Guilt Trip

“Are you like the Suze Orman of New England?” queried a producer at Fox News Chanel. Absolutely not…I don’t want to be one of those types who only lectures about the evils of credit card debt or is defined as a finger-pointing debt cop. I want to talk about a variety of issues in the financial world—investments, estate and tax issues. After reading David Brooks Op-Ed in yesterday’s New York Times, I felt guilty for that sentiment.

If you did not happen to catch it, I urge you to do so (“The Great Seduction” at http://www.nytimes.com/2008/06/10/opinion.) It is a cogent argument for eradicating the culture of debt that has developed over the past thirty years. Brooks notes that “The social norms and institutions that encouraged frugality and spending what you earn have been undermined.” After reading the column, I felt guilty for not doing more to help fight the battle.

Yes, I emphasize the evils of credit card companies, the modern-day equivalent of legalized drug pushers. But like my friend who is a doctor gets tired of telling people to stop smoking, I grow weary of delivering what I think is so obvious: consumer debt is the equivalent of termites in your house: no matter what time of day it is, those little critters eat away at the foundation of your financial life. But more work is necessary.

Brooks cites a think-tank report by the Institute for American Values called, “For a New Thrift: Confronting the Debt Culture,” to help underscore the problem. “Between 1989 and 2001, credit-card debt nearly tripled, soaring from $238 billion to $692 billion…By last year, it was up to $937 billion…the transformation has led to a stark financial polarization. On the one hand, there is what the report calls the investor class. It has tax-deferred savings plans, as well as an army of financial advisers. On the other hand, there is the lottery class, people with little access to 401(k)’s or financial planning but plenty of access to payday lenders, credit cards and lottery agents. The loosening of financial inhibition has meant more options for the well-educated but more temptation and chaos for the most vulnerable.”

It’s time for me and all of the people in my industry to recommit to sound the alarms of the debt crisis and to remind the lottery class of all that they can do to improve their lives. Like pounding the anti-smoking message day in and day out, we can create a social movement that helps people see all that can be gained by changing hard-to-break habits.