Review of Maxed Out
By Drew Johnson on Friday, September 7th, 2007 :: 9:16 amCategory: Drew's Corner, Videos
The James Spurlock documentary Maxed Out does so much more than explain the sad and terrifying state of the average American debtor. It explodes it on the screen, so that we are helpless but to watch the tragedy that goes on all around us.
In his film, Spurlock leads the viewer through the entire cycle of debt: from the extravagant Las Vegas mansions purchased with variable-interest-rate loans by upper- middle-class realtors, to dirt-poor folks whose government-subsidized homes were purchased by big banks like Citigroup, who then jack up their interest rates and string them along before foreclosing on them. He goes from average middle-class folks who declared bankruptcy after their business or marriage failed, to gruesome, tear-jerking interviews with mothers whose college-age kids killed themselves after racking up phenomenal debt before they were old enough to purchase beer legally.
Suicide is a strong theme in this movie: we watch people fall apart before the camera as they describe loved-ones who’ve given up under the strain of their debt. One grandmother simply disappeared after old gambling debts came to haunt her. One woman cries that she wishes she too could kill herself, but her husband already did and she doesn’t want to abandon their children.
Yes, it’s a bleak film, but as we watch these tragic stories unfold we find it appropriate. Spurlock does not sugar-coat the problem of debt in our country, rather he eviscerates it, showing us all the ugly parts that go together to form the mammoth whole.
For instance, we get a behind-the-scenes look at bill collectors, who thrive on the burgeoning debt-purchasing industry. These folks describe with glee how effective it is to call the neighbors and family of debtors to shame them into paying, and how forcing someone into paying their past-due bills is like “scoring a touchdown.”
Beyond the seediness of the debt collectors is the collusion between government and big business. When the two mothers whose children killed themselves went to Congress to lobby for a bill banning creditors from college campuses, they were met by a table of high-powered attorneys and lobbyists working for the credit companies.
Overshadowing it all is our national debt. Spurlock traces the trend of borrowing against the Social Security trust to finance government spending back to Reagan, and the constant encouragement by our presidents for us to keep spending. And who did President Bush appoint as his corporate czar? Larry Thompson, a former big-wig at Providian, a credit-lending institution that fell apart because of fraudulent practices.
The film reminds us of other old facts, facts we need repeated: Credit lenders make most of their profit from low-income, high-risk borrowers; credit lenders’ favorite customers are those who’ve declared bankruptcy, because they can’t do so again and because they’ve shown a taste for extravagant spending; and up to 90 percent of all FICO reports have some inaccuracies.
Spurlock also highlights debt gurus like Suze Orman (who’s sponsored by FICO) and Dave Ramsey, who preaches personal empowerment. But when Ramsey takes a call from a woman on the brink of bankruptcy whose husband is considering suicide, he is speechless.
Final Analysis: The debt problem in our country is huge and it’s only getting worse. For those already deep in debt, there must be some hope - a safe way for becoming debt free. Debt consolidation doesn’t work, it just moves your debt from one place to another. Bankruptcy has become very difficult since 2005, when bank-backed legislation passed making it harder to file. MyUSADebt offers you a way to reduce your debts without debt consolidation or bankruptcy. They offer a debt consolidation alternative for effective and proven debt relief.
Author Bio: Drew Johnson is an expert in the various methods of debt reduction and has successfully reduced his own debt. Read additional articles by Drew on Debt Management, Credit Management and more.
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