Pajiba

Well shit, this just jumped up on my list. Credit companies are brutal. It took me YEARS after my collegiate credit disaster to repair my credit, during which companies were frantically trying to get me to sink deeper into debt. It was a fucking nightmare, and my debt wasn't nearly on the level as some other people. Now? I pay my credit card bill, in it's entirety, each month. Other than my house and my car, if I can't afford it, I don't buy it. And I take great pleasure in the fact that it drives the credit card companies batshit crazy. The fact that they call people who have repaired their credit to get them to try to spend more money is utterly despicable.

ABSOFUCKINGLUTLEY

death to the debt-collectors

Wow, Dustin, I don't think I've heard you so passionate about a film that had nothing to do with snarkiness. And I'm being sincere.

I've managed to stay away from the horrors of credit card debt, despite the fact that I'm still receiving credit card offers from every friggin' bank in the US, and I've been out of college for over a year now.

I'll see this film for the educational purposes alone.

I did collections for years, but it was calling corporate clients to pay up their accounts. I would have a hard time sleeping at night if I had to call people in their homes and harass them.... had a roommate up & leave suddenly, bills unpaid, and FOUR YEARS later I am still getting threatening calls. Threatening ME.

Credit card companies are evil spawns of Satan. I have a good amount of credit card debt, but to my credit (ha ha) I have never made a late payment and I pay significantly more than the minimum. Imagine my surprise when I received a notice from one credit card company saying they were raising my interest rate from a fairly reasonable 7.9% to 29.9%!

When I asked them why, they said I had crossed some (invisible to ME) line, and was "suddenly carrying too much debt"...ON ANOTHER CARD. Huh?

That was the day I started playing the revolving-card game. I found a card with a long-term 0% introductory rate, and a FIXED low rate afterwards, and said buh-bye to those a-holes. As recently as last week, I called to have an inexplicably high rate reduced, and was informed that "that rate isn't too high". RIGHT.

So, I transferred all that debt to another card which happily gave me a much lower rate. It takes work, but it is worth it to be able to call them and say "bite me, I'll take my business elsewhere".
Seriously, you high-school/college-age kids: learn from your elders. Just say NO to debt!

Colleges really should stop allowing credit card companies to set up tables all over student unions. They do it for the money, of course.

It's sad, also, that people don't know that there are limits on what these motherfuckers can do and say to you. Some of their tactics are downright illegal, but they try to shame people into thinking they deserve to be treated like shit because the racked up a credit card bill.

I know there's lots of arguments in favor of credit card companies: they democratize access to credit and allow people to buy things they may actually need but don't presently have the money for. That said, they engage in many, many sketchy tactics for which they've been sued (successfully) on many occasions.

I have a dormant Mastercard (paid it off and never use it) on which I had a mysterious $6.99 monthly charge for some security service I'd never signed up for. I can't even tell you the rigamarole I had to go through to get it taken care of - and they never reimbursed me for the months they'd wrongfully charged me. They made it more attractive to give up than to pursue getting it taken off the bill! They also called me once at work when I was 23 and told my assistant it was an emergency. It was a late payment. I frigging flipped and sent them a, ahem, strongly-worded letter.

Credit card companies (ie, banks) and collection agencies are scum. That doesn't give people the right to flake out on their bills, but I find I just don't care when I think about the assholes the deadbeats owe money to.

Perhaps a naive question:

Is there anything wrong with NOT owning a credit card...ever?

Actually, Diana, there is - if you have no credit history it can make it difficult to apply for more legitimate loans - home mortgages for example. As with everything, and doubly so with credit, it pays to be an aware consumer, to not let yourself be pushed around, and to exercise moderation.

To amend my previous comment slightly - I meant ABSOLUTELY no credit history. Probably if you have a history of managing student loan payments well, or something similar, having a history of on-time/in full credit card payments is less important.

Diana, there's nothing wrong with not having a credit card (I would hesitate to call it "owning"--the credit card companies really end up owning YOU), except it can be difficult to obtain home and other major loans from some banks. This is because having no credit history is, in the banking industry's eyes, just as bad as having credit card debt. This fact alone goes to show that credit card companies and the banking industry are not only in bed together, but possibly running afoul of many sodomy laws in Red State America.

I just got my first credit card three months ago at the ancient (to the credit card industry, anyway) age of 36. A major American department store finally took a chance on me--a responsible adult citizen who has paid off three car loans in her lifetime and has zero debt. Until then, I had been consistently denied a credit card by every one from Working Assets to my local Old Navy franchise. Now I don't purchase anything unless I can back it up with funds in my checking account, I pay the balance on time, and I'm the credit card industry's worst nightmare because they can't make any money off me.

Zoomer's a faster typist than I am, as you can tell.

The only thing more outrageous than credit card practices, is a person in designer clothes, bags, shoes-eating a $200 meal, and driving a BMW.

Geez...live within your means, pay your bills on time, and for fuck sake start a saving account.

Credit card debt??? YOU DID IT TO YOURSELF!!!! The credit card didn't charge itself

Oh yeah and the above Paris wannabe earns $30K

The most despicable of the despicable are the collection agencies masquerading as law firms. They purchase the bad debts of creditors living in their general area at pennies on the dollar. They tack on all sorts of completely arbitrary fees and costs to the debt, then they threaten to pursue judgments against the debtors unless they're willing to capitulate to a payment plan whose terms they will dictate. They rarely have balls enough to go to the trouble of following through unless it's a lot of money. But they manage to intimidate the debtor into a payment plan, the first payment of which is likely more than they laid out for the debt in the first place.

