How it all went wrong.

Voyager2002

This article
http://money.guardian.co.uk/creditanddebt/creditcards/story/0,1456,1529921,00.html
tells the story of one person who escaped debt only by suicide. It goes on to analyse the behaviour of the banks and credit card companies, and ends by interviewing the man responsible.

Compulsive reading!

[Deleted User]

Unfortunately Mr Cullen's difficulties were compounded by the fact that he felt unable to communicate his problem - to anyone - until it was in too deep. This is also true of other similar reports which have hit the headlines.

In my experience as a debt counsellor I noticed how different generations treated money differently. Older generations simply left all the money and finances to the 'man of the house'. Older women were brought up to do this - and despite times having changed, continued to do this.

This placed, and still does, huge psychological onus on the 'man of the house' to get it right and to not be seen as failing to provide, or failing to deal with the finances, or simply being a failure.

Younger clients tended to be more in disagreement over money - to the point of being selfish. 'It was my money, so I spent it how I saw fit' was an often heard comment.

The main problem leading to the debt, was not the spending - it was the sheer lack of communication between the adults in the household.

Many people in debt, whether severe debt, or minor, simply cannot bring themselves to communicate with anyone about it.

Which is why this board is so important.

Debt is NEVER worth giving your life for.

The first step in getting help is COMMUNICATING your need.

If you feel you cannot post on this board or communicate with loved ones about your debt - consider going to CAB, or even phoning them to start with, (or any other FREE debt counselling agency).

If you are feeling desperate you can speak to the Samaritans on 08457 90 90 90

Xbigman

Voyager2002 wrote:

Compulsive reading!

You're not kidding.
Regards



X

Malestrom

Thanks to the OP for posting the link to the article, very interesting reading and sad in so many ways.

ITFC

What a tragic case.

I am constantly bombarded with pre-approved offers and it frightens me to think how much credit companies are willing to offer.

I hope people who read this can learn from it.

margaretclare

Deleted_User wrote:

Older generations simply left all the money and finances to the 'man of the house'. Older women were brought up to do this - and despite times having changed, continued to do this.

Not all of us, thank goodness (I mean, not all older women or older men).

I agree with you that COMMUNICATION is the key to everything. Whether it's dealing with debt or anything else - communicate, communicate, communicate!

Aunty Margaret

horace_2

It is sad that this man took his life but one cannot lay all the blame on the financial institutions.

He took a loan of £4k which turned into a whopping £130k in six years. Come on chaps, he was spending other peoples money without a care as to who would foot the bill. I wonder how many cigarettes he smoked a day?

Malestrom

Firstly horace, we aren't laying all blame at the feet of the financial institutions but they have to accept some responsibility for the atrocious lending that eventually led to this mans death. TWENTY TWO credit cards! How can one person on an average income be accepted for twenty two credit cards?

Secondly, your statement that he was 'spending other peoples money without a care in the world' is both incorrect and incredibly heartless. If he didn't care, he wouldn't now be dead, end of story.

DrStep

The young man at the bank today - always looks at the screen and sees the POSITIVE BALANCE and asks me would I like a loan or credit card - I smile and go "no thanks"

He says to me - "I have to ask, or I get into trouble"

Well there you go.....

youngandreckless

This is so sad and I expect that if things carry on this won't be the only heartbreaking story we read. I got my first credit card at 18 and my wages were bumped up by the rep to get the application through. I accept that I spent on it with my own free will, but can't help feeling cross that I was allowed it when my income was not capable of coping with what I could spend.
Financial management is vital as you move into adulthood, but who teaches us about it? The very people that benefit! I think the government should make money management as part of the curriculum along with career guidance, sex education and the like that are there to make the "real world" easier. That way at least people will know how to work with interest rates etc and if they decide to borrow, do it with their eyes wide open.
My heart goes out to the Cullens x

ManAtHome

The telling point in the article was how much lenders have changed in the last 30 years. I remember having to see the bank manager in the 70s to get a loan around 1/4 of my income, now it seems you can get over 10 times income with minimal checks.

It's all very well to blame the people who over-borrow, but the problems we've seen in the news and on MSE are more often due to some traumatic event like illness or redundancy. At one time, the financial institutions ensured that we were sensible, now it's purely about short-term profits and bonuses. These people seem to be actively pushing 'credit' (ie debt) even when they are aware borrowers are in trouble - at least morally repugnant, should be a criminal offence imho.

Unfortunately, our 'stable/growing economy' is largely based on growing debt (GB, prudence, bo**ocks) so we're likely to get a few umms and aahs, a few more long quango lunches, then it'll be all our fault anyway. I do feel sorry for the Cullens (and others) and would hope that the finance industry is struggling with its collective conscience, but somehow I doubt it.