Letters to the Editor
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Good story...but...
I think Sarah's situation is very common. While she may not have the staggering, traffic-stopping debt some posters have mentioned, it is still worthwhile to read about her situation. I think she represents the norm, not the extreme, which is why her story is easy to relate to.
That said, shame on the fact-checkers for missing this one: it's not "Funk Soul Brother."
It's "The Rockafeller Skank."
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Debt is Symptom of Many Things
Some letter writers feel that this piece gives too much voice to those who think struggling Americans are struggling because of bad personal choices. The articles a fluff piece on what is serious topic for many Americans, but it's not an article or intended as an article on trials tribulations of the working poor. Sarah is not htat.
I think we shouldn't confuse issues. Sarah's debt as bad as it might be is not catastrophic. It is a hole she can climb out. debt brought on my medical emergencies and extended job loss are not. To be a critic of overspending does not lead to being unsympathetic to those who struggle with debt because of circumstances out of normal control. To ask for adequate health care, and an economy that provides real wages to to more than just the top 40% does not mean giving a pass on over indulgent behavior.
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Bankruptcy
You won't get straight talk about bankruptcy from a credit counselor, because they're paid by your creditors. Bankruptcy trashes your credit for 10 years, delinquency for 7. So, your credit score could recover 3 years earlier. But, if so much of your income goes into interest and fees that you fall into delinquency again, you could actually be better off with bankruptcy.
And, many lenders will grant credit, since you can't file for bankruptcy again for 7 years. And, since you're not paying all that interest and fees, you could buy many things with cash.
That's what I did. My financial reprieve allowed me to finish college instead of working two jobs to pay interest. My credit score recovered long before the 10 years ran out. Now, with the income my college degree gets me, I can actually afford to live a comfortable, financially responsible life.
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American Entitlement & Overconsumption
Congrats for growing up before 40.
This article will be referenced in history books 400 years from now - it will be in the chapter describing the decline and fall of the United States of America.
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Living Below Your Means
I'm one of those folks who doesn't have any credit card debt, mostly because, although I'll be 50 on my next birthday, I've never owned a credit card. Nor do I think it makes me any more morally excellent than the next person; I just remember hearing once, when I was a kid, someone say wistfully they wished they'd never ever used credit cards...and for some reason, that stuck. I drive an older car (paid for) own a nice though modest house in a cheap area (paid for)and was lucky enough not to have to borrow too heavily for college back in the day (I have friends my age who are still juggling college loans). I am paying that forward by saving aggressively for my own two kids' college costs. I rarely buy anything I don't need, and that doesn't feel like a hardship somehow. I save as much as I can--there was a time when I was able to put away one paycheck out of every four, and that paid off later when my husband got ill and I had to quit working for awhile to take care of him. If there's something I want, I wait until I have enough to pay cash for it, or, better yet, I wait a week and see if I still want it then (generally, not so much). The thing is, when you're not paying out a bunch of money in interest every month, there's more left over to work with, so my kids can actually have that iPod (although we never go out to eat and buy most of our clothes at thrift stores). All of this has an unexpected downside, of course, which is that I can't get a small loan when I need one. And of course, I've been without health insurance for nearly seven years--if you don't count my faith-based health insurance, which consists of me praying that I don't get sick.
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The Sadness of Our Time
Thinking it's OK to live beyond one's means is America's mental illness today. Of course we can have it all; the tooth fairy exists! It's like a drug. The feds are doing exactly THE SAME THING by proposing to give working people "free money" to spend on themselves -so as to rescue our economy! Now there's setting an example for you. A responsible government would have staunched the flow of dough into Iraq years ago and would be taking care of America's business: schooling, health care, infrastructure. Am I the only one who remembers a time when America could legitimately claim adult stature, when assuming responsibility for one's actions was the pride of its citizens? My immigrant grandparents, who loved this country more than their ancestral home, would weep if they knew.
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Two books, folks
And, no, I'm not a spammer---just a 40-something fellow who got himself out.
Go to Nolo dot com and get their books on debt, and bankruptcy.
And yup, a bankruptcy had to happen. Due to a devastating hand injury that needed an operation to fix. No money from family. This was in 1996--the beginning of the end.
I educated myself on how to file for bankruptcy, and filed myself. This way I saved $600, and truly understood the consequences.
Now, 10 years on an all-cash existence. If I don't have the money to buy it, I don't buy it.
A new, secured credit card for $200, to rebuild credit.
For years after all my credit cards were gone, I lived on less than $15,000 a year. Let's see---that was 8 years.
Boy, did that hurt, especially living in Manhattan.
But this year, I got a job that pays a little under 100K.
So I live on $30,000 a year, and save the rest.
It can be done. You can get out of debt, and live within your means until the ship comes in.