Diana: Is there anything wrong with NOT owning a credit card...ever?

Well, if you want to rent a car or stay in a hotel... ever! Using a debit/check card with the Visa/MC logo will allow you to check into the room, but the hotel takes the FULL STAY out of your checking account, plus they can put an amount "on hold" (up to $200) for "incidentals". With a true credit card, they only verify the card for the first nights stay and/or incidentals. I understand the reasoning for this: one could use a debit/check card and only have enough for 1 night but stay much longer, slip out of the room and the hotel has to re-run the card until to clears. However, if you don't have a credit card or are traveling on a budget (ie, waiting for a deposit to clear), you are screwed.

And when you rent a car with a debit/check card, they usually want a $500 deposit.

And let's be clear Ali, most people who are harassed by debt collectors are very aware of their debts. But it doesn't give these agencies the right to threaten to sue you (which they oftentimes can't do), or outright lie (which they do often). I had a "law firm" try to collect a debtI paid to the original creditor before it even went to collections. They called day and night, threatened to sue, called me names. I complained within my rights to the proper authorities. Turns out, the "firm" had a history of harassing debtors who had paid their debts. Apparently, they had rooted thru some archived files at the creditor database and looked for people who had paid and closed their accounts from 3-4 years prior. Many people get scared when they get these calls and jump thru hoops to pay. How would you like to be harassed for something you didn't do? Or worse, pay a debt, twice!

And don't EVEN get me started on Predatory Lending! During the RE boom here in So Cal, I had SEVERAL brokers trying to put me in $700K, $800K, even million $ homes I could not afford. They looked me in the face and said , "Oh, you can pay $5000 and month and still have a few hundred left over for expenses. A few hundred?!?! What am I going to eat? When I balked, they came with the 130% financing: put down 20% cash, borrow 80% for the mortgage, then another 30% as a 'cushion' for mortgage payments and expenses. So I'm to give you cash, then borrow back that cash at interest, and pay the note with the banks money!?! The third part of this scam is the 'pick a payment' loan. Pay the interest only this month. Just the principal the next. A guess when you earn equity on your home: within 3-5 years, when the market has softened and the rates have spiked. It's shameful they way they operate.

It has been mentioned before: try not spending beyond your means. It's as simple as that. Pay off your bill every month, and if you don't have the money to pay for what you are buying, DON'T BUY IT. It's called personal fiscal responsibility.

I don't mean to harp, but I don' feel bad for a lot of people out there who have debt simply because they HAD to have said thing, though they didn't have the money to afford it.

I use a credit card in liu of the cash in my account. I don't like carrying hard currency, so I use a credit card. But you can bet your ass that I can and do pay off whatever I chose to buy every month, on time, no exceptions.

The blame can be placed at the feet of immature, impulsive, uneducated spenders as well. As the saying goes, there's a sucker born every minute, and two people to take advantage of that sucker.

or something like that.

Not to mention that when you pay off the whole balance, every month, on time, a lot of credit cards (like mine) pay you 1% of whatever you spent. It's a free service they basically pay you to use as long as you don't act like an idiot.

Holy crap that's Liz Warren in the picture. Thank you, Dustin, for the law school flashback nightmares I'll be having tonight.

"How would you like to be harassed for something you didn't do?"

Ugh, I'm having flashbacks:

1. Years ago some guy with my last name, no relation, had the skip tracers after him. The agency decided to go through the entire phone book in my sizeable city, calling everyone with the same last name (not an uncommon one), hoping to find a relative who'd rat him out. The skip tracer who called me over and over (apparently I wasn't convincing) had the honour of being my first-ever "f--off" at a total stranger at the other end of the line. That's all it took, thankfully.

2. When I moved into my current place a few years back, Bell forced me to change my number because I was in a new latitude. They gave me a not-so-fresh telephone number which had previously belonged to some Jane Doe who was high on some agency's Most Wanted--they called us 8 or 9 times a day, every day, for about two months, starting at 7am, because they didn't believe I wasn't Jane Doe. I had to get Bell and our federal communications agency to intervene (and I still had to throw out a brand-new batch of feelance busines cards because of the problem, when Bell changed my number again).

Two words: unlisted number.

This could be... or should be, the Super Size Me for the college crowd. I find it somewhat comforting that so many fellow readers have/have had credit problems.

These people need to be buying www.teesmybody.com t-shirts rather than racking up credit card debt on sportscars and 62 HD tvs- and save thousands and thousands!

Bob Hasko
www.TeesMyBody.com T-Shirts

i'm 20 and still have no credit cards for these very reasons. my mother is a living example of how NOT to use credit, so i'm super paranoid about it.

it sucks though, because when you're in college, you're pretty much broke, (unless you're one of those trust fund brats, but don't get me started on them) and really don't have the funds to back up a credit card...but to do anything financial, you have to have credit.

ugh, i hate the world. perhaps i'll get a visa card and use it for my monthly Ramen expenses.

Credit is so seductive. I really don't want to own one. But if you ever want to buy a house you need to build good credit. It is like they are setting you up, which of course we are. George Bush hates poor people.

Good god, I am so very glad that I have intelligent parents who help me figure out my credit and don't let me overspend while at school. Having any debt at all pretty much scares the shit out of me, and reading about this film just cements that fear in facts. I'm glad you found it so informative, and for that reason I'll definitely put in on my to-watch list. Education about these sorts of issues in this day and age should be mandatory.

I try to remember to call them "DEBT CARDS." It helps me keep things in perspective.

