If you're not watching 20/20, put it on

[melissel]

Awesome show about consumer spending and debt in the US...

[snuggly mama]

Just finished watching it and was curious what people had to say. I told dh that I couldn't decide whether it was making me feel good (that we are working on a plan to get out of debt) or bad (that we have so much debt in the first place). I also wish that these kinds of shows would address debt that is incurred for reasons other than frivolous spending. It would be easy to look at my cc debt and assume that we simply don't know how to live within our means, but what a majority of that debt is a direct result of medical issues, unemployment, etc. Doesn't mean it's ok, just needs to be dealt with a bit differently, I think.

Overall, though, I thought 20/20 did an excellent job of making people take a good hard look at what their financial situation is and what debt really does to your life.

[oneKnight]

I expected more Dave Ramsey, and less debt collectors, but I thought it was generally good. I hope it helps some people out. It made me glad that DH and I made a debt free choice before it got too far out of hand.

[teacup]

Originally Posted by snuggly mama

I also wish that these kinds of shows would address debt that is incurred for reasons other than frivolous spending. It would be easy to look at my cc debt and assume that we simply don't know how to live within our means, but what a majority of that debt is a direct result of medical issues, unemployment, etc. Doesn't mean it's ok, just needs to be dealt with a bit differently, I think.

You're right. My SO used to work for Americorps via Habitat and said so many of the families they housed were in trouble because of medical debt. No insurance. And you're right--it's not okay. Because everyone should have health insurance! Having to buy food or medical care/medicine with a card is something no family should have to do.

How frustrating for you. But good for you for working on it.

[Eman'smom]

I agree, we have what we think are nicer/newer cars, but other than that our life is pretty lean, dh has massive student loan debt.


The family they profiled was intresting, yes they lived a lavish lifestyle, but it seemed like they were supporting that lifestyle until a job loss and poor investment turn.

[Leta]

Yeah, that's the thing that people don't understand about consumer debt.

I'm sure that there are a lot of people who are in over their heads because they love to shop, are terrible with their money, or both.

I also think of folks like my (wonderful, sweet) aunt who has an awful inferiority complex. She thinks that everyone has more money than she does, that she's so poor and broke, even though she's a SAHM with a beautiful home, a lake cottage, a boat, two cell phones, cable, DSL, two nice cars and good retirement and health benefits thru my uncle. And she really has a modest amount of debt- some student loans, and $800 per month toward both houses, and that's it. I think it's this type of attitude/thinking that drives people into debt. (Then again, my aunt grew up rather priveleged, so maybe that's the root of it.)

But back to reality: something on the order of 80% of bankruptcies are precipitated by medical events. If you include other major life disruptions like death or divorce, the percentage is in the 90s. So even though overspending may contribute to many bankruptcies, it is not the silver bullet that it is often made out to be.

DH and I carry a little under $3000 on a cc (that we're paying off with this tax return! Yay!) and the vast, vast majority of it is car insurance and moving expenses. We don't even have a stack of DVDs or a closet full of clothes to show for it.

Yeah, this may indicate that we are living above our means, but I'm not convinced. We are required to have car insurance in MI, and DH has a perfect driving record and I have 1 ticket. But insurance is underregulated and expensive.

I think there is a new level of poverty in America, and when you combine that with a supermaterialistic culture, predatory lending, underregulation, and no real funding for education (don't even get me started on student loans), you have a recipe for disaster.

Not to mention that during our remarkable phase of national unity after 9/11/01, the president's idea that we could all help our nation by shopping a lot just fed into our screwy priorities.

[ollineeba]

I watched the program. I was hoping they would talk more with Dave Ramsey, since I'm new to his methods. I thought they dragged the bill collector thing on too long, but other than that, I found it informative.

[ustasmom]

I couldn't see why the financial expert had that family sell their primary home and rent in the same neighborhood.

I can see getting rid of the timeshares and the rental property. But what is the purpose of renting a house instead of owning it. The market has gone down so it can't be that they did well with the sale. It seems to me that before, although they had debt, they did hold some equity. Now they just have nothing.

[msjd123]

I got tired and went to bed. What did the Peterson family decide to do? Did they sell the house and do everything the planner suggested?

[ollineeba]

Originally Posted by msjd123

I got tired and went to bed. What did the Peterson family decide to do? Did they sell the house and do everything the planner suggested?

It looked like they were going to do that, but I don't think they ever went back to it. Maybe there will be a follow-up?

[oneKnight]

I read in Reader's Digest that 70% of families that went bankrupt due to medical expenses DID have insurance, but that the system is so backwards that they still got stuck with most of the bill. I cancelled my insurance that day. Why pay every month for something that isn't gonna actually help you? (I'm not recomending you do this, but it's a cost/benefit that everyone has to evaulate)