Tuesday, May 20, 2008
Maxed Out, Documentary by Mark Mumma,
It does seem as though the american way is to go in debt now and pay later. Unlike our ancestors from yester-year we like to have everything now. Why earn the money to purchase expensive item A? Just put it on credit, and unlike your great grandparents you can have instant satisfaction now (they actually had to earn the money, put the work in first, and have a real value behind that dollar they were spending. How yesterday). I mean the credit card companies say you can pay for it, so you must be able to handle it right? Nah, they wouldn't allow you to bite off more than you can chew. If you want a real expose on how the rich keep getting richer while the poor continue to get poorer watch this movie. Here is just some of what you will see. * George W. Bush's top campaign contributor was MBNA (credit card company) who just so happened to write a Bush supported bill to re-write the bankruptcy laws. Want to know what this means for you? Watch the movie. * The credit card company target college students who have NO INCOME. Some of these kids get so far into credit card debt (beyond school debt) that they can't get themselves out. The movie tells the story of two such individuals who eventually commited suicide. These same credit card company however will not give credit cards to 18 and 19 years olds who hold jobs. Nope, they know they can pay their bills on time. * The people the credit card companies target the most are the working poor. They know they can only afford to make minimum payments. Therefore, they keep them enslaved to debt their entire life. They never have a chance to be anything other than poor. This movie tells a tale of a financial specialist who came to talk to exec's from a big credit company. She told them if they would stop giving credit to those who are "least likely to be able to pay their bills" they would cut their risk by over 50%. The CEO/President spoke up at that point and said, "But that's how we make all our money." Who are the one's who can't pay their bills? The working poor! The credit card companies target the poor, take advantage of them, and send them into financial ruin. * So how can these credit card companies afford to give credit to people they know can't pay? 1. They get minimum payments with inflated interest as long as they can. 2. Once the individual stops paying they tack on hugs fees to the debt up to 180 days in non-payment. After that they sell the debt (after inflated fees are added) to another company at a reduced rate. However, since they tripled the amount of your loan in fees they can sell that debt at a profit. * Companies that buy the dilinquent debt of credit card companies will absolutely harrass you. They will call you day and night. They will contact your family, your neighbor, and call your employer. They will garnish your wages. Once story had them calling a man who just lost his wife. She killed herself due to the debt she caused (and subsequently hid from) her family. The company that bought the debt told the family something along the lines, "If you would have payed more attention maybe she wouldn't be dead." That's a nice thing to come home from a funeral to. * The credit card system is made to make the rich richer, send the middle class into the poor house, and make the poor poorer. Both the Demoncrats and Repugnicans have sold out to the credit card companies. * You should watch this movie/documentary. Teach your children about the bondage of debt, and for God sake don't fall victim to their financial enslavement.