Oh, people might get themselves into debt, but creditors certainly do their best to help them along the way. My wife and I recently consolidated our credit card debt to make it more manageable, bringing it under a much lower interest rate than we were getting from our cards AND making it all payable within a very foreseeable future. Right after we did this one of my cards informed me that, because I'd been carrying too high a balance, they were reducing my line of credit from a couple of thousand dollars to a couple of hundred--thus allowing them to charge me over the limit fees and exhorbitant interest rates, thus perpetuating my debt (and hoping I wouldn't know this). Thankfully by then I'd cleared that debt through consolidation, at which time they restored my balance and, surprise, surprise, lowered my interest rate.

I no longer carry a balance on credit cards from month to month.

And collectors, don't get me started! The absolute worst are the ones that will purchase old debts which at one point may have been delinquent but which have been settled long ago. They proceed to harass the holders of such debt hoping they will not realize that this is a non-existent debt in order to essentially extort money from them.

Truly despicable.

I am 25 and have just bought my first place, in the highly competitive Perth (Australia) market. My mortgage is just barely, barely affordable and I have organised to consolidate my thus far meagre debts onto my home loan, including my credit card.

When I paid out my card the bank tried to convince me not to close the account. I did so anyway, explaining that I couldn't really afford the card, and they have sent me credit card offers in the mail every month since then. I have also been offered a $12,000 personal loan, unsolicited, when they are quite aware that my mortgage is well over 65% of my total gross salary.

My partner is studying full time, and on a very low income. He is also five years younger than me, and was offered a credit card at 18. He accepted it, and is now in quite a lot of debt, and we are struggling.

I'll be making sure we get a hold of this doco, it may save my little sister some heart-ache.

Eek! At 18, I have yet to recieve me very own, shiny new credit card offer and I hope I never do. Credit cards totally scare the pants off me. Having never really understood it, from a tender age all I knew was 'They'll fuck you over'. This doco has just hit my #1 list. I don't want a credit card, but I also know I'll want a house someday. I also KINDA understand the banks reasoning behind wanting a credit history, but guddamn, they make it scary. I want some credit education before I scurry off to college. Thanks for bringing this movie to my attention, Dustin.

I will recommend this movie to my younger sister- she has about $6000 in credit card debt (which she is now working to pay off). I was amazed when she told me the story- apparantly she applied for an interest free period on a fridge when she bought it from some store. She wasn't told that she would be sent a credit card with a $3,000 limit as well- and along with the card came handy instructions on how easy it was to get cash advances- plus when the interest free period ran out, she had to pay massive interest on the balance as well.

All this reminds me--I better pay my bills today. Thanks for that reminder.

Netflix! I've had my share of woes in my late teens and early 20s with credit cards. I learned my lesson and haven't used one in over 12 years. At first it was hard but over time you get used to it.

It's ironic that I wound up working for a credit card company that used to offer balance transfers at a low fixed primary rate for a set amount of time. After 2 months of training on the ins and outs of selling the card, I figured out that there was no way you could ever make a dent in what you owe by paying the minimum monthly payments. I was also surprised that these companies do not like it when you pay more than the minimum monthly payment. I also found out that when people tried to pay off all that they owed at one time, that's when the trouble would start. There would be penalties.

It's been a long time. I worked there for two years and all I could say is that the experience opened my eyes to alot of things concerning these companies. If I don't have, I'll do without until I can afford it. My life has been much easier.

I also want to add that dept. store credit cards are just the same. I started out with a dept. store credit card. I was an authorized user on my dad's AMEX card and believe me, that opened some doors. I was a shopaholic and once I got that first dept. store card, I was off and running. IMO, I think these cards are a tad bit more dangerous than a regular visa or mastercard, especially for a young female. They seem harmless but once they put you up to gold or platinum status, watch out!

My roommate used to get calls from Sears' collection agency every day. If anyone else answered the phone, even a friend or house guest staying over, they got harrassed and threatened by the dickhole on the other end. The conversation usually went something like this:

Us: "Hello?"
Them: "Is B there?"
U: "She's not here at the moment, can I take a message?"
T: "Who is this?"
U: "What? Who the hell is this?"
T: "This is (blank) at Sears' Collections, who is this?"
U: "That's none of your business, I will tell her you called."
T: "Are you sure you're not B?"
U: "What?! Fuck you, asshole!" *click*

They eventually intimidated my poor roommate into setting up a payment plan that took $400 out of her bank account every two weeks. They scared her into giving her bank information away and told her that if she didn't pay they were coming to our house and taking our things. Completely untrue, and completely illegal! We managed to convince her to close that bank account and call the state Attorney General. It worked, too. They called the collector and told them in no uncertain terms that they were involved in illegal collection activities and they needed to back off. Now my roommate is making much more reasonable payments and they haven't bothered us again.

Magic words for you:

Fair Debt Collections Practices Act

It's a federal law that puts some constraints on the collectors. The thing is, you, the consumer have to hit them with it before it kicks in. If they call you, tell them they have to stop or they will be in violation of the FDCPA. They can still send you letters, but they will have to stop the calls.

Most folks don't know this. There are pretty heavy fines for collections folks who violate the Act, but you have to tell them to stop.

To those who are saying that people in debt have only themselves to blame: I was taught by my dad, who's an economist currently specializing in this issue, that I should get a credit card in case of an emergency. Well, I did, and I'm glad I did. One of my pets needed unexpected major surgery, along with other very expensive vet visits. I couldn't possibly have afforded this out-of-pocket. So now I'm over $2000 in debt to the credit card company, but it saved my cat's life. Please don't assume that everyone who has credit card debt is irresponsible.

"I'm the credit card industry's worst nightmare because they can't make any money off me."

