7.25.2008

...And THIS is what we aspire to?



Don't worry, this post will only take one paragraph...

"Music producer Scott Storch is facing foreclosure on his $10 million Florida mansion, according to reports.
The Lean Back beatmaker is being chased by SunTrust Bank executives for outstanding payments on the home. According to the Palm Beach Post, Storch has failed to make monthly payments on the home for nearly a year.
The paper alleges in addition to the bank, an electric company and security system are after Storch and have put a lien on the house in an effort to settle outstanding payments. Storch was recently alleged to have fallen two years behind on property taxes amounting to $511,839 for the Miami Beach mansion."


(Source)

So what do YOU want to be when you grow up? lol

@W




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7.24.2008

Tired of Rejection, Consumers Turn to Credit Companies For Approval


Photo courtesy of Todd Heisler/The New York Times

A strange thing is happening here in America. People are beginning to use credit-worthiness as a measure of self-esteem. It reminds me of a saying I just made up; Someone is always willing to give you what you want, as long as you pay for it. (Wow, I like that!)

Growing weary of being rejected for choice jobs and being denied by choice colleges, Americans young and old are trying to buy their dreams on credit. What they dont realize is that sometimes they end up paying with their life. Now hold on a minute I'm not saying they're being killed by credit directly, you should know me better than that. But what I am saying is that the stress and pressure of living the "good life" without a "good income" is taking more of a toll on us than we are openly willing to admit.

The New York Times is doing a brilliant series on consumer debt called The Debt Trap and it's as hard hitting and exhaustive in exposing the consumer debt crisis as CNN's Black in America series is in addressing the state of African-Americans in the US. I highly recommend checking them both out!

I keep asking the question "How did we get here?" And no one seems to have the answer. So I guess I'm taking it upon myself to find and provide the answer for all of you.

The more I see stories like the current one on NYT about Diane McLeod, the more I'm aware of the burden I've been given regarding the debt-free message.

Diane started out debt-free just like the rest of us, but the article goes on to explain how marriage, divorce, illness, unemployment, underemployment, wildly irresponsible spending, and now foreclosure have driven her nearly $250k into debt! Strangely enough though, she still continues to get "Pre-approved" offers from a steady stream of credit card companies, even though her credit is now decimated and she cant afford to pay her existing debts!

Here is a excerpt from the article:

"Recently an envelope arrived offering a “pre-qualified” Salute Visa Gold card issued by Urban Bank Trust. “We think you deserve more credit!” it said in bold type. A spokeswoman at Urban Bank said the Salute Visa is part of a program “designed to provide access to credit for folks who would not otherwise qualify for credit.” The Salute Visa offered Ms. McLeod a $300 credit line. But a closer look at the fine print showed that $150 of that would go, as annual fees, to Urban Bank."

Hmmm, quick question: If you cannot 'otherwise qualify' for credit, why are you still being provided with access to it?!? Greed is to blame for most of this mess. Both the greed of consumers to have what they want, when they want it, and live beyond their means as a way of "survival". And the greed of companies to sell you things you cannot afford so that you have to pawn your birthright, your values and your spiritual inheritance to purchase them.

Again, how did we get here?! What happened to our values?

I'm getting into the daily habit of reading a chapter of Proverbs. I read the chapter that matches the date. Yesterday was the 23rd and while reading I read this:

"Do not wear yourself out to get rich; have the wisdom to show constraint."
Proverbs 23:4 (NIV)

I love what this text is saying without saying it. My personal translation would say, "If you show constraint and build your wealth the right way, you will be healthy enough to enjoy what you have earned." No borrowing on credit, no loans, no get rich quick schemes.

Showing constraint in your finances is called a wise thing in this verse...

Aha, that's the answer to my question! I now know how we got here! We're not reading our bibles, duh!

Thanks for reading,

@W

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7.21.2008

@ Risk Theater: I'm A Compulsive Shopper...



I saw an absolutely brilliant episode of TRUE LIFE on MTV last night.

The episode was called "I'm a compulsive shopper" and it did a great job of documenting 2 teenage girls who have literally become addicted to shopping! I copied the episode summary so please see it below. I'll also be contacting MTV Networks to ask permission to post the full episode here shortly. It's not up on MTV.com yet but I certainly recommend seeing sometime when it airs on the network. For now here are a few photos from the show*...
All materials are taken from MTV.com*




Full Summary

It's no secret that teenage girls love to shop. Trips to the mall to find that perfect dress or take advantage of a blow-out sale are no oddity among teenage girls and their friends; but what happens when those shopping trips become a little too frequent? For Gabby and Ali, shopping has become so addicting that they are no longer able to lead healthy lives. For these girls, shopping has gone far beyond a form of retail therapy-it is their only way of life.

Gabby is eighteen years old from Queens, NY, and her life is all about what she wears. Her closet is so stuffed with clothes that she can barely see what is in it-but she does manage to find a pair of unworn designer jeans she bought for three hundred dollars with the tags still on. Gabby's mom has multiple sclerosis, so since she has always been unable to make trips to the mall with her daughter, Gabby starting using her parents' credit cards from a very young age. Now, years later, her so called "normal" use of her parent's plastic has turned compulsive, and as a result, she has put her family in about ten thousand dollars worth of debt. In order to support her shopping addiction and pay her bills, Gabby works two jobs and lives from pay check to pay check. Every two weeks simply means more money that she can spend on new clothes and accessories-and for Gabby, that means every last penny. Gabby's father, frustrated with what Gabby has done to the family, demands that Gabby see a therapist, but Gabby refuses to admit she has a problem. And besides, why would she waste a trip into Manhattan to see a therapist when she could be shopping on Canal Street? Things start to look up when Gabby finally decides she wants to start saving money. However, deciding to save money for breast implants is probably not the best solution for curing her compulsive spending habits. Will Gabby ever be able to pay her parents back for the enormous debt she has caused them? And will Gabby ever be able to remove herself from the ruthless cycle of making more money just so that she can spend more money?

Ali is nineteen years old from Columbus, Ohio, and she shops whenever she can-whether or not she has the money. She works hard on her image and figures if she keeps it up she will eventually live up to the likes of Paris Hilton or other pop divas and finally start believing in herself. Ali works the door at a strip club, and unlike Gabby who has to wait two weeks for her next cash flow, Ali bypasses the anxiety about waiting for a paycheck by taking home a nightly wad of cash. However, despite this constant flow of money, Ali still manages to run out of money, and in order to satisfy her "shopping fixes," her boyfriend, Kyle, ends up footing the bill. As a result of her constant need to shop, Ali has let her bills accumulate for the past 4 months-which means a debt accumulation of almost eight thousand dollars. While Ali acknowledges she should pay off her debt, the high she gets after a shopping spree makes it hard for her to change her behavior. Ali starts going to Debtors Anonymous meetings twice a week, and while she would like to think she is changing her behavior, she doubts if she really is-especially after she spends every last penny when shopping for her birthday. Eventually, Rent-A-Center comes and removes all her bedroom furniture which Ali never paid for, leaving Ali's room a cluttered mess of clothes. Despite this reality check, Ali still continues to shop and rack up her debt- now totally almost 15,000 dollars. Will Ali ever realize life is not just about the shopping and purchasing? And will she ever be able to find the money and confidence she needs to get the intensive therapy she recognizes she needs to get her life back on track?

Watch True Life: I'm a Compulsive Shopper to find out what happens to these two girls when they literally shop till they drop.

This show gave me plenty to consider and some ideas for topics to cover this week. I hope you'll make time to check it out.

Thanks fam!

@W

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