Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders (Hardcover)

~ (Author)
Key Phrases: United States, Bank of America, Dave Ramsey (more...)

Editorial Reviews

From Publishers Weekly

In this companion to his documentary film of the same name, Scurlock takes a provocative though scattershot tour of "debt hell," exploring Americans' use and misuse of credit. He introduces us to upbeat debt collectors, downbeat academics, motivational speakers who insist that we can get out of debt by refinancing our homes and "skipping the a.m. latte," and "average Americans who are swimming in debt." Scurlock's villains are Visa, Citibank, credit bureaus, legislators who do the financial industry's bidding and a system of credit that "has mutated into a relentlessly efficient and voracious machine." We learn that most consumers who teeter on the brink of bankruptcy aren't bad people—they've just taken all those no-credit-buy-anyway ads at face value. It's all pretty involving, though as with most documentarians, Scurlock is only as good as his sources—and in print, anecdotes and testimonials aren't necessarily the best way to convey complex information or make an airtight case. The author also oversimplifies issues ("banking is about selling a single product: debt"), avoids engaging anyone who might challenge his banks-are-evil argument and turns occasional tangents into full-fledged digressions. But Scurlock deserves credit (no pun intended) for opening more eyes to this dire issue. (Feb.)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

From Booklist

Scurlock, award-winning documentary filmmaker, writes this book as a companion to his film by the same name to spotlight the enormity of consumer debt in our society and its consequences. This engaging narrative presents numerous stories about easy credit given to students, the poor, the weak and the uninformed, whose lives are ruined by their debt burden, including some cases of suicide. In recounting the history of credit cards and the effort to sell credit as a lifestyle, the author claims that credit given to those who do not have the ability to repay it is entrapment. His is an urgent call to arms in the way we think about debt; he blames financial institutions and a seemingly powerless Congress that during the past 30 years has allowed bankers to make the rules on extending credit. While not everyone will agree with Scurlock, this is a valuable perspective for library patrons in our materialistic, debt-ridden society and provides excellent education on an important topic. Mary Whaley
Copyright © American Library Association. All rights reserved

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Product Details

• Hardcover: 256 pages
• Publisher: Scribner (March 6, 2007)
• Language: English
• ISBN-10: 141653251X
• ISBN-13: 978-1416532514
• Product Dimensions: 9.2 x 6.2 x 1.1 inches
• Shipping Weight: 13.6 ounces
• Average Customer Review: 3.5 out of 5 stars  See all reviews (37 customer reviews)
• Amazon.com Sales Rank: #375,710 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

23 of 28 people found the following review helpful:

4.0 out of 5 stars Much needed revelations about credit card companies - look for the movie soon! , March 9, 2007

By	K. Corn "reviewer" (Indianapolis,, IN United States) - See all my reviews (TOP 100 REVIEWER)

While I do think this book goes a bit overboard at times, that is balanced by the explanations of how credit card companies may really operate (often in synch with motivational speakers and economic "experts" who encourage people to take risky chances to incur MORE debt) -realities that the average consumer often does NOT understand.


The confusion starts with reading the fine print on those credit card agreements. Admit it - do you understand every word or does it often sound like a foreign language? If you say "foreign language" you are not alone because there was a recent news segment showing college educated people scratching their heads and confessing that they couldn't understand the terms of the fine print in many credit card agreements.

How many people know that a credit card company may raise interest rates even if the consumer pays THAT card on time but misses a payment elsewhere - even on something like a utility bill or library fine...or if their credit rating drops, even for a month?

How many know that the terms of agreement can change with minimum warning? Think of it - if you bought a suit or dress or anything else, how would you feel if the salesperson came knocking on your door a month later and said, "Oops, we changed the price. You now owe $10.00 more than you originally paid." That's how insane these random change of "terms of agreement" are.

How many people even read the "new agreements and terms" that many suddenly come in the mail? They seem to come pretty quickly and they seem to change all the time. The last one we got said we had the "option" of turning down the new terms (raised interest) but if we did so, had to pay the full balance in full immediately! Luckily, we had a very small balance, paid it and refused the "new terms"... but this could stress many consumers with larger balances.

Having said that, I am NOT one of those people who think credit cards are universally EVIL or the work of the devil. In fact, I think they can be an asset if used wisely by savvy consumers, within limits. However, I do feel that most credit card companies profit from the fact that the average consumer does not pay off their bills every month, wracks up often huge interest rates and simply gets deeper into debt. Question is - is part of the problem the fact that credit card companies count on the ignorance of consumers and take advantage of that....or is it due to the fact that consumers lack financial savvy? Where is the line between the two?

Also, keep in mind that most Americans don't save very much money and the combination of that and PAYING interest rates isn't helping matters. Putting 10 or 12 percent of one's income in savings, rather than paying interest, would go a lot farther in building financial security, wouldn't it?

In any case, I think this book is a step towards educating oneself about the risks of credit cards. But it is only a start. After finishing it, I suggest you conduct some searches here and at message boards and get the info from other people about the realities of credit cards, the pros and cons and how others have used them, for better or worse.

