Oprah Debt Diet Show, Part II

[disneysteve]

This is my point....they will never get out of debt if Lisa Bradley sort of eases into the deep end of the pool, reluctantly giving up each and every luxury as they go. They need to cut, and cut deeply. No amount of restricting premium cable channels and choosing more economical cell phone plans will get them out of this mess. The house needs to go, the car needs to go, and then they still would need to live on a bare bones budget for years to pull out of that mess.

What I don't get is this: Surely Oprah's people and the financial experts have run the numbers, too. They must be seeing something we aren't to think that this family has a chance. I don't think Oprah would do the whole series just to show the family fail and end up in bankruptcy - wouldn't be very inspirational. So do you think there are some significant financial details that haven't been revealed yet that will alter the situation?

 

[dvcgirl]

Unfortunately, like many others who have watched this series so far. I have a hard time believing the 2 families featured yesterday are going be successful. They are just not willing to sacrifice enough. Also why isn't anyone suggesting these folks take on a second job?

I wondered this too. The women in particular seem to have an awful lot of extra time on their hands. I understand that sometimes change needs to be gradual, but for the Bradleys in particular, I don't think "gradual change" is an option. And early on, they don't seem to grasp the concept of just how much trouble they are in. The other interesting thing we thought when watching show #2. For people who are 200K in consumer debt, they really don't have a heck of a lot to show for it. Sure, the big TV went back, and the piano was exchanged, but other than that....where on earth did all of that money go. Maybe the closets are stuffed with clothes...? But still, I'm betting a lot of that debt went into the salon, take out food, vacations....things that are long gone by now.

 

[kaseyC]

This is my point....they will never get out of debt if Lisa Bradley sort of eases into the deep end of the pool, reluctantly giving up each and every luxury as they go. They need to cut, and cut deeply. No amount of restricting premium cable channels and choosing more economical cell phone plans will get them out of this mess. The house needs to go, the car needs to go, and then they still would need to live on a bare bones budget for years to pull out of that mess.

MTE!! Why are they not downsizing the home. They only have two children. Sell the cars and purchase a nice reliable used car.
In reality, these families need a complete lifestyle makeover. They need to learn the differences between wants and needs.

 

[dvcgirl]

What I don't get is this: Surely Oprah's people and the financial experts have run the numbers, too. They must be seeing something we aren't to think that this family has a chance. I don't think Oprah would do the whole series just to show the family fail and end up in bankruptcy - wouldn't be very inspirational. So do you think there are some significant financial details that haven't been revealed yet that will alter the situation?

Jean Chatsky implied during the show yesterday that there was more debt than they initially were told. She made a comment about Lisa having to fess up about everything. However, I think that the Bradleys were so incredibly sloppy with managing their finances that they just don't know what they owe at this point. I wouldn't be surprised if they end with Bradleys by saying that "they continue to work on the situation".....but unless they file, I don't see how they keep that house and make it. Also, I wonder if they already have liens on their property, but simply pushed those notices aside as well.....

 

[kaseyC]

The other interesting thing we thought when watching show #2. For people who are 200K in consumer debt, they really don't have a heck of a lot to show for it. Sure, the big TV went back, and the piano was exchanged, but other than that....where on earth did all of that money go. Maybe the closets are stuffed with clothes...? But still, I'm betting a lot of that debt went into the salon, take out food, vacations....things that are long gone by now.

That is the exact thing I mentioned to DH when we were watching. Considering the amount of debt, I expected the interior of their home to look like an Ethan Allen showroom. Besides the all the TVs and piano the house was pretty sparse. The walls were still builders white.

I will keep on watching because I believe we can all learn from the financial advisors. Jean gave me a definite kick in the pants about ATM charges, I am definitely guilty of going to the closest ATM and eating the fee instead driving to my banks ATM.

 

[Free4Life11]

when this is all said and done it would be cool for oprah to do a foloow up in like 2 years and see where they are
i would htink in 3 years they would still owe$,
do you think Oprah will bail these families out? and if she did do you think thye would be in debt again within a couple years?

I don't get the feeling that Oprah is even considering this. I'm sure the show is footing the bill for the three experts, which I can understand. Then again these experts all have books, don't they? So by going on the show they will likely sell books.

 

[disneysteve]

That is the exact thing I mentioned to DH when we were watching. Considering the amount of debt, I expected the interior of their home to look like an Ethan Allen showroom. Besides the all the TVs and piano the house was pretty sparse.

Because they aren't blowing their money on stuff as much as they are on services: hair care, cable tv, dining out, etc. Plus the cars. And no mention has been made of vacations. Somehow I don't imagine they are tent camping at the state parks or staying at the Days Inns.

