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

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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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