4950 Debt Soaked Economic Slump

is the phrase used in the WSJ article today about debt management groups, from 12 step programs to websites, to church classes. The problem I have with that phrase is all the people in the article were in deep trouble with debt long before the current slump. In fact, their problem with debt--spiritual and psychological--fed on the boom times we've just been through. It's the bubbles and booms that often lead people to debt, not the low times. Like Shawanda Green, 26. Her income is $82,000 a year, but she liked to buy $400 boots and she had a parasitic boyfriend who ate up all her food. He like quality and quantity. Richard Rice, 37, with an income of $70,000 has a credit card debt of $20,000. Michael Wagner at 34 had a silver BMW and $25,000 in credit card debt. He started to do better, then got a new girlfriend who was a spender, and went right back in the hole. They didn't get into this mess because of high gas prices and a mortgage crisis. Listen carefully to how financial sob stories are presented. Do they really have anything to do with the state of the economy?

So the solutions presented were: eat at home; dump the spend thrift boyfriend/girlfriend; don't file for bankruptcy--pay your debts; establish a savings account; cut up your credit cards. I'm guessing their mom or dad told them the same thing, but sometimes you need group support or a web site to do the right thing.