TV Review: Global Currents Debt Trap

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Nov 132010
 

I’m watching a documentary on our insatiable appitite for debt on Global TV called Debt Trap.

The program profiles many normal people who are drowning in credit card debt. The first such person is Jennifer (who is CUTE, BTW) and she’s struggling to pay off her $10,000 credit card balance. The producers try to make us feel sorry for her since she used the money to buy so called necessities like a bed, dresser and storage when she moved out of her parents’ house. Jennifer feels overwhelmed with the debt and can make the minimum payments but not much else.

We then meet Sanjay, an immigrant from Thailand. Sanjay has 3 credit cards he’s maxed out as well as a mortgage he shares with his parents for around $300,000. Sanjay feels that it’s the banks’ fault he’s in debt and blames them for issuing the credit in the first place. He feels without debt he wouldn’t be able to “fit in” and have the same sorts of things everyone else has.

The next segment is on mortgages and real estate. A young couple is profiled and they begin with a story about buying their current house. Naturally, it was a bidding war and they ended up paying $550,000 for the place. Add in their student loans and car payment and they can barely afford everything. The couple has cut back on haircuts and going out for dinner to make ends meet. And just as I’m about to drown out this couple’s complaining, they reveal they’re going to sell the house and use the proceeds to pay off all their other debts. What a revelation!

Next the program talks about the stagnation of income while living costs keep going up. The next person profiled is Rich, a former investment advisor who topped out at $150,000 in consumer debt while driving a next to a new Mustang. His son, Josh, is a recent grad still living at home, who has student loans coming out of his ying yang. Rich is complaining how expenses have gone up so much while salaries aren’t. Naturally, none of his debt problems are his own fault.

Okay, it’s now halfway through the program and I can’t take it anymore. Debt Trap assigns absolutely zero personal responsibility for the borrowers who took on debt in the first place. The lender is the one and only villain on this show. How much responsibility should the borrower take on to use credit properly? According to this program, absolutely none. I have a problem with that.

I get that debt is a problem in North America. There is no doubt that we are in debt up to our eyeballs. And while I feel sorry for people who are drowning under a massive debt load, nobody forced them to borrow money. If somebody wants to learn how to use debt right, there are countless resources just a mouse click away.

The program says we’re forced into a “never-ending debt trap.” Quite frankly, that’s crap. Where are the stories of the people who have used debt responsibly? Where are the stories of the people who avoided debt completely? Where are the stories of the people who are smart, who have willpower? Not everyone uses debt like a fool.

Debt is only as bad as the borrower makes it out to me. Expecting a bank to force you to borrow responsibly is wishful thinking at best. The only positive of this program is that maybe it makes someone avoid debt in the first place. If someone is already in debt, they’ll fit right in at this pity party.

I’m not even going to link to this thing. If you want to watch it, you’ll have to find it yourself.

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 Posted by Nelson Smith at 8:54 pm
  • http://www.fabulouslybroke.com FB @ FabulouslyBroke

    Just reading that annoyed me. There's a similar movie that came out a while ago in 2002 called Maxed Out. Similar style of documentary, making banks look like villains and not allowing people to claim responsibility for being so utterly STUPID with their money.

    I admit to being stupid with my money (still am but I'm trying), which means if I get back into debt for stupid things, and not because I need food on the table for example, or whatever else, I should own up to it.

    This sounds like a feel good documentary to make people feel less guilty about their debt. "Oh yeah they forced me into loving nice cars, big houses and STUFF!"

  • marisa

    I liked the show Debt Trap. I did not perceive it as a "feel sorry" for those who were interviewed. I viewed these people, by thinking that they did not use their common sense. That being impulsive spenders has not paid out in the end. People him and haw about going to a dinner or movie or show, questioning themselves if they could afford it. But they do not do the same when purchasing house/car/and unnecessary materialistic material.

    Gone is the old way of life where people visited each other at their homes and enjoyed themselves. Having good laughs and making memories. Bringing the kids to the icerinks to teach them to skate. or campling to swim or bonfire. Now we pay someone to teach our kids to skate or have fun camping. It's the little things that add up with our spending habits. Emergency funds…what is that?…day to day paycheck spending. We need to take more control of our lives and not allow those outside sell,sell, sell or buy , buy buy commericals get to us. Some things that did happen in the past was good. Family values/saving for the future and home cooked meals.

  • admin

    FB- I only made it about halfway through Maxed Out before throwing up in my mouth a little. Last night's program was very similar. Both shows were cheap populism at it's worst.

    Marisa- While I agree with all of your points about our consumerism society, my beef with the documentary last night was all about how bad debt is and nothing about steps people can take to avoid or minimalize it. Where were the interviews with people who avoid debt? Where were the people who have paid off their debts? Not everyone is wallowing under a mountain of debt.

   
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