Bankruptcy Fever

Thursday, January 24, 2008

Bankruptcy Returns Part 2

My issue for my paper is debt, credit and bankruptcy. Actually, I have already wrote on yesterday's blog about these issues, primarily bankruptcy.
These issues are important to me because, of course, they have impacted me directly. But also I think that the problems that we see now show a picture of the attitudes we have developed and our values.
We are a very materialistic society. We want things and more things. The prevailing attitude seems to be that having "things" is what it takes to reach a state of happiness. Singer-songwriter Tracy Chapman wrote a wonderful song about this issue. It is called "Mountains O' Things". If you have never heard it, give it a listen. The Canadian band, The Duhks also have a great cover of it.
This attitude and message is poured out to our society from a very early age. The media is one major culprit in this. Commercials constantly encourage us to spend, spend and spend some more. Also buying big, expensive and the best is most important. Having more makes us more of a person and a better one according to all the hype.
If a child grows up in a family where they see that the important values in life are to always have the biggest and the best, generally they are given everything they want. Even if the parents cannot afford it this occurs because parents want the best for their kids. However what they are interpreting as the best can actually cause children to grow up with a sense of entitlement. People believe they deserve it by birth and it should be handed to them because they want it.
As these children grow up and become adults they carry this attitude of entitlement with them. The problem grows up with them and becomes a larger problem. They may get jobs and work (or not) but they think "their money" should be spent on what they want.
Eventually they get credit cards and then the real fun starts. I believe the practice of these credit card companies sending credit applications to college students is from the devil. Supposedly they would say you need to develop a credit history. Well yes, but charging up a bunch of credit cards is going to create a bad one.
From there you may decide to buy a house. Well, your credit history is not that great because of the credit cards and that bankruptcy you had to file because of all the credit cards. The sub prime vultures are ready and waiting to swoop down and help you get a house that you cannot afford. High fees, hidden costs and variable rate loans where the interest rises (along with your monthly note) after two years. Then you have to file bankruptcy again to try to ward foreclosure or you just let the house go. A hard lesson to learn.