Anyone ever watch Till Debt do us Part?

[bjl584]

It's on CNBC after the Suze Orman show. Some of those people are really a mess and are on their way to complete financial destruction. There was one woman on there that was spending something like $3500 a month MORE than they were earning. She wanted to buy a $100K Mercedes, and the host was having trouble making her understand that she coundn't afford a $1700 car payment ontop of the debt that they already had. Unbelievable.

[disneysteve]

I have seen it. I also watched The Bank of Mom and Dad (not sure if that one is still on but you can find it online). It is hard to comprehend how people can be spending hundreds or thousands more than they earn month after month. It is even harder to understand how they can not see that it poses a problem.

[bjl584]

Originally Posted by disneysteve

I have seen it. I also watched The Bank of Mom and Dad (not sure if that one is still on but you can find it online). It is hard to comprehend how people can be spending hundreds or thousands more than they earn month after month. It is even harder to understand how they can not see that it poses a problem.

There was a gentleman on one episode that addressed this. He stated that the world works on credit therefore he isn't doing anything wrong. He said he liked his toys, he didn't want to wait to have them, and credit cards make living life to the fullest possible. Scary.

[disneysteve]

Originally Posted by bjl584

There was a gentleman on one episode that addressed this. He stated that the world works on credit therefore he isn't doing anything wrong. He said he liked his toys, he didn't want to wait to have them, and credit cards make living life to the fullest possible. Scary.

Many people live on the theory that if they can afford the monthly payment, they can afford the purchase. These are the people who buy cars with 7-year loans, lease luxury cars, buy umpteen-inch flat screens with 0% deals, etc. It is also the people who go to Rent-A-Center and sign a contract to pay $25/month for 3 years to rent a $400 TV. The fact that they will pay a total of $900 for that $400 TV just never enters their mind.

[EconoMutt]

Originally Posted by bjl584

It's on CNBC after the Suze Orman show. Some of those people are really a mess and are on their way to complete financial destruction. There was one woman on there that was spending something like $3500 a month MORE than they were earning. She wanted to buy a $100K Mercedes, and the host was having trouble making her understand that she coundn't afford a $1700 car payment ontop of the debt that they already had. Unbelievable.

It's a great show ! We watch it every Saturday night.
I saw the episode you are referring to.
That lady is living in a dream world.
Unfortunately, you know how that story is going to end.

[cjscully]

Originally Posted by disneysteve

Many people live on the theory that if they can afford the monthly payment, they can afford the purchase. These are the people who buy cars with 7-year loans, lease luxury cars, buy umpteen-inch flat screens with 0% deals, etc. It is also the people who go to Rent-A-Center and sign a contract to pay $25/month for 3 years to rent a $400 TV. The fact that they will pay a total of $900 for that $400 TV just never enters their mind.

Yep. This is the crux of the consumer debt problem. The only question people ask is "can I afford the payment". These people also have the mistaken idea that they're spending less than they're making if they can cover their monthly payments every month. They view the payments as spending but they don't view the credit card charges as spending. After all, they don't have to pay for the entire amount charged just the fraction represented in the minimum payment on the credit card statement.

The saddest part of it to me is that this approach seems to "work" until they experience a loss of income for whatever reason and they have nothing to fall back on (except maybe their available credit on their credit cards for a little while). Then they can't make the payments and their lives pretty much go to hell.

[DebbieL]

We've been watching Til Debt Do Us Part for years now (we're in Canada where it is filmed). I love it. It is truly astonishing how clueless so many people are (and some of them have no idea how much they even make - let alone spend).

[KTP]

When you watch this stuff, remember that ultimately you and I will pay for it when they declare bankruptcy after such behavior.

[radionightster]

What the heck happens to these people when they can't work any more?

To be honest, I'm terrified with my wife. Her parents have zero savings, not a dollar, and a mountain of debt. They live paycheck to paycheck. He's self employed (a wood worker / contractor), she works in retail. When, not if, he gets hurt, and can't work anymore, what will they do?

