Maxed Out: When Debt Leads to Suicide
Reuters reports today on a new movie, “Maxed Out,” that will open in theatres March 9. It is a tale of tragedy and despair, in which people under a mountain of debt feel they can never dig themselves out.
On the movie website, you can see clips and read the brief description: “Maxed Out shows how the modern financial industry really works, explains the true definition of ‘preferred customer’ and tells us why the poor are getting poorer and the rich getting richer. By turns hilarious and profoundly disturbing, Maxed Out paints a picture of a national nightmare which is all too real for most of us.”
The director, James Scurlock, says “I thought this was going to be a light-hearted romp through the world of credit. But when I started interviewing people, I came to realize how emotional this topic is. We talked to bankruptcy attorneys and they said these clients will come in absolutely prepared to commit suicide.”
“Banks and credit card companies are setting their customers up to fail,” says Scurlock. “When we inevitably fall behind, they can charge late fees, over-limit fees and the stratospheric interest rates that drive their profits.”
Reuters story explains that “Indeed, bank profits broke new records in 2006, despite slowing economic growth. Fee income was often cited as a key source of earnings.”
“Maxed Out” also features employees of collection agencies who pursue those in debt relentlessly, with the aid of easy access to their personal information and that of their friends and family. Says one, Bob Johnson, “I like to think of myself as a pirate and you’re just walking that person out on the plank. And then you pull them back when you get what you want. Of course, sometimes, in the beginning, you’re going to push a little too far.”
What particularly struck a note with me was the targeted outreach to college students, to get them indebted early and potentially keep them indebted their entire lives. I remember being a senior in college and signing up for credit at the booths set up by Visa, Mastercard and others. Sign up and get a free t-shirt! Would that I realized at the time I would soon find myself in nearly $40,000 of credit card debt, which affected my job choices, family decisions, and housing opportunities. I consider myself an intelligent person, but I was actually a very easy mark.
I’m sure many readers of Queercents find themselves exactly where I was not long ago. I hope this site provides you tips, tools, and most of all a community to support you in the journey from indebtedness to frugality and, in the end, financial freedom. I’m definitely going to see this movie, and maybe I’ll see you there!
Rich,
Thanks for the movie tip. I actually did not know about it and will put in on my list right next to “An Unreasonable Man” and “Bamako”. Actually, seems like “Maxed Out” and “Bamako” would make for a good for a one-two combo, the former being about personal debt, domestically, and the latter about the debt facing poor countries, no less prone to being targeted by credit vultures, where the national debt leads to suicide, death, psychic suffering
and the general reproduction of poverty, en masse. For example, I am sure many of your Queercents readers know about the suicide epidemic that haunts India. If not, check out this Frontline piece: http://www.pbs.org/frontlineworld/rough/2005/07/seeds_of_suicid.html
Even traditional religious barriers to suicide can be compromised by such misery.
I’m personally lucky that I’ve never really had much consumer debt. Debit cards probably saved me here–I spend only what I know I have. Educational debt is a totally different matter and I know I will need to be a most frugal college professor when the day comes.
Is there anyone else out there with lingering educational debt looming over their shoulders? I’m paying monthly as much as I can but, of course, on a graduate student’s earnings it’s never easy. Though, the situation has also helped train me at this key stage in my life to appreciate the simple things in life. My level of contentment is actually much higher than it was when I’ve had more expendable cash.
Kudos to Rich and the other Queercents writers who are willing to share their own personal ups and downs with money so that others might glean some helpful tips and ideas.
Part of this week’s Carnival of Debt Management:
http://www.debtconsolidationlowdown.com/2007/02/carnival_of_deb_2.html
I had a brother commit suicide in 1992 after I refused to lend him money two months previously. He was a great guy, not into drugs, drinking, gambling or other habits that could potentially set someone up for debt. He just loved to spend beyond his means. It is nearly 15 years and not a day goes by that I do not think of what happened.
Although I have not seen the movie, I am feeling almost suicidal myself. I have a mountain of debt, I’m behind in my payments and I am working myself into exhaustion trying to make more money. I told myself, that before I would take my own life, that I will exhaust every possible option of getting the money to pay my debts. So far, nothing has happened and no money has come in. I am still hopeful, because I really don’t want to die, but I also feel like I don’t want to live…
Great post. This definitely looks like a very interesting, worthwhile documentary. Can’t wait to see it.
Desiree, I hope you’re OK! Those credit card company scum aren’t worth committing suicide over.
The credit card companies are not going to get away with it forever – they’ve hurt too many people, and in my opinion, the tide is starting to turn against them.
I suggest keeping an eye on my credit card boycott web page (which you can reach by clicking my name) – I put up new links every so often.
I don’t keep a close eye on the news related to the credit card industry, so my page isn’t comprehensive, but I put up interesting things every so often after I discover them. Perhaps that page will be of some comfort and/or use.
Take care, Desiree, and everyone.
Best wishes,
Apollia