Amen to that. I can say a lot of things about my father... He was a controlling, sometimes abusive, dictator... But an insanely frugal dictator. Yes I would get screamed at for leaving a room for more than three minutes without turning the light off... but the only positive aspect of my upbringing was the financial responsibility I had terrorized into me. To this day I have not paid a single red cent to Discover, the only credit card I've maintained for the better part of a decade... Better yet, THEY give ME money with their "Cashback Bonus" program, since I use the card for daily expenses which I pay off every single month. Suck on THAT, credit card companies!

I know for a fact that people who pay off their full balance each month are referred to internally as "deadbeats" by credit card companies.

I'm happy to be a "deadbeat" now. When I was younger, I went through all the nightmares that are undoubtedly chronicled in this film. Trying to get by as an adult without a credit card is damned hard, so do get one, just treat it like it is radioactive and you will be fine.

"I also found out that when people tried to pay off all that they owed at one time, that's when the trouble would start. There would be penalties."

Seriously? I'd love to hear the explanation behind that, especially since I just paid the full balance on one of my credit cards. Now I'm scared.

I only have a few credit cards (three from department stores, one MC), and I barely use the department store ones. Most of the debt I have on my MC is from my dog's last (expensive) vet visit, and I'd be screwed without that MasterCard.

That being said, one of the most imnportant things to remember is that you should NOT use a credit card to pay for a $10 meal. That's the one thing I've learned. Just get a debit card and realize that you can't buy shit if you don't have money to pay it off.

Also, yeah, it's totally tough being in college and not having enough money, but I graduated two years ago and still have a shitload of loans...that's what holds me back from buying all the stuff I'd like to buy now.

Oops, forgot to add "a debit card that deducts money from your own checking account directly". Meaning, you can't spend money you don't have with those sorts of cards.

"Oops, forgot to add "a debit card that deducts money from your own checking account directly". Meaning, you can't spend money you don't have with those sorts of cards."

Yep, that's the kind I have. It's acceptable everywhere a credit card is, because it's a Visa, but there's no danger of spending what I don't have in my bank!
For those who say things like, 'it's easy to avoid these sharks, just don't spend beyond your means' - please have some compassion & remember that there are many reasons for overspending, including mental health issues.

Debit cards - as somebody pointed out astutely earlier, there are bad things about debit cards, too. Car rentals, hotels, etc. will place a HUGE deposit on your debit card that can take up to two weeks (!!) to get reimbursed. I had this happen at a hotel once - $400 deposit for a single evening's stay. It took them about a week-and-a-half after my departure to give it back to me. It was awful I was on the phone with them, my bank, etc. Also, I really don't like the idea of giving access to my bank account to just anything. At least you can cancel a credit card if a situation gets abusive - switching banks is a huge pain in the ass.

I could go on. As to overspending, sure, it's unwise and irresponsible to overspend. I think it's pretty clear, though, that credit cards engage in exploitative, reprehensible business practices that far outweigh the sinfulness of a credit card holder going well beyond his or her financial limitations. People become vulnerable because they've done something irresponsible, but credit cards preying on that is a hell of a lot more blameworthy conduct.

"I know for a fact that people who pay off their full balance each month are referred to internally as "deadbeats" by credit card companies."

Those of us that pay our full balances each month should get some t-shirts printed up that say "I'm a Deadbeat and Proud of It!"

Amen to the two previous posters who maxed credit cards on vet bills. That is my definition of emergency and unlike people hospitals - payment is due in full or they let your little one die. I was almost paid off on the bad debt that I had accumulated in college, now I have puppy debt and it is totally worth it.

Dustin: This is just an FYI (I know you're not responsible for everything), but are you aware that most of the links under Pajiba Love force the reader to go through multiple ads for credit cards and other credit schemes (especially IDLYITW)?

Jumping in again to let puppylover and others know that there are great pet insurance plans available now which are worth it over the long-term. If you think puppy-debt is harsh (but worth it), wait until you experience "old-white-faced-arthritic-major-leg-surgery" dog debt. I calculated that my pet insurance ($40 per year premium) saved me about $4,000 over the last four years of my darling yellow lab's life. In the first few years, all he needed were check-ups and I was going to let it lapse, but then came the arthritis and the torn ACLs. This may not be relevant if you have those little handbag accessories, but if you have real dogs, take note.

The credit card industry is a legalized racket- when I was just 22 and had only a high school diploma, my bank mailed me a card with $10,000 limit when I was earning just over $4000 a year- all I had to do was sign the sucker and call the bank to activate it. Needless to say, I cut the damned thing up and told the bank, "no thank you".

FYI, there's a company called Greendot that sells pre-paid cars in major stores across the U.S.- you buy a card for $9.95, load it with anywhere from $20 to $500 and that's your limit. When you hit zero, buy a reload card for $4.95 and add as much as you want, again from $20 to $500.

I'm on my second card which expires next October and would be lost without it. Their service fee is just $4.95 a month and their customer service is quite good as regards refunding double charges or monthly automatic payments you cancel, only to have the company in question keep billing you anyhow.

They offer both Visa and Mastercard, and you can hold more than one card at a time if you want. No worrying about your bank account getting screwed up- I've used my greendot card at motels with no problem many times. It really is a great alternative to a debit card that uses your bank account.

To those of you who think "the credit card companies don't make anything off of me"; don't get too smug. Because? Yes. Yes, they do. Despite the magic of handing someone a piece of plastic and receiving a set of 600-thread-count sheets in return, no fairies are invovled in the process and the money has to get from your credit provider to the merchant somehow.

