Thoughts on Becoming Consumer Debt Free
February 27th, 2008 by Ana
I started thinking last night about how big of a deal getting out of debt except for my mortgage truly is. And the question came to me: WHY? This was considered the “normal” way of living not too long ago. Now I am considered “weird” in an America that has credit cards and car loans and every other kind of loan imaginable (and many I simply can’t imagine!).
Back in my grandparents’ day, it was considered an embarassment if you couldn’t pay for your things outright. Yes, people went into mortgage debt, but they paid for their cars in full usually. If you didn’t have the money, you either got things from family or went without … and my dad tells stories of going without when times were hard because Grandpa was too proud to go on public assistance for food even. Mom grew up on a farm, so they were never lacking for food, but she tells of going shoeless over the summers when she was a kid.
So just what changed American life so much in the past 50 years?
Was it television? I’ve heard some folks say this is “the most marketed-to culture in the history of the world.” (Another Dave Ramsey quote for those keeping track.) But advertising isn’t a new phenomenom. Abraham Lincoln advertised when he started practicing law. If it is advertising and marketing, how has it changed significantly in past 50 years to make such a difference? Just when did all the credit card and loan commercials first appear? Because I can vaguely remember the commercials for when Bank Americard changed its name to Visa … yes I must be old! LOL I can remember the advertising blitz when Sears came out with Discover card.
I may have grow up watching way too much TV, but I hardly ever watch televison anymore. In fact the only time I do is in between delivery runs at work since the pizza shop has two TVs on for dine-in customers. I do listen to radio quite a bit, and debt is marketed on that medium as well … even during commercial breaks during Dave Ramsey’s radio show!
Of course, there is the interesting little fact that the very first ever credit card started up 52 years ago: Diners’ Club in 1956. Debt is a product, and always has been to some extent. But now it seems different. Now debt is marketed as the solution to anything and everything. It seems every single commercial break during prime time has at least one credit card commercial.
But the question still lingers: how could attitudes change so quickly for my parents’ generation, the Baby Boomers? How could we go from a “save up and pay cash” mentality to a “charge everything and be in debt up to your eyeballs” culture? And even more importantly: is Dave Ramsey’s popularity (and others like him) an indictaion that the pendulum is beginning to swing the opposite direction?
I honestly don’t know the “why” or “how” of this. I just know that becoming consumer debt free has made me a statistical anomaly now. I am enjoying being such an anomaly as I drink my coffee on the first morning in many years that I wake up debt free but the house. But the question still lingers in the back of my tiny, caffiene-fueled brain: Just how did this seismic shift in attitude happen?
Posted in debt |
February 27th, 2008 at 10:54 am
People generally just follow the herd, that’s how it can change in a generation. The marketers who are incredibly good at their jobs tell the populace that everyone is in debt, and you’re normal if you buy the things you like even if you can’t afford them. People don’t want to ‘not fit in’ so they follow along.
February 27th, 2008 at 1:08 pm
Hey I’m in debt… join me as I pay it off
February 27th, 2008 at 2:50 pm
Very good question.. I never really thought about it. I’m anxious to read when other’s think it happened.
February 27th, 2008 at 3:01 pm
Jen, I am looking forward to hearing other’s input on this also. We’ve heard from Traciatim … anyone else? Or did I ask the proverbial “hard question”?
February 27th, 2008 at 4:28 pm
Congratulations on being a statistical anomaly! I always enjoyed being over 3 standard deviations above or below the mean. LOL
An interesting history of debt can be found on the I Hate Debt website www.ihatedebt.com
Live long and prosper, Ana! (Holding up my hand in blessing with the Star Trek split fingers gesture.)
February 27th, 2008 at 7:52 pm
Very thought provoking. I think another aspect of this is that since everything is so immediate and 24/7 these days, we want instant gratification for everything… and all the forms of debt you can bury yourself in these days make that possible. “No credit, bad credit, no problem!” Ha.
February 27th, 2008 at 7:59 pm
My wife was telling me at dinner tonight. Saving money is getting more and more popular. She has seen Oprah shows on it etc…..
Go figure.
February 28th, 2008 at 7:30 am
I don’t think Dave Ramsey is so popular. Sure, he’s hugely popular compared to the average finance-book-author, but ask the average person on the street who he is, I bet they have no clue. And I bet they can tell you who Paris Hilton is.
I think as the divide between the “wealthy” and the middle class got bigger and bigger, and the “american dream” got more out of reach for the average person, debt became a convenient solution. Not a good solution or the right solution but convenient.
February 28th, 2008 at 12:01 pm
PaidTwice, I think the “average person’s” ability to recognize Dave Ramsey’s name depends heavily on WHERE you ask. Here within an hour’s radius of Nashville there is heavy name recognition. He also has billboards in major cities like Atlanta, Kansas City, Louisville (where I first saw the billboard!), DFW, Houston, Grand Rapids, and I think I saw one in Indianapolis last time I was up there. I know he just got picked up by a radio station in my old hometown of Fort Wayne as well (meaning there IS hope for Mom!).
As for the attitudes mentioned by everyone, I think these are all valid points that we as a culture need to take a hard look-see at.
Going Gazelle: If Oprah can get regular folks to think saving money is popular, then I am for that. Not that I’d start watching her show myself…LOL
And liz: don’t bait my inner sci-fi geek!!! I’ve been trying to keep that off my blog to avoid descending into total nerdiness here!! (must resist… must resist… Aw heck! Peace and Long Life to you! as I return the gesture)
February 28th, 2008 at 1:28 pm
My mom is a Boomer, but she has the “old school” mentality when it comes to money. Her house is paid for, she’s never had credit card debt, and her car is free and clear. She has savings and was a teacher, so her retirement is set. She has always been “weird.”
Now, I’m the anomaly. I was taught all of the values that my mom still uses, but when I got to college and discovered credit, I went buck wild. I took out student loans, car notes, and racked up credit card debt. What finally woke me up? My husband and I were sick and tired of being sick and tired.
Dave Ramsey is a throwback to a bygone era that seems to be gaining “buzz” (much like the Hollywood stars now dressing like those of the ’40s). People are tired of being in debt and having no money. His popularity is a direct result of that. Yeah, it’s all common sense, but common sense hasn’t really been common since the WWII era (when the Boomers started arriving).
I’m glad being weird is becoming cool because I’m as weird as they come!
March 27th, 2008 at 11:17 am
I believe it’s all about timing.
Having a credit card debt when you’re studying because you’re low on money, and having a positive outlook after graduating, yes, I don’t see it as a big deal.
However, usually people keep spending money a few years, enjoying the extra cash… but after that, they usually stop somewhere when the debt is at a certain leve. From that moment onwards, they live their lives the same as somebody without a credit card debt, with the only difference that they have a huge debt to pay off!
March 29th, 2008 at 10:49 pm
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