And, a personal suggestion.. if you are EVER tempted to use those 0% or 1.99% short-term, limited time offers, be SURE you ask if your payments will go towards the higher interest or lower interest debt you ALREADY have on that card (if you do). If you don't have a balance on the card then NEVER charge anything on that card till you pay off the debt and ask about any fees involved with using those offers. In short, be pro-active, be educated and know the facts. Credit card companies will often go out of their way to keep you from GETTING the facts but that doesn't mean they are all evil. Credit, used wisely and as part of a budgeted plan, can help you financially, raise your credit score and prove you know how to integrate credit into a total financial plan, which should include saving regularly, planning for retirement and the rest.

One final anecdote: A few years ago, we used a store credit card to buy a new fridge (when our other one suddenly died, for good) and got the new one for 0% interest, paid it off in a year (so the interest didn't go up), had no fee for the use of the card and got free delivery and installation as well. It was a win/win situation and we paid NO MORE for that fridge than we would have if we'd paid cash on the spot. However, we did not charge ANOTHER thing on that card, had a 0 balance to start with and made sure we paid on time every month. In the meantime, the balance of our funds stayed in the bank, earning interest. You do the math. What harm did that small debt do? None.

Having said that, be aware that store credit cards often charge HIGHER interest than many other types of credit cards so you do have to stay informed and know what decisions you are making - and the consequences of those decisions.

UPDATE: Now you can see the movie, too:


Maxed Out

14 of 17 people found the following review helpful:

3.0 out of 5 stars Helpful, but Too Superficial, March 13, 2007

By	Loyd E. Eskildson "Pragmatist" (Phoenix, AZ.) - See all my reviews (TOP 100 REVIEWER)    (REAL NAME)

Pawnshops, check-cashing outlets, title-loan stores, bank branches, and financing companies, along with billboards advertising credit card repair companies, bankruptcy attorneys, and loans of one kind or another (especially mortgage refinancing) - these are the signs of growth in America's "new economy."

Rising debt is a serious problem in America - unfortunately, Scurlock fails to treat it in a structured manner, with trends, detailed data on the size of the problem and biggest causes and information on debt collectors and their practices, nor does he show the problem in a larger perspective of how we have been living on the edge - first through protected union jobs and extensive overtime (taking advantage of the fact that America's manufacturing capabilities had survived WWII intact), two-income families, credit-card debt, "new" mortgages (more lenient lending standards, interest-only, negative-amortization), and using real-estate as an "ATM machine" via mortgage refinancing. In addition, many of those currently without serious debt basically live from paycheck to paycheck - but a hospitalization or layoff away from serious debt.

The problem is obviously not limited to households - the federal government's annual budget is in deep deficit, as are its trust funds for Social Security and Medicare. Finally, there is the enormous and mounting U.S. trade deficit.

Marketing debt has become increasingly easy - millions of pre-approved applications are sent out each year, "bait and switch" loan operators flourish, shoppers are enticed with offers of eg. "10% off on today's purchases" if you apply today, and vendors are willing to pay the processing fees because studies show that those with credit cards spend an average of 30% more. And until lately, there's been the housing bubble, luring many into "investing" in hopes the market continues to rise (overall default rates now 4.95%, with defaults at 13%+ in the "sub-prime area). Making money for lenders doesn't seem to have been a problem either, with usurious rates, and high fees for late-payments, over-borrowing (even when approved), defaulting on other debts, etc., etc.

Bottom-Line:" "Maxed Out" provides some good background information, but fails to meet the needs of one seriously interested in the topic.

10 of 12 people found the following review helpful:

2.0 out of 5 stars Inconsistent and anecdotal, June 23, 2007

By	Mr. Roger H. Geyer "outcast_searcher" (Lexington, KY USA) - See all my reviews (REAL NAME)

To his credit, Mr. Scurlock righly points out that under the current laws, the banking industry targets the poor and uneducated with this country with predatory tactics, with impunity.

On the downside, this book is full of assertions (including statistics)and strongly held opinions, but except for occasionally mentioning an author or book he recommends, the author has NO documentation (formal citations, footnotes, index, etc) for his many assertions. Instead, the book is a rambling litany of anecdotes, which are likely atypical, as he points out that he searches hard to find interviewees to make many of his points.

However, reading this, two important points crystallized in my mind, as far as potential solutions (Scurlock doesn't offer real solutions, he just bemoans reality):

a). Whether it be the litany of books, pieces on television such as PBS, etc. or the frightening statistics such as the massive level of credit card debt in this country(over $9000 per household), or modern economic theory (which believes that credit cards with their long payoff periods cause us to overspend) -- it seems like the LONG TERM debt that credit cards (especially high rate cards) allow is a fundamental problem. Implementing a maximum payoff period of say 12 to 18 months as a law, after some sort of warning period to prepare folks in debt -- could fundamentally alter the landscape (though it would take political courage by congress, so is highly unlikely).

b). Given the dramatic rise in personal debt over the past 25 years, which has largely mirrored the dramatic use of credit cards -- consumer debt might well be THE primary reason for the growing wealth inequality in this country. Bringing back some reasonable level of usary laws, to limit the predatory behavior of banks and short term lending institions, should help curb this massive growth of high interest debt among the poor.