A Culture of Debt

Fighting the cold on a blustery March morning, I walked into my bank on Third Avenue. I was greeted by a bank employee. Once she found out the reason for my visit, we went to her desk. While processing my request, she noticed on my account that I have been pre-approved for a credit card that the bank offers.

This bank tells me literally every time I make a transaction, whether with a teller or at the ATM, that I have been pre-approved for this very credit card. I always say “no, thanks.” I already have a credit card with this bank and I have no desire for another card. I pay my bill in full every month, so what would be the purpose of another bill to pay, another thing to keep track of, something else to worry about in an already busy and pressing world?

Realistically for me, the only impetus to open a new account would be to close my previous account. The card being offered has slightly different features than my current card, offering a larger amount of points on purchases that I make frequently, while my current card offers just one point per dollar spent. More points would equal more gift cards I can select from or a larger amount of cash back, at the end of the day. I told her it sounds enticing, but that I am preparing to move in the coming weeks and could not spare the hassle of canceling one account and opening another at this time. I would consider it in a few months.

The bank employee countered that there would be no harm in opening an additional credit card.

“Do you shop on the net?” She asked.

“Yes,” I responded. Who doesn’t?

“Well most people have a separate credit card for purchases on the net, so if there are ever any problems with the card, they know it comes from the net.”

I have never met anyone who has admitted to having a separate credit card for online purchases. Anyone who pays attention to their credit card statement should not need to have a separate card to check for fraudulent purchases. That is perhaps one of the stupidest justifications for having an additional card I have heard.

She then added that another additional card is helpful to prevent overdraft of another account.

“I don’t overdraft,” I quickly asserted. “And I have good credit and want to keep it that way. I have no reason for having an additional credit card.”

“Well, actually, you can have up to seven credit cards before it is bad for your credit,” she responded.

Seven. 7.

As shocking as the number seven is, I had heard this before. There must be some validity to this statement. For someone single with few expenses like me, there is no reason whatsoever to have so many credit cards.

It was at this moment that a man came over to the cubicle and introduced himself as one of the bank managers. He had heard the tale end of the “seven credit card” thing and reinforced that it is in fact good to have several credit card accounts open. Up to seven. He boasted that it is good for your credit.

“I have excellent credit. It doesn’t make sense to me why I should take on the responsibility of paying and keeping track of another bill when I simply do not need it. To me, this seems like this culture is the reason why we are in such a financial mess right now.”

I don’t pretend to be an economist and openly admit I am often miffed by some of the things going down (literally) in both the US economy and in the world; however, I understand the basics. Homeowners and potential homeowners were offered irresponsible loans by a variety of parties interceding for the banks, which ultimately supplied this money. Other firms “bet” on these loans and on the firms backing these loans, homeowners were unable to pay and it spun out of control. However you would like to characterize this as spiraling up, trickling down or simply causing a chain-reaction, our economy is in trouble stemming from irresponsible loans. Debt.

At some point the money had to run out. And while I have a lot of issues with bailouts, stimulus packages, tax relief, etc., etc., etc., I am not taking issue with that here.

The American culture has a serious problem with promoting debt. We are working hard to find recovery for large American companies that are serious trouble, but we have no plan in place to reinforce the culture of debt.

Banks earn their money off of loan and credit card fees and interest rates and yes, this is their business. Their bread and butter. But I have a credit card already. Should it be continually pushed in my face? Shouldn’t I be rewarded for being responsible?

The bank manager and I delved into a conversation about the financial crisis and who was at fault. I told him that consumers should not be lead onto a path where they have to pay off several credit cards. I reasserted that this culture of debt is the reason why banks are in trouble.

“Not this bank,” he told me, following to list four other banks that landed on their feet despite what has transpired the last few months.

“Right now I am fortunate to have no debt. I have few expenses: I don’t own a car, I don’t own a house. I pay my bills completely every month. But one day, I will buy a car, I will buy a house and I will go to graduate school and I will need loans for all of those things. And now, because of other people’s irresponsibilities, it will be even more difficult for me to get a reasonable loan. Even though I am responsible and pay off my purchases when they are due, I will pay the price. And that is not fair.”

Fortunately by this point I received a receipt for my transaction and it was time to leave. We shook hands and off I went.


Fixing the current economic crisis in the manner in which they are doing it will only result in the treatment of the symptoms of the problem. If on this day in March I am still told I can open seven credit card accounts without problem, we did not learn the lessons of the last few months. In the long-term, we need to target the root cause. We are in a culture of debt, and the lenders encourage dishonesty.