratification and doing something about it.

  • jtlang72 - Friday, March 16, 2007, 12:28AM ET  Report Abuse

    • Overall: 4/5

    I watched the ABC interview with James Scurlock and found it ironic that the ad preceding the interview was for a "Chase" credit card commercial. Credit card companies really have the "hooks" in everywhere. Thanks for the good article.

  • Yahoo! Finance User - Saturday, March 10, 2007, 6:35PM ET  Report Abuse

    • Overall: 5/5

    Kudos to an excellent article on personal responsibility! Yet, as a teacher who does try to educate students about financial responsibility, I know that it's an upward battle against "Barbie-comes with a Visa card!" targetted towards children who haven't even learned basic addition yet. I agree that consumers need to make better decisions, but I also believe that our society needs to educate our citizens. What's there to counterbalance shopping-crazed Barbie in the minds of young children? We have the book "It's a Habit Sammy Rabbit!" from independent author Sam Renick and as the children get older, we have frugal101.com for the college age students. We have all sorts of resources for adults, but by then, the spending habit is deeply ingrained. I shudder to imagine what our children will be like as consumers in another decade or so...they don't have parents raised during the Depression like Laura does...they have parents who have negative 1% savings.

  • FrankM - Saturday, March 10, 2007, 6:27AM ET  Report Abuse

    • Overall: 5/5

    Thanks for your article Ms. Rowley - it's obvious there is plenty of demand for your message of common sense and personal responsibility. I have spent past three years as a financial planner who focused on helping regular people turn around their financial lives and nothing was a bigger problem than the debt alligator. In my experience, most people know conceptually what to do, but it is so easy for them to make excuses, follow the jonese's...plus they have built HABITS / lifestyles that are as addicitive as any other addictive behaviors can be (drugs, sex, any sort of emotional control issues)...and they simply haven't built the good habits (yet) to turn it around, cut debt and behave more responsibly. In my view solving this situation for adults is mainly a behavioral issue, secondarily education... though education at the High School or Junior High School could be a critical first step to cut this problem off at the knees for future generations...and of course its an unfortunate "opportunity lost" that this movie, despite the factual accuracies, will only feed the excuse / blaming machine presently pervading our culture...and making the problem easier to excuse, harder to solve at the individual "kitchen table" levels...

  • Rick T - Friday, March 9, 2007, 5:15PM ET  Report Abuse

    • Overall: 5/5

    People do not realize how strong the credit card lobby is and what kinds of laws are passed in their favor everyday. It is time to stand up and just say no to these people. If you cannot do it on your own...seek help!

  • Scott - Thursday, March 8, 2007, 10:47PM ET  Report Abuse

    • Overall: 4/5

    This article is very good indeed. A lot of people are psychologically weak and that is the only reason why people are spending the money that they do not have. I agree with the fellows who mentioned that there must be a personal finance class at eight grade. Even that may be too late because every kid appear to have a cell phone by the time they are in the middle school. I have an idea. Put age restrictions on credit card applications? I know you all said whaaat? www.quotebargains.com

  • Robert P - Thursday, March 8, 2007, 2:35PM ET  Report Abuse

    • Overall: 3/5

    I have often wondered why personal finance is not taught in high schools and I think I know why now. The credit card companies have successfully lobbied the government to prevent this just like they successfully lobbied making the declaration of bankrupcy harder.

  • Yahoo! Finance User - Thursday, March 8, 2007, 8:10AM ET  Report Abuse

    • Overall: 5/5

    I think there should be a basic finance/credit class in high school. True story: A young man I know graduated from a very prestigious (and very expensive) local college. I'm not sure of the actual name of his degree (maybe finance or economics) but his goal is to be a financial planner. However, he doesn't know how a credit card works! He thinks (or thought) that you only paid interest on the amount you paid each month. In other words, if you have $5000 in debt and paid $25 that month, you would only pay interest on that $25! His sister opened up a store credit card at something like 25% interest to pay for some jewelry. She _declined_ the 12 month interest free loan because she figured she only needed 4 months to pay off the credit card. Except she doesn't think that it actually IS a credit card becuase it doesn't have the "VISA" logo on it.

  • David Y - Thursday, March 8, 2007, 4:05AM ET  Report Abuse

    • Overall: 5/5

    What a great article, ... but what does one do when they are "in debt" due to credit cards and then a major health care crisis occurs, which then ended my job (after only 6 months of disability) after 28 yrs of service with a major fincl services firm? Within a year, I am not going to be able to get health insurance due to pre-existing conditions. In the meantime, one creditor, Chase, has decided to raise my APR to 34% within the last week for my $15000 credit card debt, even with no late payments or without reason except "I am a financial risk, they tell me."!! I have no choice but to declare bankrputcy or maybe just "end it all". America is in a major financial crisis and healthcare crisis. This is ESPECIALLY true for people in my age bracket of 50-65 years of age. Each day I have "HOPE" that something good will happen, but in the meantime, my "gun is loaded", just in case. God bless.

