34 - Wednesday, January 31, 1990 - North Shore News

BUSINESS

Organization aims to end
destructive cycle of debt

From page 33

at $245,000. However, the con-
tractor refused to start work until
the “‘subject’’ clause was removed.

Al agreed and the new house
was completed in November.
However, by that time its market
value had plummeted to $175,000
and.Al’s first home didn’t sell until
the following April — for
$180,000.

“After we paid off the $90,000
mortgage, we had only $90,000 left
to put toward the $300,000 bill for
building my dream home,’’ he
said.

“We struggled with payments of
$2,000 a month for four years. Fi-
nally, we sold the new house for
$155,000.

Al made a settlement with the
holders of the first and second
mortgages, and he and his family
have been living in a rented house
ever since.

Three years ago, Al was laid off
and started his own business. ‘‘1
borrowed to supplement my
meagre earnings until § could no
longer make ends meet,’’ he said.
“In the fall of 1988, I went for
counselling.

“I discovered that I had always
had a compulsion to borrow, al-
though I have never been able to
discover the reason why.’’

A year ago, Al also found con-
siderable support from Debtors
Anonymous. (To contact the
nearest DA group, phone Greater
Vancouver Information Services
during regular office hours —
875-6381.)

“IT have always had a tendency
to get distracted, and do the things
I enjoy rather than those that gen-
erate revenue,”’ Al said.

“JT have now shifted my focus
and don’t allow myself to be
distracted. Initially, I would write
down my objectives each day,
review my progress at the end of
the day, and report this to another
member of DA who was acting as
a support person. | still do this,
but now on a monthly basis.

“Although I haven’t been able
to reduce mv debt yet, at least I am

enjoying life again and can resist
the temptation to declare
bankruptcy.”

Debtors Anonymous is modelled
on many of the steps and tradi-
tions of Alcoholics Anonymous.

*“*We are a fellowship of men
and women who share their expe-
rience, strength and hope with
each other that they may solve
their common problem and help
others recover from compulsive
indebtedness,"" says the DA
preamble.

“The only requirement for
membership is a desire to stop us-
ing any form of unsecured debt.*’

DA says compulsive debtors are
“in the grip of a progressive ill-
ness."* Dr. James Schmidt, head of
the psychology department at
Vancouver General Hospital, says

-he does not believe compulsive

behavior is a disease but rather a
pattern of learned behavior. How-
ever, he adds, ‘there are different
opinions about this.

‘*Though mental health profes-
sionals might disagree with some
of the underlying theories of
groups like Debtors Anonymous,
such self-help groups have been
able to help people overcome their
problems. You don’t have to buy
the whole package to benefit.’”’

Schmidt said some of the debt
problems people have can be trac-
ed simply to a lack of awareness of
how to manage money.

**In other cases, perhaps excess
spending represents the need for a
reward, or even socialization —
needs that could be provided by
other sources,’’ he said.

Debtors Anonymous says fac-
tors that might cause a person to
become a compulsive debtor in-
clude:
© An inability and unwillingness to
accept reality. People escape into a
dream world supported by debt,
pawning the future to avoid the
responsibilities and challenges of
the present.
© Emotional insecurity. A typical
comment from a DA _ member:
“The only time I felt 1 really
belonged was when I knew I could

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pick up the cheque. Then I felt
secure and comfortable.’’

© Immaturity. Many debtors think
they can avoid mature responsibili-
ty for their affairs by borrowing
for what they feel they need now.

ete

Mike Grenby is a Vancouver-
based columnist and independent
financial adviser who will answer
your questions as space allows in
his column. Write to him c/o
North Shore News, 1139 Lonsdale
Ave., North Vancouver V7M 2H4.

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