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So my friend Damon Day and I have this conversation all the time about how the entire debt world is all bullshit. It’s a very true statement, unfortunately. Until now I wasn’t sure how to broach the subject on the site. What the hell, let’s just jump in deep.
The fact is people who are panicking about their debt are ripe for the picking by people of all walks of life who want to manipulate them for their own reasons. This leaves consumers thinking the person they are talking to is trying to give them the best advice. It’s all bullshit. The truth is 99% of people are just trying to sell something, not be great advisors.
People misguidedly think they can get independent best advice for someone that sells some specific debt intervention product to help them get out of debt.
People are looking for some magic program to make their debt vanish without consequences. It’s all bullshit.
In case I’m not being direct or clear enough here…
It’s All Bullshit
Let’s be real here. Everyone that is selling you anything other than independent advice about what might be best for you is pushing their widget and not taking the greater view of what is best for you.
If you honestly think a commissioned debt relief salesperson is going to tell you the solution they are selling isn’t right for you and direct you to the better option they don’t make money selling, you are deluding yourself.
This is why credit counselors hate debt settlement people, debt settlement people hate credit counselors, and they all hate bankruptcy attorneys.
Everyone, including the majority of nonprofit credit counselors are just trying to push their widget and make the sale. I don’t give a damn what people will say in public, in private they confide it’s all about the money. It’s all bullshit.
Debt settlement companies keep jamming anyone with a pulse into extended repayment programs that destroy retirement savings and set people up for getting sued because they are trying to sell the program and make the sale. It’s all bullshit.
“Our program is perfect for you and the best choice,” said the debt relief sales person.
You want to know why that’s the case? It’s because you called.
Mortgage modification companies and sue your lender “law firms” want you to spend thousands to buy their package, not because you will actually win, but because they want to make money. It’s all bullshit.
Credit repair companies want to sell you packages to remove bad credit and dispute items on your credit report. Something you can easily do yourself. But they don’t tell you that. It’s all bullshit.
Student loan assistance companies want you to pay them monthly for something you can do yourself for free. And you know why by now don’t you. Yep, it’s all bullshit.
And even some bankruptcy attorneys actually push people into a chapter 13 bankruptcy which will take five years because they can finance their bankruptcy fee and do a no money down deal. Yes, there is bullshit in bankruptcy as well.
Make Them Feel Guilty to Close the Deal
Sellers of debt help pile on the “moral” or religious argument that people have a responsibility to repay their debt. In fact most of the time it is the least moral thing to do for their future. They just guilt you into feeling like that is a higher road to sell their solution. It’s all bullshit.
Dave Ramsey lies about credit cards and bankruptcy because it feeds his schtick, not because it is real or logical. It’s bullshit.
Debt settlement salespeople will just make up monthly payments to close the deal once they’ve convinced people it’s a “good thing” to repay their debt.
“But I can’t afford $450 a month.”
“How about $380 a month then?”
It’s all bullshit.
Don’t believe me yet, Listen to this actual conversation I had with a debt relief sales person.
Get the Best Bullshit Protection
The best protection you can have from getting screwed when getting out of debt is education and logic. You need to stop and learn about the realities of dealing with debt and investigate all of the options to make an educated decision that’s best for you. Stop relying on someone else that just wants to sell you their widget.
There is no other way to protect people from getting scammed, ripped off, or harmed other then having the individual play an active role in dealing with your debt.
Unless you start to learn the truth about getting out of debt you are participating in the world of bullshit and whatever outcome you get is partly on your shoulders as well. Don’t invite bullshit. “Please sir, may I have some more?”
You can’t delegate logic and responsibility to others that have a financial interest in selling you anything.
I’m not even saying you need to agree with my point of view and advice I offer on how to get out of debt. You don’t have to follow everything that I say but you should at least listen to help protect yourself from the massive world of bullshit that is about to rain down on you.
Be educated, be smart, actively participate, ask questions, check the facts, and play a part in making choices that are best for you and your family.
