BUSINESS

Credit abusers can get help

“CREDIT CARD balances
to reach $12 billion,’’ said
the newspaper headline.

{t was a story about the sky-
rocketing use of credit cards in
Canada —- even though card-
holders were paying interest rates
of up to about 30 per cent on un-
paid balances.

Jamie, Jan and Al could relate
to that story. They consider
themselves compulsive debtors.

Jamie, 38, once ran his debts up
to $7,000; Jan, 47, went through
two marriages and personal
bankruptcy; Al, 58, lost his home
and still owes $175,000.

But all three recognize they have
a problem and have found help
through a relatively new organiza-
tion called Debtors Anonymous.

They agreed to share their expe-
riences so others with similar prob-
lems might be encouraged to seek
help. (1 have not used their real
names.)

Jan has always been employed, °

usually at low-paying jobs; for 17
years, she was a single parent. She
taised five children through two
marriages (the first lasted six years,
the second eight) and now works in
personnel training.

“When my last child left and I
was still increasing my debts, I fi-
nally faced the fact that my com-
pulsion to spend was the problem
— not that my necessary expenses
exceeded my income,”’ she said.

She traced her problem back to
her pre-teen years, ‘‘when my al-
lowance never seemed tc stretch
through the week and I’d borrow
from my brother. I'd pay him back
when I got my allowance on
Saturday — and by Monday I'd be
asking him for yet another loan.”’

After she got married, Jan's
food money never seemed to be
enough for the family. She set up
an account with the grocer, used
most of her paycheque to pay what
she owed —~ and soon had to bor-
row again.

“T never told my husband,”’ she
said. ‘To get a bit of relief from
this merry-go-round I once fabri-
cated a story that I had lost the
food money. My husband replaced
it which allowed me to get caught
up. But before long I was over-
buying and asking for credit again.

“I always felt incompetent. I
was ashamed and felt guilty. I
believed I just never had enough
money, and resented people who
did.”

When Jan first got a credit card,
*] felt as though I had won a lot-
tery.’” The feeling continued with
each new card.

“No matter how sternly I spoke
to myself about using the card only
when necessary, I invariably push-
ed it right up to the limit or a tad
past within two or three months,”’
she said.

‘Power shopping! Binge shopp-
ing! I would even take cash ad-
vances so I could pay other cred-
itors on credit.”

Jan had several consolidation
loans, then finally, with debts of
$11,000, had to file for personal
bankruptcy. It was harder the se-
cond time around to get credit
cards, but within a couple of years
“I had forgotten the shame of the
bankruptcy and was abusing credit

”

again.
Until, she contacted Debtors
Anonymous, “‘I never had any

understanding of my compulsion. !
felt certain nobody else on earth
could be as stupid as !.”’

(To contact the nearest DA
group, phone Greater Vancouver
Information Services during regu-
lar offices hours — 875-6381.)

IT’S A MATTER OF
LIFE AND BREATH

DON’T SMOKE

f British Columbia Lung Association .

Jamie is single and admits: ‘‘I
don’t handle money well."

dollars
and sense

Michael Grenby

‘*When I was small,’’ he said, ‘I
would hoard money, always fear-
ing there would never be enough.
Then, when I had saved to a cer-
tain point, I would spend it all and
make myself feel impoverished.’’

Jamie said this pattern con-
tinued after he moved out on his
own.

11%

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ee 7 Looking both ways.

‘When | had saved to a certain
point, I would stop working. Once
1 lived on my credit card for sever-
al months and was threatened with
fraud for going over my spending
limit. I didn’t have the feeling of
self worth to lead a sane financial
life."”

Jamie said his debts once ran as
high as $7,000.

Then he got involved with Deb-
tors Anonymous. ‘“} met with
them a year and a half ago in a
pressure group to discuss my fi-
nancial situation and to make a
spending plan,’* he said.

‘*Today, I record every financial
transaction in my spending record
and do a financial statement every
month. I have now started my own
carpentry contracting company
and my income has jumped to
$36,000 from $18,000. Most im-
portant, I am free of debt.”’

NEXT WEEK: AIl’s story, more
about Debtors Anonymous and a
psychologist’s comments.

nae

Mike Grenby is a Vancouver-
based columnist and independent
financial adviser; he 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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