Must See Documentary

If you can find it, you will want to see "Maxed Out". A very powerful documentary about the reality of our credit/debt problem here in the states. The personal stories are very moving and include the suicides of 3 people who felt that was the only way out of their debt. The excuses from the credit card companies were chalked full of lies. The enthusiasm of debt collectors was repulsive.

Some other little tidbits:

The Bankruptcy Law that passed in 2005 now makes it near impossible for middle income Americans to declare bankruptcy.

During the Senate Hearings on the Credit Card Industry in 2005 (I believe that was the year), the representatives from the Credit Card Companies were not required to speak.

Jerry Falwell's answer to debt? Tithe 10% to "God" (or in his case, his church and his pocketbook).

Suze Ormann, who I used to have great respect for, is always pushing the importance of the FICO score. Little did I know that she has a business partnership with the FICO people (Fair Isaac Corporation). The FICO folks, first and foremost, make their money by selling information about you and I. There's also not just one FICO score--there are dozens of them. Banks. Insurers. Your phone company. And the FICO scores don't consider your income--only your payment history. Hmmm. Considering Suze tells people not to cancel credit cards and to never ask for your limit to be lowered, makes you wonder just whose side she's really on.

Elizabeth Warren, Harvard Law Professor, spoke of the creation of a Two-Class Society. It's already under way and unless things change on many fronts, the middle class will continue to fall into the poverty class. She speaks at length about how two incomes today simply aren't cutting it as it once did, given the rise in housing, health care and other basic life expenses and how wages simply have not risen to the levels needed to keep up with said rising costs. (Yep--been talking about that on this blog since day one.)

Check out this article for some additional information, information as was covered in the film.

I'd have to say one of the stories that touched me the most came from a radio show caller on a talk show out of Tennessee. The Talk Show Host had gone through his own credit debt hell--he lost everything--had to declare bankruptcy. Now he counsels people on the phone, trying to help them avoid bankruptcy. One woman called in, said she and her husband were drowning in debt and were considering bankruptcy. In fact, she felt it was their only option. The talk show host started to explain to her there were other ways, perhaps, but she interrupted, in tears, saying "My husband is suicidal over this. He keeps saying unless this debt is removed, he cannot go on. He really wants to kill himself. He can't take the pressure anymore. Do you get that? He is suicidal!!" This very distressful, real, moving statement silenced the talk show host--he wiped his eyes, shook his head and had no answer.