Moral Bankruptcy

I can’t help but be disturbed by the television commercial I saw this morning by a local attorney.  It’s not the first time I’ve seen it and surely it won’t be the last.  But the basic premise of this commercial is to compel people who are in debt to declare bankruptcy.  Why?  Well, Congress is working to change the law to make it more difficult for you to declare bankrupcty.  Gasp!  So if you’ve been fiscally irresponsible you might want to act fast before you can be held accountable for your actions.  Or in more real world terms… If you’ve been stupid enough to dig a big hole using credit cards to live beyond your means, then you should be able to walk away from it and leave someone else (i.e. me and other responsible people) holding the bag.  This is just brilliant!  Welcome to America, where no one is responsible for their own actions.  I will agree, as pointed out in that last link, that the banks also shoulder a certain amount of responsibility.  Why are they giving credit to people who don’t have the ability to pay their bills?  I think the answer is self evident…they don’t want you to be able to pay for it.  Credit card debt is like crack in the banking industry.  Those high interest rates and low payoff rates guarantee them a steady flow of profits.  Just imagine what would happen to them if even 50% of those with outstanding balances paid them off.  The last thing they want is for you to be debt free.  But the bottomline is still the fact that if you used the credit, you’re responsible for its repayment.  The government making it more difficult to declare bankruptcy isn’t a disservice to those who have been irresponsible.  Quite the opposite.  It’s an effort to save those of us who ARE responsible millions of dollars.  Because everytime someone declares bankruptcy, the banks don’t just eat it as a loss, they simply pass it on in  the form of additional charges for the rest of us.  The only bankruptcy I see here, is the moral bankruptcy of those who are encouraging others that they don’t have to be responsible for their actions.
February 16, 2004 @ 12:13 pm | Category:
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