Globe & Mail
Published: March 20, 2009
Til Debt Do Us Part relieves domestic credit crises
Globe and Mail - Andrew Ryan
Are you suffering from money-talk overkill? Most nights it feels as if the ongoing economic crisis has taken over every news channel and leads off every newscast. Amid ceaseless reports of layoffs and government bailouts, the so-called money experts keep telling us the meltdown will reverse itself - eventually - while viewers wait for the first sign of recovery. Meanwhile, the bills keep coming in.
There is some assistance available on the Canadian series Til Debt Do Us Part (tonight, Slice at 8 p.m.), which at least brings the crisis down to a personal level.
Back for a sixth season, the no-frills reality series remains one of this country's best sources of sensible money-management advice, dispensed by financial planner and host Gail Vaz-Oxlade, a good person to know in tough economic times. Slice has also been airing older episodes, including a daily three-hour afternoon block of them. That's smart recycling.
And the best news is the show hasn't changed one bit. In the first new episode of the season, Vaz-Oxlade spends quality time with Mike and Sheila, a fortysomething couple who met in a rehab facility. Having overcome their addictions, the pair married four years ago and have since been spending money madly to make up for lost time. Mike's job brings in $70,000 a year; Sheila is a full-time student.
While they're trying to plan for the future, the shopping spree goes on. Sheila is literally spending money her husband hasn't made yet. Shoe purchases are a major extravagance and the couple refuse to deny themselves such luxuries as a big-screen TV.
Hence, Mike and Sheila have zero savings and are instead paying off department-store credit cards charging 30-per-cent interest. Sound familiar?
A quick accounting reveals Mike and Sheila are overspending at the rate of $3,500 per month. Vaz-Oxlade calculates the couple will be roughly $500,000 in debt in five years time. In the simplest of terms, they are living way beyond their means.
The host takes charge. She takes away their debit and credit cards and cuts their monthly budget by more than 80 per cent, thereby eliminating the conspicuous spending. Along with posing a series of weekly challenges, Vaz-Oxlade puts them on a strict cash allowance and establishes a relatively painless plan that will pay off all of their creditors within six months. You can see the relief wash over their faces.
And once it's clear they're on the road to recovery, Ms. Vaz-Oxlade presents the pair with a cheque for $5,000, a travel voucher for a second honeymoon and a hug. It's not exactly a stimulus package, but every little bit helps.