  • Yahoo! Finance User - Thursday, March 8, 2007, 12:38AM ET  Report Abuse

    • Overall: 5/5

    This article was excellent and points to the need for the introduction of mandatory credit (money management) courses beginning at the junior high school level. This also points to the need for regulation of the credit card and credit reporting industries. Of course, this will never happen because it is not in the interests of the power brokers of industry and government to have a well educated consumer and a well-heeled industry. There is also another factor that needs to be considered here. The credit industry came into being at a time when most Americans worked in manufacturing jobs that they expected to retire from after 25 years or so of steady employment. Today, that landscape has changed but the basic credit lending practices have not. For example, years ago if you were on the job for 5 years, creditors thought you were stable and a good risk to lend money to as they expected you to keep that job for 20 more years. Today, creditors should look at 5 years on the job as a sign that the person is about to be downsized or layed off and should be reluctant to lend. Today the best risks might just be those that are just re-entering the job market after a lay off - at least, they might have at least 4 or 5 years employment before they get the axe again! My only other comment is that Mr. Scurlock should have titled the documentary "Capitialism Gone Wild" or "I got a Broke Back from my Mountain of Debt" - Maxed Out - that just sounds like the usual talk around the water cooler.

  • Salvador - Thursday, March 8, 2007, 12:03AM ET  Report Abuse

    • Overall: 4/5

    No point in looking at the past, mostly when still in debt well above average than most americans (definately not something to be proud about), I am longing for the day that all my credit cards will be zeroed out, not maxed out, but zero balance. Being able to use something now before even paying a penny sure is appealing to anyone, but it is definitely better to wait, I am trying to teach my two children the same lesson. You might think that you can pay things off faster than originally planed, but somehow, time keeps passing and in tight times you continue to use the plastic and the interest you pay in the end is no joke. I was laid off of work back in my younger days and I use to take out money and "pay my self" I use to say, I am not saying that anymore. Learn to save now, invest, and you will be better off, learn about finances, it's the way to go.

  • wiseacre - Wednesday, March 7, 2007, 11:48PM ET  Report Abuse

    • Overall: 5/5

    Reasonably priced homes, reasonably priced autos, reasonably priced school loans, absolute medical necessity are understandable but not all at once. You can't 'keep up with the Joneses' - they'll just refinance & get ahead again. Who cares what the Joneses have anyway?

  • Yahoo! Finance User - Wednesday, March 7, 2007, 11:25PM ET  Report Abuse

    • Overall: 5/5

    Wish I had been wiser in the early years about debt accumulation. Now my husband and I are trying to pay off credit card debt so we can retire without that hanging over our heads. Sometimes I wish I had never heard of or applied for a credit card.

  • Yahoo! Finance User - Wednesday, March 7, 2007, 10:42PM ET  Report Abuse

    • Overall: 3/5

    having read a number of posts, I have a few things to add or question... 1) a number of people such as Bethbiz hold up their 100k student loans from college as part of their overall debt load. I will assume that their choice of college was driven by that school's reputation for a certain field. If it wasn't, what had you say NO to going to a state university??? State universities often provide an excellent education at a considerably lower cost. If enough high school seniors in this country said NO to the overpriced private schools for a few years, those schools might just wise up and DROP the cost of tuition. These are for profit institutions as susceptible to the vagaries of the marketplace, after all. 2) Stated a few times in other posts but not enough attention paid to it: the importance of being on the same page as your spouse when it comes to financial matters. I've been in significant debt twice: once as a single, and the other with a since-divorced spouse. We had some similarities in money matters but not this big one: maintaining a budget over the long haul. Too late for us, spouse "got religion" after working in the financial services industry for a while and hearing the horror stories. Needless to say, I will not get married again w/o a legal agreement over cc debt. Money is an uncomfortable topic for most couples before marriage. It needs to be addressed & discussed well before the wedding day. We've all heard how money is often one of the biggest sources of marital strife, haven't we? 3) people need to self-educate themselves as much as possible. Your intelligence is one of your greatest tools in gaining and maintaining your finances. Keeping an eyes on your cc statements, the anonymous dull looking "changes in your cardmember agreement" slip-ins, changes to the tax law, etc are all the real "keeping up with the Joneses" In this area, ignorance ain't bliss but knowledge is POWER!!!!

  • Yahoo! Finance User - Wednesday, March 7, 2007, 10:12PM ET  Report Abuse

    • Overall: 4/5

    WOW - 500%. I'm glad I don't live in Virginia. What type of mean spirited politicians do you have that would allow that, or is your governor just that insensitive to your citizens, or maybe that indebted to the credit companies? As for Josh who posted on Monday, March 5, 2007, 5:38PM ET and couldn't relate to financial hardship, I just pray that you never have a child or spouse who gets cancer and despite you having great insurance you'd have spend every penny to help them stay alive. I'm a lawyer and own my own successful practice, but cancer wiped our family out financially. Its not just ignornant that get into debt problems (we refinanced our home to pay to help my wife beat the disease), but hard working people who run into a problem, be it cancer, Katrina, job layoffs, death, etc. What you didn't read in this article was a study through Harvard found that over 50% of bankruptcies are casued by medical debt - not just the medicine and doctors, but the loss of income while sick. Fix the predatory lending and credit industry, and fix the abuses by malpractice lawyers against doctors, and you'd probably find more people being able to afford their credit and medical debt.