The merchant pays on a sliding-fee scale based on number of transactions and average dollar amount per transaction. Many of those same companies that issue cards also process the merchant side of the transaction. There's the money they are making off of you. Granted, it isn't as sweet as 17.5%, but it is their profit.

And it is coming from your pocket regardless if you are paying with a card or with cash: accepting credit cards increases merchant operating costs. Regardless of the increased business that comes from accepting cards, the merchant isn't going to eat that cost; the consumer is.

It is almost impossible to win with these people. At 19 I had my first Dept. Store card with a $200 limit, as I was told to build some credit. At 25 I went to buy my first car and the fact that I had paid my CC late 2 times (we are talking a few days here, never past 30) was enough for them to increase the interest rate on my car loan by 2%!!!!

There is hope, though. I later got into some credit card debt and enrolled in one of those not-for-profit credit management programs. They were great to work with, I got all my debts paid off and by the time I was ready to buy a house my credit was outstanding!

I have never had a credit card, and have no credit history aside from a car loan I'll be paying off later this year. I have applied to Old Navy thinking it would help me build my credit, but I was denied. If I can't even get an Old Navy card, how am I supposed to build a credit history?

I'd rather have no credit than have debt, so I can't complain too much. The whole credit thing is just so confusing to me. I should rent this movie -- maybe it'll clear up a thing or two.

I agree that they should have college courses regarding debt -- hell, they should have high school courses. If I had really thought about the debt to benefit ratio of film school, I never would have applied.

Personally, I'm lucky. My father co-signed for my first credit card while I was in high school, with the the warning that if I didn't pay it off every month, he might kill me. I pay all credit cards off every month, to this day.

But I have friends whose parents never told them about credit cards, interest payments, monthly minimums, etc, and these friends are still haunted by their credit, well into their adulthoods.

That being said, people do need to be accountable for their actions. I know that I live month to month, and that I am one health problem away from serious financial trouble, like many single Americans. And all of that sucks. But I'm also smart enough not to aggravate the situation by buying a bunch of shit I can't afford. For people just trying to make a living, buying the things they need to survive, trying to pay off vet bills, perhaps (that happened to me, too) the credit card company's actions are deplorable. But I also know of people who get into trouble because they confuse material goods with happiness, and spend, spend, spend.

I've only had time to read a couple of comments but I have to say I only have a limited amount of sympathy for people who have huge credit card debt from their college days. I guess these were the people that had a hall pass the day that personal responsibility was taught. Nobody twisted your arm to buy beer and CD's until you had the equivalent debt of the former Soviet Union. Instant gratification has a huge price. Now is the time to take that second job at the 7-11 and pay that shit off. And if you find time to procreate while you're working your ass off to get out of debt teach your kids what your hippie parents forgot to teach you. Don't live beyond your means and don't get a credit card until you have a job. You can blame those assholes at Visa and MC all you want but that's your signature on the receipt. Thanks for the review; I'm looking forward to seeing this movie.
P.S. Those of you with huge debt from books and tuition have my sympathy unless that degree transferred into a six figure income.

I think you're missing the point, Dan. Yes, people get themselves into debt because they are buying something that they can't afford, or in some cases because of serious emergencies, but that doesn't change the fact that credit card companies make it nearly impossible to get out of debt. The credit card companies also prey upon poor people, offering them low interest rates and fast cash advances, only to suddenly hike up the rate a few months later so that the monthly payment amount is about 99% interest.

It's not that people don't know that they're getting into debt, it's that they don't understand that there's no easy way out of it. You charge $100.00 and think that you'll pay $50.00 one month, and $50.00 the next, or whatever, and the next thing you know, you've made three $50.00 payments, and there's still a balance from that single $100.00 purchase.

I actually paid off a credit card once, was sent a refund check for overpayment, and then a year later, went through a HUGE hassle because they sent me the refund in error. It took me more than six months to get that mess straightened out, and I had people calling me three, four times a day, and they even called me at my work a few times until I told them not to. When I finally got to the top of the ladder, and was sent a letter confirming that I did not owe the company anything at all, I actually cried with relief.

I now only owe on my car, and that's just for another nine months or so, and I will be completely debt-free. It's been an interesting journey.

Alright - who wants to join my Fight Club?!

I'm 20, and I've had a credit card since I was 18. My parents told me I had to build up a good credit history, so that's what I've been doing. I only use my card for textbooks and other large purchases, and I don't carry any debt on it.
However, when 3 girlfriends and I moved into our student house last year, the phone number we got must have previously belonged to someone who owed money, because we got 3-4 calls a week for 6 months for "Jennifer." We actually never called the phone company to complain, because we just used to take out our frustrations on the representatives. Every single time we'd get a call, it would devolve into a shouting match, because every single time we told them NEVER to call again, and we would threaten them... It was quite the stress reliever! I'm certainly glad I've never been like "Jennifer", though!

Dan, I see your point, but I think you're being unduly harsh here. The problem is that many consumers don't bother to read the fine print--people who don't fully understand the terms will get a credit card and think, hey, I can spend x dollars on something I need and just pay it off after a couple of months. Many people don't hear the terms "interest" and "finance charges" until they get their first bill. Yes, it's a matter of personal responsibility to avoid credit card debt, but it's also the responsibility of lenders not to bait notoriously irresponsible people (college students, people who've filed bankruptcy) into more debt.

On a related note: Yesterday I made the last payment needed to fully wipe out the credit card debt I'd carried for seven years. I haven't felt this free in a long, long time. Thanks for the review, Dustin!

