Credit to Debt to Carefree

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Monday September 14, 2009 · 12:04 PM PDT

2009/09/14 · 12:04

Sounds like a bad infomercial. Or sounds like an angry citizen who took direct action.

Apparently one woman owed around $6,000 to Bank of America, who had upped her rates and fees because of incomplete payments. Instead of working with the company, she posted a YouTube video calling for a "debtor's revolt" and has stopped payment on her credit card debt.

This raises interesting questions - relevant for me. I had the same epiphany a couple years ago.

At 18, I was issued an American Express. As a poor guy, just in college, it seemed unreal to own a credit card. Money! Mine! Sort of. It was quite a gamble for AmEx, and it paid off. I kept my balance low and paid it all off before closing the account. I moved. I got two more cards, with higher limits. I was under 21. I had no long-term job or constant income. I got in over my head.

With a few thousand racked up, I quit payment when - with one missed payment - my APR skyrocketed and I was docked with fees and penalties. I couldn't in good faith keep my side of the contract; the creditor started to look like a thief. Further, I simply didn't have the money. Yes, I had lived beyond my means. But could I have paid it off over time, without penalty or exorbitant interest? Maybe.

I still don't have the money - nor any immediate need for credit. I am not paying, cannot, and do not intend to. I think sometimes, perhaps I am part of the problem. The meltdown. But Bank of America's gamble on my creditworthiness did not pay off. They were rewarded - and I have a low credit rating. Who pays? Chicken or egg?

So what are your thoughts? Is denying creditors payment worthy political action or usurping individual responsibilities?

I should note the woman in the YouTube video appears to be right-wing (she doesn't like the feds either); but perhaps this issue crosses party lines. No one bailed out our risk. Big companies prosper despite us. I don't want to be a part of the problem, on either side.

Poll
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Is the woman in the video right in her actions?

Yes.

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Is the woman in the video right in her actions?

Yes.

35 votes

No.

26 votes

I am not sure.

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3 votes

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