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Are your credit cards maxed out? Then watch Maxed Out.
By Anita |
I watched the documentary Maxed Out this afternoon. I recommend that you put it in your Netflix queue right now if you want a behind-the-scenes look at the evils of credit card companies.
Here’s a preview:
One of the most disturbing parts of the documentary was learning how credit card companies prey on college students. The very first day of class they are there in their booths, issuing credit cards to students who are only working a handful of hours a week and don’t have the money to make payments.
The credit card companies make a killing on these students, of course, and pay universities millions of dollars so that they can put the university’s name on the credit card.It’s not unheard of for college students to commit suicide over their credit card bills. Mothers of two students who committed suicide told their stories in the documentary and I was reduced to tears. They spoke before congress to try to pass a bill that would have prevented credit card companies from preying on college kids.
Did congress listen to them? Nope. Executives from all the major credit card companies were there to make sure that didn’t happen.
You’ll learn about how creditors make money even when loans go into default.
And you’ll hear from a Harvard professor who was invited to speak to a group of executives at a credit card company about bankruptcy. She explained that if they carefully screened the weakest customers before they became customers then bankruptcies would decline by 50 percent.
Sounds good, right? Apparently not. The head honco eventually spoke up and said they make almost all their money from the weakest customers so they won’t be making any changes.
Argh!
Anyway, go watch Maxed Out. You won’t think about credit cards the same way again.
Topics: Credit Cards |