by Tricia
There’s a documentary out right now showing in select theaters that takes a deep look into the credit card culture. Danny Schechter, a former ABC News and CNN producer decided to to investigate the problem of debt in our society.
From the “In Debt We Trust” website, a statement from the filmmaker:
“This is a problem involving millions of people and billions of dollars yet it is downplayed and rarely discussed in all of its disastrous dimensions. It’s about a growing inequality that some experts fear will lead to a new 21st century serfdom. It’s about the transfer of wealth from working people into the vaults and accounts of a relatively small number of financial institutions and real estate interests. The lenders are profiting by charging usurious rates and doing so legally, in part, because they have mastered the art and science of marketing products and then manipulating media, politicians, and political institutions.” [via InDebtWeTrust.com]
Looking a little further into Danny Schecter, I found an interview that he did with Bankrate.com where he discussed debt. Here’s an excerpt that I found very interesting:
“Bankrate: Declaring bankruptcy or getting in too deep with payday lenders, as the soldiers in your film do, is one of the last dirty little secrets in American life.
Schechter: Yeah, you don’t trade notes with other people. It’s like, you fouled-up, basically. Like my filmmaker friend who went into bankruptcy. It could never happen to him. This guy had all the angles played. He was cocky, he was sure, he was certain, and then he got nailed big-time basically because of a confluence of things including a divorce where he had to disclose all his finances. Suddenly what seemed like a very secure lifestyle became a very insecure lifestyle.” [via Bankrate.com]
When I started this blog, I had no idea that debt was such a common problem. There are many of us out there dealing with debt and it is so encouraging that the media is bringing these struggles to light.
It does help greatly knowing that you are not alone.
Hi, Trish.
I just wanted to say that I found your website the other day, and I enjoy it very much, even though I am debt free.
You are doing really, really great. Keep it up!
Danielle
Schechter makes a good point about lenders and their savvy marketing. They refer to themselves as the “credit” industry when in fact to the borrower they are a “liability” industry. Money they lend to consumers (i.e. your outstanding credit card balance) is counted by Wall Street as their “asset”,
and hence makes them look good. Moreover, credit card issuers hire “credit card counseling” services, whose task is really to salvage the best deal possible from people who are in arrears. They’re not really out to do you a favor; having already profited from interest and penalties, they seek to eke
out what’s left through a renegotiated settlement. This is savvy marketing
— squeezing you out of your last dime and having you believe that they’re doing you a favor. There are better ways to eliminate creditor liabilities without negatively impacting your credit standing. A good place to start is with financial advisors who offer Financial Liability Portfolio Management
services.