PBS ran a Frontline episode that was similar to this documentary. You can watch it for free online. It's well worth your time.

http://www.pbs.org/wgbh/pages/frontline/shows/credit/

As stated by others, too many people are living beyond their means.
My parents, and also myself, are completely free of credit card debt-- but we also don't have nice cars (mine is rusting and 17 years old), no big screen TV, cheap computers (mine cost less than 340 brand new, about 3-4 years ago) no cable, no TIVO. I don't consider myself poor.
But I have known numerous people with far less money who have far more stuff. Big flat screens, uber computers, brand new -nice- cars, stereo systems, etc etc.
In college I knew one girl who's apartment was stocked with some very swanky electronics. And while attending this very expensive school, she went and bought a -brand new- SUV (it was one of the latest models, at that).
I was aghast, and when suddenly she stopped attending school and we discovered she was living out of the SUV, unable to make tuition payments, I didn't feel remotely sorry for her. Hey, I'd like a big screen TV and an XBOX 360 and a car that I don't have to put roach traps in, but I acknowledge myself as well-off to have the necessities.
I'm not totally unsympathetic. It's hard in our culture to live within means. Credit in Western civilization goes way back. And while I am not about to defend credit card companies when their practices are immoral, unethical, and illegal, I have to say-- people, if you borrow money, you're basically selling yourself. If you owe money, you OWE MONEY. What do you think CREDIT means? It's not free money, and too many people treat it like it is.
All that said, I have been late on two credit card payments. Am I doomed?

I'm responsible my whole life, and I live within my means. I meet the man of my dreams who just so happens to have a credit card problem. So what do you do? Part of the terms of accepting his proposal of marriage included him cutting up all of his credit cards. He has held up his end of the bargain and is 100% responsible. A changed man if you will.

I followed my heart, thinking "we're in school now it will all change once we're working." Well, we're working and it hasn't changed. It's depressing as hell. We are both professions busting our asses and live well within (read: below) our means. But we still aren't straight from his debt.

So all of his toys that he had when we met have now been tossed by the way side and we're still paying off the debt accrued in purchasing them. We'll get there but I don't think when he was 21 buying big screen tv's he ever considered that his future wife would have to stay late at night, work hard for her yearly bonus to try just to make a big dent in his debt.

I'm not bitter. But do I think this documentary should be mandatory viewing for college freshman???? YES!

Finally, for better or worse, a scary movie that does just that: scares the sh*t out of you, as opposed to other supposedly scary movies. But I just finished watching that Frontline show, and much thanks to 'e-' above for sharing that. If 'Maxed Out' is too much scarier than what I just saw, I may need to pop a Xanax before seeing it. And I really wish I were joking.

For the 1st time since I bought my home over 6 yrs ago, I bounced a mortgage check by accident last month. I've got one 'debt card' (nicely put earlier)I haven't used in over 2 yrs but still make monthly payments on a now-under-$2000 balance.

As if I haven't had enough to be paranoid about, now I gotta worry about Bank of America kicking my 'deadbeat' ass because I slipped up on its CitiMortgage pal's monthly take.

Credit cards and outrageous interest rates have always been a mostly no-win situation, and I'm just as guilty as most who have gotten into debt realizing that. But to be hit in the face with the reality that these companies actually WANT you to be delinquent in payments, and that they only fully succeed in their existence by slowly and deliberately bankrupting you, it's enough to make any decent person sick.

I love documentaries, and used to love scary movies when they were actually scary, but mixing the two together can make for one hell of a disturbing experience.

Apparently in Germany it is illegal for ANYone to charge more than 20% interest for any kind of debt (even loan sharks).

20% is more than enough for all legitimate purposes. I'd definately promote introducing this law to the rest of the world.

Use Amex. The original card, not the credit card. You absolutely, positively, have to pay it back within 30 days of the statement, because it's not a credit card, it's a charge card. I use mine for lots of things, but because I know I *have* to pay it back within 30 days I never spend over what I can manage.

By the way, Chris D, that law in Germany is common in most countries. Where the scumbags get rich is charging "late fees" and penalties in addition to interest. Technically, they're not interest, so they're not caught by the law.

There are so many interesting ways credit card companies can screw you over, and not just people who ovecharge. Certain states tried to implement caps on interest rates for banks and money lending institutions, so what did the companies do? They moved there business headcourters to a different state. 'cause then they can still charge you more in the fine print.

I get so very irritated with these companies because they go after people who dont have very much. The biggest demographic they get money from is the middle and lower middle class. And they wait until people are in trouble before they start to come after them. Which really is not okay. Did you know that if you failed to make a late payment immediately on a BLOCKBUSTER VIDEO card it can be applied to your future interest rates. It is really messed up.

The fact that you the consumer sign a waiver stating to obey certain restricitions but acknowledge that the credit card companies can change your plan, interest rates, etc. at will seems highly illegal.

Anyway, thanks for listening to my rant.

I use my credit card for everything - I get points, and with a job and computer banking to make paying it off every month super easy, there is very little danger of late payments. So far I've racked up a free vacuum, several hundred dollars cash back, free meals at many restaurants, Banana Republic gift cards, and a really nice silverware set. Not to mention the hundreds, maybe thousands of dollars in free interest for the 30 day loan month in and month out, while my money (always enough to pay off what I buy!) sits in the savings account making a bit of money. Two or three times, years back (before computer banking), my payment was a day or two late - but a simple phone call and they revoked the late charges and the finance charges.

