Dilemmas of Debt: Suze Orman, Edmund Andrews & Credit Card Issuers

This weekend's New York Times Magazine (May 17, 2009), with Suze Orman on its cover, focuses on a theme that is at the forefront of the American national financial psyche: "Dilemmas of Debt."

As the magazine cover indicates, Suze Orman and her approach to debt anchors the various discussions in this issue. The lead article Suze Orman is Having a Moment, focuses on Orman and her financial philosophy: "Track your spending. Stay out of debt. Take care of your car. Look (sic) into a Roth I.R.A." Notwithstanding the quibbles I have about her endorsement of certain companies and products, her fundamental message about frugality resonates very well with my own too, viz., living a frugal yet balanced and healthy life.

The piece about Orman is juxtaposed with the New York Times economics reporter, Edmund L. Andrews' reflections on his own subprime mortgage mess: My Personal Credit Crisis. This article is a summary of his forthcoming book, Busted: Life Inside the Great Mortgage Meltdown (W.W. Norton), which is scheduled for publication in June 2009.

Reading the article about Orman's financial philosophy and Andrews' ruminations of his own financial missteps reminded me about a news article that appeared earlier last week: Thriving Norway Provides an Economic Lesson. The underlying theme of this article is how Norway's frugal and contrarian spirit places it in a position to thrive while others, like Britain and the U.S., are strugling to stay afloat in an ocean of debt:

The global financial crisis has brought low the economies of just about every country on earth. But not Norway.

With a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state.

By far, the most fascinating article in this issue is What Does Your Credit Card Company Know About You? This article describes how credit card companies are looking to human psychology to not only understand the motivations behind spending and paying, but also using those insights to squeeze as much as possible from their debtors.

See also other articles in this blog on:

• Suze Orman
• frugal living
• credit cards