WRAL SmartShopper

WRAL SmartShopper

What NOT to do: shocking story of overextending

Posted February 25, 2011

Here's a shocking story of how much one family was overextended and how they continued to overspend until the financial planner had a word with them. Even after filing for bankruptcy, they went on a lavish vacation at a 4-star hotel. HERE's a great example of what not to do and the course of action the financial planner had them take to start digging out of the very big hole they are in.

Click HERE to read the article in the LA Times.


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  • hihuwatlu Feb 26, 2011

    people should not just be able to file bankruptcy and go on with their lives after living like that. It's honest, responsible, people who end up paying the consequences of their actions, while they got to live way above their means for a long time then just have that debt wiped out.

  • HappyGirl08 Feb 25, 2011

    Geez. That stresses me out just reading it. I'd like it if they would follow that couple up in 6 months or so. I'd be curious to know if they are sticking to the plan.

  • Oxymoron02 Feb 25, 2011

    I actually *know* people who live like that. I have trouble containing my disgust.

    The big problem is they can't differentiate NEED and WANT. I have a rant on my own blog about how not knowing the difference grates on my nerves.

    I actually had to borrow money from my kid's savings once. I was a single Mom. After being unemployed (I'd quit my job, so no unemployment) for almost 2 years, my savings was almost gone, and if I was going to make rent next month AND feed my kids I needed that $100 my son had stashed away from his Xmas check from his grandfather. Worse than that, the next month my son found something he wanted to spend it on, and I had to explain to him that I'd spent it, but that I'd get it back to him as soon as I could. "Don't worry Mom. I don't really need that thing. Thanks for making sure we can eat." He was 8, and I was floored. I've never felt more like dirt in my life.

  • 2012notobama Feb 25, 2011

    And that is why we had to bailout the ding bats who bought homes they could not afford on their salaries. We, the taxpayer, are going broke paying for these ding bats mistakes.

  • sunoe Feb 25, 2011

    I'm trying to wrap my mind around the stress of that lifestyle.

  • t0tAlChA0s Feb 25, 2011

    Unreal!! Who buys a $440,000 house on a $62,000 a year income? Just doesn't make sense! I keep going back and reading that just to make sure I am reading it right! Crazy ain't the word for that.