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Tuesday, June 10, 2008
WSJ reports on debt support groups
The Wall Street Journal article: Hi, My Name Is Fred, And I'm Addicted to Credit Cards reports on the growing popularity of debt support groups.
Group therapy for folks who owe a lot isn't a new idea. Debtors Anonymous has been bringing borrowers together to battle what it calls "compulsive debting" for decades. But for years, the group's growth was hampered by the social stigma surrounding money problems, says a spokesman. "It used to be that you had to live in shame about debt," says Ashley Clayton, who helps organize the Southern Baptist campaign. "Now, there's been an awakening."

Growing pressure -- 11.8 million bank credit-card accounts are delinquent, and foreclosure filings topped two million last year -- is making more people ready to share sensitive debt problems with strangers. And observers add that many of the more outspoken debtors hail from a younger generation, those who grew up with MasterCards and without Depression-era memories.

The Hungry Boyfriend

Last month, 26-year-old accountant Shawanda Greene says she joined "Girls Just Wanna Have Funds," a recently created Washington, D.C., support group of mostly younger women. Ms. Greene's goal: to figure out why, despite an annual salary of $82,000, she had only $54 in her savings account.

The Girls kicked into action, encouraging Ms. Greene to track her spending. While some of her income was going to pay down debt, including $14,500 in student loans, Ms. Greene realized she was also spending too much on extras, like her $400 Cole Haan boots and her hungry boyfriend, who she says would consume much of her food when he came over. "Things were particularly bad when it came to produce," she says. "He'd eat like four tangerines at once....Sometimes I'd cut up some watermelon, pineapple and strawberries. He'd eat a good 75% of that."

So, Ms. Greene says she dumped him, after frequent arguments about grocery bills and other money matters. The former boyfriend, a 36-year-old engineer named Lindon Fairweather, says he shared grocery costs but acknowledges he did munch a lot of fruit at Ms. Greene's. "I'll eat more than four tangerines, absolutely....I can eat 18 mangoes in two days," he says. "That's just me."
Listening to some of the members of the Debt Workshop in Granger, Ind. I was struck by the ages of the folks participating. I am so grateful my credit card debt was resolved while I was in my twenties. I would hate to still be struggling with that debt in my fifties!
posted by Boston Gal @ 8:49 AM  * *

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3 Comments:
  • At 9:03 PM, June 10, 2008, Anonymous Anonymous said…

    If he's eating 18 mangoes in 2 days, can you imagine how much she was spending on toilet paper, too!

     
  • At 8:18 AM, June 12, 2008, Blogger Jon said…

    Wow, I'd never heard of dumping someone because they eat too much fruit. Hopefully the article was highlighting a minor point to be funny. This woman isn't going to eliminate her "compulsive debting" like this.

     
  • At 12:56 PM, June 15, 2008, Anonymous Anonymous said…

    I once had a similar argument with an old boyfriend who ate the equivalent of three lunches at one sitting. When I asked him for the cash, since I was planning on bringing that food for lunch, he became defensive.

    He finally admitted that he had less than $50 in his bank account and couldn't afford to pay me.

    I kicked him to the curb. You might call it cold hearted, but when you realize a gainfully employed man in his late 20's doesn't have a cent to his name, you realize there isn't a future.

     
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