If you don’t, you know what you’ll get? Yep, bullshit. And lots of it.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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I think a huge part of this problem also lies in the fact that debt education is not readily available to the masses. We teach subjects in high school like math, science, and English but nothing about finance??
How can we honestly convince ourselves we are preparing the next generation for the future if they have no clue how to manage a budget, effectively utilize credit or understand interest based financing?
I completely agree.
Under the heading of what you least expect, there has been little evidence yet that financial literacy in high school actually does protect people later on.
If anyone knows of any study, I’d love to see it.
I have had a lot of really smart, successful and wealthy clients over the years that have fallen for debt relief scams, hook, line and sinker.
Hell, I know a lot of financial professionals that have fallen for this stuff as well. It doesn’t have much to do with financial literacy as much as it has to do with a basic understanding that most debt help companies are total bullshit. They exist to sell, not to educate.
That being said, totally agree with Pete, financial literacy should absolutely be focused on in schools. If for not other reason, but to give someone a better shot at not being in a position to have to call a debt relief company.
I agree but the goal seems to be to get the financial education timed as closely as possible so that it has some relevance and context.
It’s hard to get a 14 year old excited about the advantages of a credit card over a debit card when they are not actually using one.
On one hand it’s like teaching 12 year olds to drive and then hope they are ready and prepared when they turn 16.
Some of the most basic tools to use to better understand finances and credit are basic, like read the fine print and ask questions if you don’t understand. Or spend less than you make.
What I’d like to see would be a mandatory behavioral economics class for college students to help them understand the unconscious issues that drive our spending.
Sadly, you are correct. Helaine Olen’s book, Pound Foolish, touches on the issue of financial literacy education. On p. 199, she says, “Unfortunately, despite glowing testimony from the participants, no one has been able to prove financial literacy actually works. In fact, by almost every available measure, the financial literacy of the American public has remained dismal in the almost two decades since the movement began.”
We live in an age of consumerism, spend spend spend. Just look at our government “spending” our way to prosperity. Look at the millions (billions?) spent by bankers on slick advertisments for all manner of debt. And then, the poor guy who does try to get his finances on track, gets victimized by “consumer advocates” who are “there to help” you pay your creditors. My God, does true financial literacy have a chance? Your right, its all BS.
Thanks Steve. Seriously good article. It just makes those of us who are deep in debt feel really stupid for getting this way and see no way out. I’ve got applications in to my mortgage companies ( yes plural because we had to get an 80-20 loan) and even tho we haven’t gotten te word yet I’ve got the feeling they are going to come back and say sorry you are declined any assistance. At that point we will be screwed and will have to sell and move into an apt. My kids don’t understand the entire story, they just know they don’t have as much as they did before. It really sucks when people who really try to get by without gov handouts -can’t- and pas on their bullshit to their kids. My daughter thinks she is going to get a “sweet sixteen” birthday in a couple weeks and save selling my soul I don’t see how she’s gonna get one. Thanks economy ! And thanks to my stupid mother -in-law who if she tried couldn’t care about her son one smidge. All she cares about is her daughter and her 3 #1 grandkids none of which are her 2 firstborn grandkids (being mine). So family won’t help us. Our last hope is our prayers. No to mention that the doctors will approve my husband for a transplant so we can move on and get ourselves out of debt.
Sorry and thanks for letting me rant and vent.
Well said Steve, what’s worse is when people are in a pinch and need that help they turn to a debt relief company that typically will do nothing but feed them lies that their company is helping millions get out of debt but what they never really say is we have helped million get out of debt already.
Great stuff, Steve. I really like it and all are true.
I might ask your help someday. Cheers.
Hey Steve, why you holding back? Tell us what you really think! Bravo!
LOL. Thanks.
Frank and straight-shooting review. I like it!
Note: what I don’t like is the Fb tag that is following around my reading ur article and can’t be turned off … very annoying! 🙁
Couldn’t have said it better myself 🙂