Recently, though, I got into a situation with a free trial subscription to Time magazine - they were supposed to send me a bill after three months of free trial, which I was to send back with not interested on it... of course, I never got a bill, they tried to charge my card, but I had just changed the number (which I do every couple of years), and couldn't so of course I got a phone call saying my subscription was being stopped. Fine. Then I got a single letter from a collections agency in Florida saying it was the "SEVENTH NOTICE" and I was in all manner of trouble for the $23 I supposedly owed for the "free" trial. Then I got five or six more letters the next day. (Notices 1-6 maybe?). Anyway, sent off two emails - one to a friend who knows someone at the state attorney general's office, and a second to Time with the contact information of and copy of my letter to the attorney general's office... they stopped bugging me that day, cleared the debt, and so far there have been no buggles with the credit report. But I wasn't going to wait around for my record to be screwed with - hit them back hard and fast with legalese.

Yeah, even the strictest, most self-disciplined individual who believes in personal accountability would want businesses to be run with at least some legal regulation. Despite the debt the nation as a whole racks up, recent legislation usually favors the credit card industry because it has loads of lobbyists. Remember when Bush signed the new bankruptcy laws that were more strict because credit card companies told the gov't there were debt abusers?

Well, the number of bankruptcies went down for a while, but soon they were back on the rise (within a year). A survey conducted by the National Association of Consumer Bankruptcy Attorneys stated that they found that about 97% of people who filed for bankruptcy had legitimate problems beyond their control. The only thing that these new laws did was provide more paperwork and hoops for consumers to jump through. Predictions are set that 2007 will see even more of an increase in bankruptcies that will exceed the numbers BEFORE the new laws were signed in.

And a lot of this is happening because of all the practices posters have described above. Even though companies moan about all the debt abusers, they will still make HUGE profits off of late fees, other penalty fees, double cycle billing, low minimum payments, and really, really random contract terms (like raising your interest because you were late in paying for an unrelated bill!).

Amen to the commenter who said, "Do you think the card charges itself?!?"
If you can't stop using your credit card, hide them or cut the damn things up. You only need two or three major cards to maintain good credit. I understand not wanting to carry a wad of cash, but there's no reason to have more than two cards in your wallet. Put the others away and cycle them.
NEVER get store credit cards! That 10% you save by opening an account at Target/Sears/Hot Topic is not worth it!
College kids...it's OK to sign up for credit cards (how else are you going to build your credit?), but know what you are getting into, or they will come after your mom and dad. Not fun.
People living beyond their means get what they deserve down the road...more home foreclosures for the frugal folks to snap up!

Just reading this review makes me happier than ever that I never got a credit card in college. I used to be tempted by the offers I'd get in the mail and considered one for "emergecy purposes". But I knew myself well enough to know that eventually it would be an "emergency" to hop onto the train to NYC and buy records or clothes. As a result of this I wasn't able to get a credit card until muuuuch later on (2000 to be exact) and I hated it. I hated that I had to pay a bill for something I purchased weeks before. I ended up paying it off and cancelling it.

I also saw some examples in my family of crazy credit card debt and the misery it brought. So I was always wary of having one to begin with.

i have a couple of credit cards, always always always pay that monthly fees ON TIME, don't ever be late, those assholes will take you for a ride, charging you a late fee, an overlimit fee and the monthly payment...very annoying. the computer i just purchased was on credit as well but i had no choice, i needed a new one five months ago. so im screwed with monthly payments of $100 or more a month. oh well...ill live...!

So your family is irresponsible and so are you. That means I should watch this documentary? Because you were stupid enough to want credit in college when you didn't have a job? Because you wait to long to make your payments? Sorry, but I'm not a fuck-up like you. The credit companies don't have me over a barrel.

Ali, welcome to WA mortgage hell - I just signed myself up last year :o)

Who would've thought there'd be another Perth girl perusing Pajiba?!

And btw, only just yesterday I ripped up yet another "increase in credit" letter from the bank...

"I think you're missing the point, Dan."

I get the point; I just have a different take on the solution. I live in a small city that has several Navy bases. The Navy has a huge problem with the predatory lenders (Payday loans) that target the naïve young sailors and their families. These are bright people that maintain and operate some very sophisticated equipment but somehow didn't get the message about money management. The Navy has taken two approaches to the problem. The first is to pressure the businesses to not target sailors and their families. The second is to educate the sailors. Approach number two has proven to be more effective.

"Dan, I see your point, but I think you're being unduly harsh here."

Harsh? I was going for edgy. But seriously, I like to think that I take the tough love approach. I understand how debt can be overwhelming to someone and can lead to other serious problems. But the truth is that it is easier to fix yourself then to fix someone else and realizing that where you are today is the result of the sum-total of all the decisions that you have made up to this point is the first step. Blaming your parents, spouse, boss or the credit card company may be what is keeping you from finding your way. In conclusion, one more pearl of (cliché) wisdom: Money is not the solution to money problems. Thanks Pajiba for the fourm.

I will definitely check this out.

I own a mortgage company in Portland, OR. I see literally 100's of credit reports every week. The national average of families owing $9k, I can definitely say from first hand knowledge, is on the conservative end.

Frontline already did this documentary.

But if Maxed Out, as reviewed on the ultrahip Pajiba, can take what Frontline already taught us and put it in front of college kids and the poor, so much the better.

I could go on and on with my own personal anecdotes, but whatever. We've all been (or will be) 18-22. My stories are like yours.

Magic words for you:

Fair Debt Collections Practices Act

It's a federal law that puts some constraints on the collectors. The thing is, you, the consumer have to hit them with it before it kicks in. If they call you, tell them they have to stop or they will be in violation of the FDCPA. They can still send you letters, but they will have to stop the calls.

Most folks don't know this. There are pretty heavy fines for collections folks who violate the Act, but you have to tell them to stop.