  • Yahoo! Finance User - Wednesday, March 7, 2007, 9:52PM ET  Report Abuse

    • Overall: 3/5

    A fair article, however it fails to focus, in depth, on the lack of accountability that is placed on the credit industry. Why are they permitted to send solicitations to minors by targeting high school students? Why is the credit industry permitted (at least in Virginia) to charge 500% APR or more (NOT a typo - YES FIVE HUNDRED PERCENT) "payday loans" preying on the elderly and poor. Maybe articles like this will help the compassionate politicians balance the abuses of the credit industry against those who are accused of abusing credit, when in fact most were able to pay the bills until something major occured and they weren't able to make payments in full. I have known many people who have encountered credit card companies refusing to work with them. Instead they collect their over limit and late fees. I knew an 80 plus year old man who had a $300 credit card with Cap One and he couldn't make the full minimum payment (he was about $5 a month short - or no food as he only made about $600 on Soc Sec.) Cap One wouldn't work with him and kept charging him over limit fees and late fees. I'm sure he was used in a statistic of irresponsible debtors, when in fact all he asked for was lower monthly fee, and he'd pay the full amount off. They refused.

  • Yahoo! Finance User - Wednesday, March 7, 2007, 9:47PM ET  Report Abuse

    • Overall: 5/5

    GOOD ARTICLE, opened my eyes a little more about America and credit debt. Its something I have struggled with for several years, but I've come to the realization that money management starts at HOME. My parents never talked to me about how to manage the money I earned or about credit cards in general. College came and I got my first credit card with hardly any experience money handling. That's where it began. Its taken several HARD years to learn any skills in money management and not to impulse buy. Now I do not have any active credit cards. I was drowning in all those financial fees credit cards tack on to your debt. I deal only in cash or checking account, and finally the balances are going down. At this point its gonig to take another 2-3 years to be debt free, but when that day comes it will be a GREAT feeling. Its been a hard lesson but a lesson well learned.

  • Steve C - Wednesday, March 7, 2007, 9:46PM ET  Report Abuse

    • Overall: 5/5

    You hit the nail on the head! I have been living this for over 20 years now. I don't carry vredit cards and only borrow when I need a new vehicle. My house is close to being paid for, never, ever thought of borrowing money on it! FICA score and credit cards are evil in my opinion, and if I can't get it with cash, then I don't get it. I don't need to keep up with "Jones's", but with saving to buy, I live just as comfortable as they do. Great article!!

  • Jamaican Mon; Bobby - Wednesday, March 7, 2007, 9:40PM ET  Report Abuse

    • Overall: 4/5

    Excellent article, and oh so close to home. But to add another answer to the closing question: why don't people understand the issue with credit card debts? It's not that some of us don't understand the math....we do....it's just that the "buy now, pay later" factor is such an "immediate reward" that we don't WANT to think about the math. There are other factors that plays into this as well...we could die tomorrow, so why wait to enjoy life; our life insurance is more than enough to cover our debts (event though we might live to a point where it might not); we don't have kids to worry about, so we can "deal" with "losing it all" (based on our upbringing; etc. I'm not saying these are "good reasons"; I'm just pointing out other reasons why some of us WON'T learn to control our credit card debt.....sad, I know, but so true.

  • BethNew - Wednesday, March 7, 2007, 9:29PM ET  Report Abuse

    • Overall: 5/5

    I am about 7,300.00 in the hole and still working my way out. I truly believe that middle and high school should teach "comsumer" math so students can learn the evils of credit cards before they college. And the colleges themselves should ban the companies from being on the campuses.

  • Yahoo! Finance User - Wednesday, March 7, 2007, 9:25PM ET  Report Abuse

    • Overall: 5/5

    Recently, I was in $27,000 of credit card debt because of an extended period of unemployment. I have cut that amount by 67% and have the goal of becoming debt-free within 4 years. It is amazing how paying off credit card debt maximizes your choices and improves your credit score!

  • Yahoo! Finance User - Wednesday, March 7, 2007, 9:19PM ET  Report Abuse

    • Overall: 5/5

    I had 55 credit cards. I now owe 260.000 dollars. I lost everthing and am still losing as we speak. I thought I was on top of the world. I should of never aquired that much open credit. It wasn't all my fault. It was way too easy. O well. Just a thought. God Bless.

Showing comments 6-35 of 244<< PreviousNext >>
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