Credit Card Nation

by Robert D. Manning

Credit-card debt is choking American prosperity off at the neck. In Credit Card Nation, Robert D. Manning tells a fascinating story about the present and future consequences of credit dependence across all strata of U.S. society. Through extensive interviews with consumers, Manning talks to debtors, and to average Americans, affected by what Manning describes as our "credit card nation": an American juggernaut of indebtedness that spans personal, corporate, and governmental debt.

Genres: Nonfiction, Finance, Business

416 pages, Paperback

First published December 1, 1996

Reviews

[Lara Amber · Rating 3 out of 5]

It's an interesting delve into the changes our country has gone through the last century in regards to corporate debt, personal debt, and government debt. The book is a little dated now, since it was written in 2000 and is missing the details of the last 8 years.

The book covers the three branches of debt in our country, government, corporate, and personal. The country changed dramatically over the decades, with our government deciding that an ongoing national debt was an okay thing (and racking it up to insane levels), and deregulating both the banking and credit industries. This lead to mass consolidation of banks and credit cards companies, and allowed banks to branch out into other fields, becoming conglomerates. Corporations jump on the bandwagon using easy credit to go through massive mergers and acquisitions, completely changing the corporate landscape (and putting a lot of people out of work). The personal side the American population went through a huge change in the perception of debt (normal instead of a sin), the way they use debt (revolving credit), and their levels of debt and savings.

While the historical information on the deregulation of credit and banking and the rise of corporate takeovers was interesting, there was a flaw in the portions pertaining to personal debt. Many of the people used as examples fall to the fatalistic denial of personal action. The examples in the book apparently felt that outside forces were the only thing in control, weak excuses for running up credit card debt like "well they wouldn't have given me credit increases if they thought I couldn't handle it" were given. Talk about passively living one's life. It never occurred to people to just think "what do I think I can afford". There were no counter examples offered showing any citizens taking advantage of the new changes. (In an updated version of the book, if I was the author, I would point out the deregulation lead to the rise of online only banks, offering much better rates and services to people regardless of location.)

While there are some changes we do need in our banking and corporate structures (see current financial crisis), I don't approve of authors painting citizens as weak, mindless, and ineffective victims.

[Ridzwan · Rating 3 out of 5]

The author Robert D. Manning is a Senior Fellow at the University of Houston Law Center. What he does in Credit Card Nation is a remarkably good assessment of the debt culture that has slowly engulfed the people of America.

It is indeed shocking that college students as young as 18 are racking up thousands of dollars worth of credit card debt, even before they start working. According to Nellie Mae, the nation's largest maker of student loans, the average college student today has about $2,200 in credit card debt. When you consider that it takes about 12 years to repay a $1000 credit card debt at 18% p.a. on minimum monthly payments, the average American is in big trouble indeed.

By the time a young American graduates, he or she would have about $5,800 in debt on average. This figure is bound to climb once he or she enter adulthood.

What is happening in the United States is a very good precedent of what is about to occur all over the world. Credit Card Nation tells of good precursors of what to expect when you live in a society obsessed with consumerism, middle class symbols and unabashed debt.

While mass marketing strategies of credit card companies may be in part to blame, the main reason why the obsession with credit and debt has proliferated so much into society is the disillusion that people have about living a good life and surrounding themselves with purchases they otherwise cannot afford.

The 406-page hardcover starts by examining the history of credit cards over the past 20 years since the deregulation of financial services in 1980. Through real-life interviews, the author reveals how debt has and will continue to take a severe toll on society. An overall good eye-opener and read.

[Beth Barnett · Rating 4 out of 5]

I know, this sounds a bit dry, BUT especially the first few chapters were very informative, as they laid out the historical rise of debt in the 20th century, as it has been manifested by national debt, corporate debt, and personal consumer credit debt. Manning explains to some degree the impact of a large national deficit, and the impact of corporate mergers on debt. Manning even takes on the rise in student debt and student credit card use, the declining real wages for the lower / lower-middle class, and stagnated wages for the middle class, growing class inequality, and the marketing practices of the credit card corporations. Very useful critique / analysis for economics/history nerds like me.

[Jon Stanton · Rating 3 out of 5]

Very academic read as the author is a professor. Good information, but a bit difficult to get through it all.

[Paul · Rating 3 out of 5]

The book's not a quick read, but it's an engrossing study of how the expansion of the credit industry has made credit cards an important part of American society - mostly to our collective detriment. Even considering the information in the book is now several years old, Manning makes it easier to understand how and why we got into such trouble with credit cards and the consequences to many of us as a result. After reading this book, you'll probsbly decide that the recent credit card rule changes didn't go far enough.

[Justin · Rating 5 out of 5]

This book along with Strapped were facinating. How did credit cards come about? How did the legislation become so favorable to the banks? Why do the banks bend over backwards to lend me money and who really owns the credit cards? All these questions and so much more are in these books. This book follows the dark history of Visa and mastercard and why we must be wary.

[Brie · Rating 3 out of 5]

This is a great book... but needs to be updated with current data/information.

[Ruzzel · Rating 3 out of 5]

Manning explains to some degree the impact of a large national deficit, and the impact of corporate mergers on debt.




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[Molina · Rating 1 out of 5]

People should know better.

[Souk nanny]

it make i know more about credit card.