Not to buy into the culture of debt

Make the choice

Robert Szypulski’s letter “The System for Credit Ratings Is a Scam” (Dec. 5) is correct. The problem with the letter is that it focuses on some poor soul’s individual predicament but doesn’t address the real problem: We worship at the altar of FICO.

The customer base for FICO is not private consumers. It is quite the opposite: The customers for FICO are the credit card companies. And they don’t give a hoot about consumers.

Think of the FICO score as a product that is marketed to us. One’s FICO score is an “I love debt” score. As such, it is not a measure of winning financially. The more you go into debt and the more credit card accounts you have, the higher your score. Isn’t that great (for them)?

I chuckle to myself when I see someone charging a $3 item at a store. Really? You don’t have a couple of bucks on you? Oh, yeah, I get it. You are building up your FICO score, while accumulating the “points” that your card offers. Collectively, credit card companies spend hundreds of millions of dollars annually marketing their product: Think you’re beating them up?Sure you are.

There are too many tragic stories of student debt. It used to be that the No. 1 reason students dropped out of school was poor grades. Not true today: Consumer debt is the top reason.

Car loans? Americans don’t ask: “How much?” They ask: “How much per month?” Quit paying interest! Save and buy with (remember cash?).

Resolve to get off the debt merry-go-round. It is a game you cannot win. It is their game, and you are playing by their rules. The only reasonable exception is financing a home, but even that can be paid for with cash if you are focused enough.

Most people in this country are living paycheck to paycheck. Be different! Spend less than you earn, save, give to charity. Is it easy? No, it’s just rewarding.

Living in America without loans/debt/FICO is inconceivable to many of us, but when you become financially independent, you won’t need aFICO score.

Don’t buy into the culture of debt! Debt is not a tool to create prosperity. Debt is proof that the borrower is a slave to the lender. HENRY TOMER

Shaler