I've already had the talk with my wife, that I won't upset our finances to help them out. They keep making these bad decisions. It's scares the hell out of me though because I know I'll end up paying for their mistakes.

[Snodog]

But these are the people who keep our economy growing. I hope they buy lots of stuff from the companies I invest in that way I can stay out in front of them. Not too far in front as to start a revolution though.

Some people are just not good at math and/or have problems with delaying gratification. To each their own.

[RACHelp]

Originally Posted by disneysteve

Many people live on the theory that if they can afford the monthly payment, they can afford the purchase. These are the people who buy cars with 7-year loans, lease luxury cars, buy umpteen-inch flat screens with 0% deals, etc. It is also the people who go to Rent-A-Center and sign a contract to pay $25/month for 3 years to rent a $400 TV. The fact that they will pay a total of $900 for that $400 TV just never enters their mind.

Originally Posted by cjscully

Yep. This is the crux of the consumer debt problem. The only question people ask is "can I afford the payment". These people also have the mistaken idea that they're spending less than they're making if they can cover their monthly payments every month. They view the payments as spending but they don't view the credit card charges as spending. After all, they don't have to pay for the entire amount charged just the fraction represented in the minimum payment on the credit card statement.

The saddest part of it to me is that this approach seems to "work" until they experience a loss of income for whatever reason and they have nothing to fall back on (except maybe their available credit on their credit cards for a little while). Then they can't make the payments and their lives pretty much go to hell.

I work with RAC and renting isn’t right for everyone, but I know our customers use us because we take small payments for items in a way that’s more manageable for them. At Rent-A-Center, we have a 90 day same-as-cash policy that we fully explain to all customers, if you choose to pay off your item in full within 90 days, then 100% of the rent you have paid is subtracted from the cash price. No credit needed, flexible payment plans, free delivery and repair service at no extra charge are some of the benefits that make sense for our customers and, if for any reason their circumstances change, they can return the merchandise at any time.

[DebbieL]

The previous message was brought to you by Rent-A-Center. We now return to our regularly scheduled programming.

[cicy33]

Originally Posted by DebbieL

The previous message was brought to you by Rent-A-Center. We now return to our regularly scheduled programming.

While I completely agree the costs are significantly higher I also see the purpose of these stores. Some people have gotten themselves in so much damage they have no other choice. I know that if my fridge dies on a Friday I don't have the cash right now set aside to buy a new one, I could use this option. (please fridge never die!) we actually just bought a new one about 6 months ago. so it should last several years. (that was a joke on the current way things seem to last!) We paid about $1800 and got a really nice one. We paid cash. We did go into an "Aarons" in NC when we lived there and we bought a couch and loveseat for a huge discount because it was previously rented. Sometimes these places have really good deals. We paid a total of $400 for both and they looked almost new.

[disneysteve]

Originally Posted by cicy33

While I completely agree the costs are significantly higher I also see the purpose of these stores. Some people have gotten themselves in so much damage they have no other choice.

What about going on craigslist and buying something used until you can save up for something better? I just did a quick search and found almost 100 refrigerators listed with a max price of $100 and there were numerous ones listed for FREE - just come and get it.

If you need something for a short period of time, renting might make sense, but otherwise, I think there is almost always a better choice.

[cicy33]

Originally Posted by disneysteve

What about going on craigslist and buying something used until you can save up for something better? I just did a quick search and found almost 100 refrigerators listed with a max price of $100 and there were numerous ones listed for FREE - just come and get it.

If you need something for a short period of time, renting might make sense, but otherwise, I think there is almost always a better choice.

Keep in mind that your craigslist and mine are totally different. Here is an example. We replaced our fridge 6 months ago (as I mentioned earlier) when we did that we sold ours on craigslist. We had a couple travel more than 40 miles to us because it was the ONLY ONE available around here. Their words not ours. We sold it for 150. it was a side by side.

