"Don't part with your dreams - when they are gone you may still exist but you will have ceased to live" - Mark Twain

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Thursday, 14 August 2008

Maxed Out - How much have you borrowed?

Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders

I recently watched an interesting movie called Maxed Out by author and director James Scurlock. It was filmed in America in 2006 and it nicely leads into the current credit crunch (now so widespread it is in the dictionary)

The film reveals how banks are lending more and more money to people and actually hope that they can't repay their debts, so they have to pay late charges and more interest. Banks will turn up in universities and offer banking services and credit cards to students willing to give them their details in exchange for a t-shirt or a back pack. Applications are sent in the post to children, the infirm and those that are dead or already bankrupt, so much for up to date and correct credit files (or spying records).

Get the book from Amazon: Maxed Out: Hard Times, Easy Credit


When asked about not lending to the vulnerable and those at the lower end of the economy, therefore reducing the amount of defaulted payments, the answer was simple: That is where the majority of the money is made. The banks and credit card companies prey on the weak and those with little financial knowledge.

If you can't pay or default, the creditors sell the debt to third party companies (like the mafia used to do) and they will then hound you with calls, letters and threats to get the money out of you. Even as far as contacting neighbours and family to shame it out of you by causing embarrassment.

Is your credit file incorrect? They don't care. You want to pay off your debt? They'd rather you didn't. Want to borrow more? Of course.

The US government has been unable to pay the interest on it's loans of around $9 trillion (the US National Debt clock), so it borrows it from the Social Security 'trust' and the amount keeps increasing every year. The UK national debt is estimated at around £1000 billion, how much of the interest is paid by your pension money? The winners in this game? The BANKS!

Do you believe that you should pay back money that you borrowed, then good on you. Did you know that banks want you to stay in debt and end up taking around 2 times interest on the amount you borrowed? So for every pound of principal it is an additional two pounds of interest and charges. Whilst people are worried about what they are going to do, where does this all lead?

To an ever growing amount of debt, people struggling to make payments day to day, poor health and even to suicide! Just remember you are not the only one or alone, there is always a way out. If you are struggling, then seek help now! You can contact Denis or Morris at Just Debt on 01423-541317 for a free consultation to discuss your debt and finances and they will help you find a solution.

After all it is 'just debt' and living your life is so much more important than worrying about things that might never happen! Remember, you don't actually ever own or lose any thing. We are just custodians at the moment, till it is our time to leave them for future generations - take the time to look after your health, your family and those you care about. It's not all about the money!

You can buy the DVD from www.politicaldvds.co.uk for a couple of pounds.

"There's a lot of shame and a lot of guilt attached to the issue of money mismanagement...Everybody feels like the other couple has a perfect marriage and a perfect everything...Turns out, I've met Ken and Barbie and they're broke." -Dave Ramsey

"The size of our problem out there is very large. I regret to say that the word billion does not encompass the nature of the problem." -Alan Greenspan

"Maxed Out does for credit card companies what Super Size Me did for fast food."


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