Posted by MikeC/NY on 7/6/07 10:46pm
Msg #198789

OT - about all that debt...

If you're at all interested in the topic, I highly recommend the documentary "Maxed Out", which is now available on DVD (got mine through Netflix, I'm sure Blockbuster has it also). It mostly focuses on credit card debt, with a little bit about predatory lending - it's a very sobering look at the credit industry, and helps explain some of the wacky loans we see.

There are some segments with a definite political agenda. If you ignore those, I think it's well done and a definite eye-opener...

Reply by Elizabeth Soliday on 7/7/07 2:56am
Msg #198808

Hi Mike, I looked at some reviews on the movie. What gets me is that people don't bother to get educated about what they get themselves into. Yes, there are always some ethical issues in the advertising, etc. but - to me personal responsibility outweighs "getting out" of a poor choice.

I screwed up my credit really bad when I was about 19. I signed a fitness contract for like $2500 for 3 years then had some doctor bills that I just didn't pay. A few years later, I got married and tried to negotiate with them to get them paid off. Never did end up paying them because they always asked, "where are you?" and I hung up I paid every obligation since then though and after 7 years (when the garbage on my credit got dumped) had perfect credit. It can take awhile, but my advice to them is you got in...now get out!

I don't think Bush tightening up on people filing bankruptcy (mentioned in a negative tone in the review I read) is a bad thing because we all pay (somehow) when someone files bankruptcy.

RESPA requires a good faith estimate be provided to the borrower on first mortgages within 3 days of loan application, there is no excuse for not knowing what you are getting into. The Notice of Right to Cancel states that the lender is required to return all fees to the borrower if they chose to cancel (I read the RTC at my last signing). Many of them don't realize that they can cancel the loan if they really want to and not be out hundreds or thousands of dollars. As long as the lender will loan them anything, they are getting a chance to fix their spending problems in my opinion.