Just to be fair I went to ours just now and looked. there are THREE. One is 100. One is 450. and the final is 650. and that was including the postings since: Sun, Jan 2. This was the postings in the appliance section. I am not saying we never get any but not a lot. and out of those three I have no idea where even two of them are at. Never heard of the towns. one of them is about 1 1/2 hours away.

We live in a very small area and our craigslist is horrible. mostly it is just scams. Listing on it is sometimes a joke. I will list stuff for sale sometimes and get no responses or even worse the only ones I get are this: "are you broke?" "we can sell your stuff for you" or the really fun ones. "is this still available?" I respond yes and get this in return from that email address: "do you need money" I have mentioned before I think when we lived in NC the craigslist there was great. people actually used it for its purpose. Here and I suspect in other small areas it has little to no use.

The other problem is that sometimes people don't have a hundred dollars at that moment when their fridge breaks. and I do personally consider that an emergency. now if the dishwasher breaks that is an annoyance but one can wait a week or a month to replace it. I am not saying that the rental places are the great choice but I do see that they offer an option to people who cannot otherwise get credit.

[justinblake]

I have never seen an episode of this show. I'd catch one one of these days. It really is unbelievable how people get addicted to credit and spending beyond their means.

[thomsoad]

I have watched it a few times. I personally find her kind of annoying. While I do agree with what she is doing... Im just not sure helping them for one month is going to cut it. These people have been spending more then they make for a very long time. I just dont think most people will do it after she leaves... old habits die hard.

[rob62521]

We really like that show and watch it after Suze Orman. I wonder if the show does help after the month. I would like to see a follow up show and see if the couples stuck with the plan.

I know one poster was defending the rent to own, and I know people have to make a profit to stay in business, but spending so much in fees, interest often hurts those who can't afford them. That's like trying to validate paycheck loans by saying they provide a service to the folks who frequent them. And it is true, they provide a service, but at a huge cost to the customer who may not understand how much interest they are being charged.

I digress. Sorry. I like the show and the common sense advice.

[disneysteve]

Originally Posted by rob62521

We really like that show and watch it after Suze Orman. I wonder if the show does help after the month. I would like to see a follow up show and see if the couples stuck with the plan.

I know one poster was defending the rent to own, and I know people have to make a profit to stay in business, but spending so much in fees, interest often hurts those who can't afford them. That's like trying to validate paycheck loans by saying they provide a service to the folks who frequent them. And it is true, they provide a service, but at a huge cost to the customer who may not understand how much interest they are being charged.

I digress. Sorry. I like the show and the common sense advice.

I think the show provides these folks with a wake-up call. Strange as it seems to most of us but many people simply have absolutely no clue what they are doing with their money. When they actually see it in black and white, I think they will change. Maybe not 100% but I'm sure the experience has an impact on their behavior. Also, I'm sure that what we actually see on the show is just little snippets of all that takes place during the month.

As for defending RAC or payday lenders, those places are indefensible. They prey on the folks who can least afford them. It is the epitome of predatory lending. Notice that those places are never located in nice neighborhoods. They are all in poor neighborhoods. What does that tell you?

[DebbieL]

Originally Posted by thomsoad

I have watched it a few times. I personally find her kind of annoying. While I do agree with what she is doing... Im just not sure helping them for one month is going to cut it. These people have been spending more then they make for a very long time. I just dont think most people will do it after she leaves... old habits die hard.

They've done follow-ups a few years later with some of the couples and many of them actually did follow her advice (not all of course). Some have split up (naturally). I've also seen some of the people that have actually been on the show comment on message boards and let us know how they're doing (I'm Canadian, so the people on the show are all Canadian too and sometimes they will post updates about themselves).

She has another good show that she just started doing called Princess that is a 1 hour format. Deals with people like the delusional woman sitting in the super-expensive car that someone else brought up from one of the Till Debt episodes. Not her specifically, but "Princesses" just like her.