I just saw another ad for credit card bailout for individuals! "If you owe more than $10,000, there is help". On the one hand I understand the struggle with not being able to pay the bills and that is mad more difficult with job loss, etc...
HOWEVER, these same individuals had no problem spending the money the first time. I resonate with "personal responsibility" and how to really help people. As a nation wouldn't it be better to 1) teach people to handle the money better, 2) provide help to pay off debt as the individuals make some progress in paying off their debt (example; matching their debt payments).
Truthfully, Lori and I spent a long time paying off the debt that WE BUILT and we had partners who helped pay it off. The real value in paying off debt was learning to live with LESS. Bailouts are a quick fix that may do more harm than good because new habits of money management are bypassed.
1 comment:
I agree David on a personal level bailing out people who have been wreckless with their spending is frustrating. However, on a macro economic front, allowing consumers to have some type of recourse is better then having them become destitute. Yes, the majority of cardholders do themselves in, but not without the strong influence of a credit and lending system all too ready to ensnare them. The long term solution is financial education, and the abolishing of our consumer credit rating system. How can a person with 50k in credit card debt, a 30k annual income get another credit card with a 10k credit line?
Post a Comment