Passing Debt

The so-called ‘debt counseling’ industry is a vexing parasite reliant on the gullibility of the irresponsible. Perhaps some people are too simple to understand the concept of credit. Maybe though, it’s that many people who find themselves in trouble financially as a result of credit default are just careless and willfully disregard the terms of the contracts they sign in order to pretend that they didn’t understand. People looking for excuses for their own bad decisions find their match in credit counseling which is often paired with deals to restructure their debt, which is just another term for allowing deadbeats to circumvent their financial obligations under the auspices of victim-hood.

One advertisement states that mortgages should be illegal because they rip people off. This claim is then elaborated on; that over the course of the loan it will cost as much as the cost of the home in interest and fees. Anyone who has secured a home loan, who can also read and do a little math, understands this and it is a bitter pill to swallow but it is what it is. The length of a home loan is typically thirty years. There is no entity that can lend the cost of a home over that time without charging for it. Because of inflation that initial outlay is not worth what it is today thirty years from now. There is an option for those who do not want to pay the cost of borrowing, don’t. Save up and purchase whatever it is outright. Ignoring reality and demonizing the mortgage mechanism may be emotionally satisfying to the self indulgent but it is a complete misrepresentation.

Another advertisement encourages listeners to call in order to learn ways to handle their debt. They should call because of the advertised firm’s years of experience helping people figure out how to get their debt under control. How difficult is it really to understand that the way to handle debts is to pay them off? That if a contract is signed requiring payment for some service, in this case the lending of money with binding payment terms, that is has to be paid back? Credit counseling allows the utterly irresponsible to feign ignorance at the expense of the prudent.

It isn’t the fault of the banks for lending money within boundaries regulated by the federal government. Unfortunately, in an era where individuals are judged on the impossible to articulate such as ‘intent’, irresponsible borrowers are not held to account for their transgressions. That’s because it is easier to blame a faceless corporation than take responsibility.