 

[Kay7979]

I didn't watch the first show, and missed 15 minutes of the second one, but I wonder if it would help get through to these people if the counsellor added up how much these people spent on interest, late fees, and ATM fees for the month (or year) then translated that figure into how many clothes, shoes, TVs, furniture, and dinners out they could buy with the money they just wasted on interest. If it were me, I would be thinking in terms of the money I could have saved and how much I could have made by investing the money, but that's a step or two ahead of these people at this point! Since they are impressed by "stuff" show them a big poster, graphically displaying all the "stuff" they could have bought with the wasted fees. If that still doesn't sink in, take a pile of $100 bills and set them on fire, because what these people are doing with their money amounts to about the same thing.

 

[Nicolepa]

Even with the cuts they made the Bradly's are still running in the red. The whiteboard showed their expenses were $7000 a month and their income $5300. I calculated all of their cuts and they are still short over $60 a month. You can't pay down debt if you are spending more than you get.

According to Lisa's journal she spent $30 on her hair. 30 x 52 is only $1560 a year. Where is the other $5000 going? Even if you add in $50 every month for a cut that is only $2200 a year.

 

[dvcgirl]

Even with the cuts they made the Bradly's are still running in the red. The whiteboard showed their expenses were $7000 a month and their income $5300. I calculated all of their cuts and they are still short over $60 a month. You can't pay down debt if you are spending more than you get.

According to Lisa's journal she spent $30 on her hair. 30 x 52 is only $1560 a year. Where is the other $5000 going? Even if you add in $50 every month for a cut that is only $2200 a year.

Their expenses have to be higher than that. Unless they just aren't counting their consumer debt at all........

 

[disneysteve]

According to Lisa's journal she spent $30 on her hair.

That had to be an error. Even $130/week is less than $7,000/year.

 

[mickeyfan2]

That had to be an error. Even $130/week is less than $7,000/year.

Maybe she only did her hair and not the other things she normally does. They never broke out how she spent the $7000/year. Some appointments are more expensive than others. BTW I know many senior women who go to the "Beauty Parlor" each week.

 

[kjs1976]

Why would you even spend ANY unneccesary money i.e., hair, daughter's dress, etc. if you were THAT much in debt????!!!!!!! How are things not forclosed and repossessed in the Bradley's case? And what is with the husband???!!! Denial is not just a river in Egypt....

I had hope for Marnie and her girls when she said she'd help them sell their clothes...I did this on E-bay two years ago when I lost weight. I sold a lot of Old Navy and Gap brands, plus some department store designer labels and made over $300 when I was done (in 1 year and 1/2). They could make a killing if they sold clothes, not to mention all the crafting supplies she has that are unused.

Ugh....I hope they get a big wake up call soon because I will puke if I have to keep watching them get "sick" of their bills, yet refuse to cut every possible corner in order to just get their heads above water!

 

[disneysteve]

Maybe she only did her hair and not the other things she normally does.

That's true. That $7,000 isn't necessarily evenly divided among all the weekly visits.

 

[disneysteve]

Why would you even spend ANY unneccesary money i.e., hair, daughter's dress, etc. if you were THAT much in debt????!!!!!!!

You're absolutely right, but of course if they thought that way they wouldn't have gotten into debt in the first place.

 

[kfeuer]

According to Lisa's journal she spent $30 on her hair.

Didn't they say something about her having her daughter's hair done for $30? Perhaps I misheard (I have small children running around) but when her husband was ratting her out I thought that's what they said (in addition to the dress thing).

 

[disneysteve]

Didn't they say something about her having her daughter's hair done for $30? Perhaps I misheard (I have small children running around) but when her husband was ratting her out I thought that's what they said (in addition to the dress thing).

From the Oprah website:
"Lisa spends $30 a week getting her hair done, and Jean confronts her at the beauty salon. Lisa refuses to cut back on her weekly visits."

 

[mickeyfan2]

From the Oprah website:
"Lisa spends $30 a week getting her hair done, and Jean confronts her at the beauty salon. Lisa refuses to cut back on her weekly visits."

If she was only spending $30/week that would be $1560/year, about 23% of the original $7000 and a move in the right direction. She does get $140/week to spend on gas, hair, eating out, etc. She could afford this. I think this was a cheap week and will cost more on some weeks.

 

[MyGoofy26]

I would guess the $30 is just for a style then. The "hair budget" must include some pricy cuts, colors, straightenings, etc. Depending on what she's getting and how often, those can easily run up to a couple hundred a pop at some salons.

 

[pepperw23]

They are also in debt to a payday advance company that can charge over 300% in interest.

And they seem so nice on the commercials. "Let us help you pay the unexpected bill".