The book has a companion movie which is also for sale on DVD, and it may be available at your local video store. Click here to see some clips from Maxed Out: The Movie on YouTube.
Isn’t it common sense that if you want to avoid be “maxed out” you shouldn’t take on debt to the max in the first place? The way to avoid drowning in debt is simple: live within your means or even better below your means. This hilarious old Saturday Night Live routine gives the secret to financial success: “Don’t buy stuff you can’t afford.” A lot of American consumers don’t seem to get these simple truths.
I hope that you have noticed in your reading of Chapter 7 this week that consumer spending constitutes seventy percent of GDP in the United States. And American consumers are heavily dependent on debt to finance their spending. Consumers who carry credit card balances from month to month are not living within their means. Many folks have treated their home as a private ATM taking out cash to pay off credit cards. The housing ATM has closed down but American consumers are still buying stuff that they can’t afford, and credit card debt is soaring.