More Maxed out
You can learn more about Maxed Out here.. It's opening in Chicago March 16.
Here’s an outtake interview from my chat with Director James Scurlock that was printed in The Right Place today.
Unlike many documentary filmmakers who are famous for working their plastic to untold levels, Scurlock financed the film with his own cash and support from an angel investor. It cost about $1 million to make. No credit card debt was incurred in the making of this film.
“Interestingly after I become an independent, documentary filmmaker — which is about the worst choice anyone can make — my credit limits nearly doubled," Scurlock says. "I thought that was curious.”
Scurlock says he hopes “Maxed Out” will help people understand the transformation that has taken place as the credit industry has become the debt industry.
"People are still living with the assumption that banks will only offer you credit if you can afford to pay it back, that they are conservative in rationing credit," Scurlock says.
But the reality is far different.
"The industry has become a kind of debt-selling machine," Scurlock says. "it’s very efficient and very effective at selling credit cards. You essentially have a product for very conceivable situation."
"People need to understand that if they are offered credit it doesn’t mean that someone has reviewed their situation and determined that they are a good credit risk."
At the same time that we have had this shift in the culture of debt, regulations have fallen by the wayside, Scurlock says.
Scurlock said that in California, "All the loans we are doing are mortgage only, called "liars loans." Yeah. You have this huge shift but all of the language is still from the past.
It is the use of that old fashioned, comfortable language Scurlock sees as the seat of deception.
"It would be one thing if the financial institutions had said ‘Hey look, this is a new day, and watch out, we are going to keep giving you this credit. But they are not, they are presenting (higher debt) as a reward for responsible behavior."
"Your credit score, which so much of this (lending) behavior is based on, is based on how well you float your debt," he said. "It is not based on your ability to pay."