Oh, exactly. There's a pretty fucked up collection agency in SoCal - I have inexplicably forgotten their name, which is pretty odd, given the nightmares they gave me for awhile - whose tactics are in violation of nearly every aspect of that Act. You know, like harrassing my mother, my then-fiance, my SON, calling me at work and home, demanding from my coworkers that they put me on the phone, demanding that my family members give up my cell phone number, separating my collections account into TWO so that they could charge me dual interest (which, by the way, was about forty percent EACH), and so forth. Despite my demands that they cease and desist.

[By the way, the account that was turned over was a $230 medical bill that was turned over *immediately* after it was billed, which I tried to get straightened out with the doctor's office, but it was already too late. Lest anyone - ahem - tell me I brought it on myself.]

Bear in mind, I was PAYING THE BILL. The reason she was harrassing me is because she wanted the entire bill, plus about $300 in additional interest, at once. I refused. "I will send you what I can. You are welcome to turn it over to an attorney's office, with whom I will settle immediately for about 30% of the original debt, if it's worth it to you to incur the legal expense of suing me. Otherwise, you'll receive a check from me every month and that's that."

The last time I spoke with them, I pointed out to the barracuda harrassing me that she was in violation of the Fair Debt Collections Practices Act. She angrily informed me that was not the case, that I was mistaken. "I am in violation of nothing!" I calmly informed her that she certainly was, and that I would be happy to send her a copy of the Act with her violations marked in highlighter if she'd like me to.

I have not heard a fucking word from them since. Not a WORD.

I continued paying on the bill until the original debt was paid off (which took all of three or four months). The interest they charged me is still sitting on my credit report, but we're two years in. I'll take the hit on my credit for another five years; there's no way I'm sending them a dime.

I was pretty amazed at the people on the frontline documentary who had credit card debt that they were paying two figure interest on, YET they had money in their savings account (obviously not earning two figure interest) that they COULD have paid their credit card bill with. But they didn't becuase they had to have a nest egg in case someting happened, you wouldn't want to have to rely on your credit card in an emergency. Credit limits aside, this is obviously natural selection against stupid people.

Credit card companies are kind of like liquor stores. Yeah, they often push their products on people who are abusing. Yeah, they are partially responsible for a lot of damage and in some cases even death. And yeah, their "best" customers should probably seek professional assistance.

But there's nothing wrong with credit card debt if you can manage it. I left college with a lot of credit card debt. Over the past few years, I've managed to chip away at it and I'm getting ever closer to being debt free (save my student loans and mortgage).

Some companies really screwed me over (I'm looking at you, MBNA). But so did a bank that I had a checking account with for a few years.

Now I manage my credit card debt, and it's paying off. I have a card that gives me 5% rebates on gas from certain stations and another that gives me 5% back on grocery store and pharmacy purchases. My Discover card has 5% back on a bunch of things (if you can keep track of their current program).

Most importantly, when my old car crapped out on me and I went in to buy a used Civic I was given an auto loan interest rate of 9.9%. I was able to transfer nearly the entire price of the car to my empty Citi card with a guaranteed interest rate of 1.9% for life. That's lower than the average rate of inflation! And more importantly, it allowed me to assume ownership of the vehicle and reduce my insurance premium as a result.

Credit cards can be very bad--and for many people they are. BUT if you're capable of managing them they can really help you out. They helped me get a college degree, helped me get better paying jobs, and continue to help me save money on stuff I buy everyday--5% at a time.

I don't buy the "credit card for emergencies" line. Really, that is what an emergency CASH fund is for. Instead of a credit card with a $2000 limit, I saved, over a period of months, the $2000 in cash. Funny thing is, ever since I had my emergency fund, I haven't had an emergency. It's been 5 years....

I also don't have a credit card, and I bought a house last year, no problem.

Theruts, some people simply don't make the kind of cash that permits for savings. I know these are the same people who probably shouldn't have a credit card, but I've certainly been in a position (graduate school w/ a pittance for a stipend) where I was simply too strapped to save. There are lots of people in this country in incredibly precarious financial situations. As the documentary points out, these are precisely the people that credit card companies prey, yes, prey on.

You mentioned that you saved $2K over a period of months. The nature of an emergency is such that it springs up on you - a broken ankle, a trip home because of a death in the family, etc. As for your never having had an emergency, well, that's just dumb luck. Neither have I, but I still believe that others do have such emergencies.

I know everything's worked out for you, and I congratulate you for it. That said, just because you were able to buy a house w/o a credit card doesn't mean that others haven't had legitimate problems getting a mortgage for lack of credit history - sometimes, a credit card is the only way to get such a history.

Why are so many people afraid of credit cards? I can understand the concern, but they're not that different from alcohol, or cars even - used in moderation and responsibly, they can be a good thing. Used carelessly and out of control, and they can very possibly screw up your life.

The only real difference is that you need to take drivers education before driving and you can get credit cards before you can drink. Well, that and a spending binge doesn't give you a hangover in quite the same way.

Yes, they want to bugger you as soon as they can, but when you're in the clear, it's up to you to stay that way.

I am 22 years old and have decided that I never want a credit card. My fiancce's mother owns 6 credit cards and I have basically watched it ruin her life.(she also owes me 23,075 that I had inherited and was supposed to be for college). I would rather save emergency the old fashioned way of hard work. She also currently has a 15,000 bill that was orginally supposed to pay off her credit cards at 25% interest rate, since she only pays the minimum balance each month a total of 350$, only 14 dollars actually goes off the amount each month. She maxed out the credit cards again after paying them off so she is basically screwed. The only reason I loaned her money is because I felt like I had to , she is very good at guilt tripping people.