Comments on: Debtor Personality

By: BL

BL — Mon, 04 Aug 2008 16:58:40 +0000

I blame the banks and credit card companies for making us a debtor nation. Debt is like nicotine. They are both highly addictive and people will do extreme things to get more. Banks and Credit Card companies should be stopped from advertising their version of crack, just like cigarette companies have been stopped from advertising.

Take our son for example. He was working a part time job in a grocery store making about $9.00 per hour. Unfortunately he already had a small credit card from a certain Canadian “Tire” branded store, which was maexed out. He then made a Royal mistake of applying for another credit card at the largest bank in Canada. This bank gave him a $10,000 credit limit.

Now tell me how it is possible to get a $10,000 limit on a part time $9.00 per hour wage? Needless to say, he maxed out the card in about a year and has been paying the interest ever since - for about 5 years now.

The reason the banks allow this crookery is that they now have a great money making “ASSET” in the shape of our son.

They are deceptive and hugely seductive in their advertising methods and this needs to be stopped.

By: Melaniesd

Melaniesd — Fri, 25 Jul 2008 01:40:32 +0000

No offense intended Rebecca, I’m just in my early 30’s myself. Good for you for starting off your career on the right track. I can totally relate to the “My parents, on the other hand”.

I don’t blame the younger people I have worked with, I blame the parents for handing everything over to them and not teaching them the value of hard work and earning things.

By: Rebecca

Rebecca — Fri, 25 Jul 2008 00:06:51 +0000

As a counterexample to the “young people these days” comments, I just started my first full-time job recently after obtaining an MSc degree, I’m NOT going into debt, I’m keeping track of my expenses, and I’m saving for emergencies and retirement. My parents, on the other hand…let’s not even go there. I’ve met plenty of older adults with entitlement issues, so please let’s not pretend that my generation invented instant gratification.

By: Melaniesd

Melaniesd — Thu, 24 Jul 2008 14:20:31 +0000

Tracy J: You are so right about todays youth expecting everything. It’s a real challenge on the east coast as well to find good quality employees. Everyone expects good jobs to be handed to them and not to work hard to get these positions.
My friend has teenage children and we were discussing this issue. She said the kids now tell the employers when they will work instead of taking the shifts they are scheduled.
We notice that many of the younger people who are hired by our company have very little work ethic. They call in sick because they don’t feel like coming to work. They don’t care if they are on time. They don’t dress appropriately for the office, which is a big issue. They don’t take pride in the job they are doing.
That’s the joys of parents handing everything over to their children and not expecting them to work for anything.
Oh I could write a book about this topic!

As someone who works for a bank, it also amazes me how many people expect that we will lend them money just because they have been a long time customer. They don’t understand that we have to look at other criteria. A customers credit score and debt ratio are the major deciding factors. When we decline someone because they cannot afford to take on more debt, they are insulted and think we owe them the world. People don’t think late payments or other accounts in collections are a big deal at all. “Oh I paid that ages ago” Really? Why is it still on your credit report then? (Thankfully there are a lot of responsible people out there who make my job much nicer ).

Okay, I’ll get off the soap box now : )

By: Ajana

Ajana — Thu, 24 Jul 2008 06:03:14 +0000

Just picked up the book “Predictably Irrational: The Hidden Forces That Shape Our Decisions” (Ariely) from the library (so it’s FREE!).

Ariely talks about his idea of a self-control credit card, which he took to a major US bank. The concept is to allow users to limit their spending in different categories in a set time frame, after which the card is rejected. The bank listened but, of course, didn’t follow up as they make too much money from the interest people pay - US$17 billion in the US in one year! Perhaps I should contact the author to explain “jars”.

There’s a chapter titled Why Dealing with Cash Makes Us More Honest. This book looks like it will be interesting reading.

As for Gail’s comment about “real excitement”, I got that when I received the letter confirming the debt to my penultimate creditor had been fully paid down. Lots of “yes, yes, yesses” and a dance around the living room were involved. Far more exciting and rewarding than shopping, IMHO.

By: Geoff

Geoff — Thu, 24 Jul 2008 03:53:41 +0000

For those parents on here — this might be informative as to origin of the debtor personality - the marshmellow test tells all - http://en.wikipedia.org/wiki/Deferred_gratification

By: dan

dan — Thu, 24 Jul 2008 01:49:22 +0000

I have at numerous times wondered where the economy would be if it wasn’t for credit. Even with the s**t hitting the fan in the States they are still shopping away with most of it on credit. The day is coming that it will go from the mortgage crisis to the credit crisis and then we are in for a world of trouble!

GAIL, when does your new season start? I am getting antsy!
_____________________________________________
Check out my veggie garden blog:
http://veggiegardenblog.blogspot.com/

By: Travellin' man

Travellin' man — Wed, 23 Jul 2008 21:04:51 +0000

My wife and I love to travel, so we set up an account and put an affordable amount of money into it monthly. But I got asked to travel to Alberta (from Ontario) for my cousin’s wedding and it just doesn’t fit our budget, so I took up umpiring this summer.

I love being outside, being active and now I get to make some extra cash to pay those asinine plane ticket prices.

That’s exactly what spenders wouldn’t do. Why take up time spending to work a second menial job for $12 or $15 an hour.

But hey, I’ve earned my trip and know I haven’t hindered my family in the process.

By: Leslie

Leslie — Wed, 23 Jul 2008 18:42:32 +0000

What makes a debtor personality? Denial.

By: Annie

Annie — Wed, 23 Jul 2008 16:32:18 +0000

That was me to a “T” and, sadly, not that long ago, either. I’ve learned the hard way (at least several times) that instant gratification isn’t gratifying if it doesn’t make you happy and you end up with bullying phone calls from collectors daily. Even then it didn’t make me stop. I only (mostly) stopped when I started honestly paying attention to the fact that being in debt, paying all the money you make to someone else for something you don’t even remember buying, and wondering where you were going to find just a couple of bucks to buy milk for crying out loud, that I started to realize that it really, really sucks.

I had to consciously decide that I deserved to keep some of what I make and almost overnight, the stress was gone. I have funds for various emergencies, am building a safety net of 3 months wages (at this point), and just feel so much better. I do as Lynn does, pay myself first and then my bills on the morning of payday, so it’s done. When I get the bills in the mail, it’s already taken care of.

I also really like what Tracy had to say at the end there, about “balancing wants and needs, etc.” Very true!