We just finished watching Maxed Out, the recent documentary about the viperous evils of the credit industry. We agree with the basic premise: Underinformed debtors are getting taking advantage of. And the stories are horrific, with three different people driven to suicide because of debt. The doc does a good job of outlining the links from debtor, to bank, to debt collector, to government representatives. It’s a nasty apparatus.
However, we found ourselves growing annoyed at the lack of appreciation for individual fiscal responsibility. At only one point that we can recall does one lady say something to the effect of, “yeah, I shoulda read the fine print.”
Yes, you should have. The bank is not going to manage your money for you. If you live beyond your means, you will some day lose control of your life. You spend other people’s money, they’re going to want it back. Yes, the credit industry should have stricter screening measures (though the prospect seems unlikely as it’s so much more profitable to not), but as long as you believe you are a victim of external circumstances, you will find yourself victimized.
Maxed Out is out on DVD, as well as Netflix’s “Watch Now.” — BEN POPKEN
Interesting discussion. I’d like to add $.02. on a different notion.
Often discounted when discussing the costs and benefits of credit cards is the incredible value of the system itself.
Visa and AMEX developed a system that allows me to:
Purchase anything I want on the web with some numbers,
Buy pretty much whatever I want with a piece of plastic in almost all stores without me having to carry cash,
Walk into stores anywhere in the world and purchase whatever I want there to.
This system is a convenience to the world that almost can’t be measured…..they have largely replaced cash.
Yes, they should, like all companies, treat people fairly (and I don’t think they always do), but let’s not forget the incedible benefits they have provided.
Well, then how about this: “Read what you’re signing, and when you come across a portion you don’t understand, just assume it’s describing a way they plan to screw you.”
Any terms that benefit you aren’t going to be buried in the fine print — they’re going to be splashed across the front of the brochure…
Even if you bother to read the fine print, the credit card company has a nasty habit of changing the rules…months down the line with an obscure update written on the same mailings as the dreaded “convenience checks” …the ones I normally shred the second I get them.
Also they love to change the rules when you get your credit card renewal automatically. When you phone in and activate, whatever they amend, you are now automatically contractually bound to.