Tuesday, 16 June 2009

Consumer Counseling

posted by debts.org at 01:44

Consumerism is nothing new and despite popular belief it isn’t wholly associated with the western world. The consumer age dates as far back as ancient Egypt, Babylon and ancient Rome when happiness appeared to work in tandem with consumption. Consumerism then, is consuming over and above what you require and the more you do it, the happier you are. Right?

That has certainly been the message behind the multi billion pound advertising industry that in itself consumes and never sleeps – constantly reminding us that we need to buy to be happy, or to be attractive, stylish, fashionable, loveable etc.

The last fifteen years has been consumerism’s heyday, in modern times at least. Buy now pay later, generous lending, credit card giveaways, 100% mortgages, to say nothing of holidays, cars, home entertainment systems and one family mansions.

'Consumer counseling' was not a term we often heard in the 90’s and the early part of this decade. In fact, prior to the sub-prime crisis of 2008, you would be forgiven for thinking it was an agency set up by consumers for consumers – ie don’t go to Selfridges for that Gucci belt when you can get it slightly cheaper at Harrods.

Debt management may have been considered an oxymoron. After all, debt is perfectly normal and therefore naturally unmanageable – since when was debt supposed to be managed?! Times have changed and consumerism is in its death throws. Of course it has been seriously wounded before but has come back to live another day. This time however, things are different.

Japan’s recession of the 1990’s lasted a decade and it took hard work, the manufacturing of affordable products and some pretty tough lessons before it could climb out of a very deep hole. However, it had one advantage over the recession facing the world today – it had countries to which it could export.

When the whole world is in the hole, including again Japan and even Dubai, there is nobody around to pull it out. Consumerism for that reason may die before anyone can resuscitate it.

So where does that leave today’s consumers. For one we need to change our thinking, for instance, the car doesn’t need changed every two years, the TV picture may not be high definition but you can still watch Corrie on it and restaurants are for special occasions only. The list goes on, quite a long way in fact.

We may kick and scream a little at first but we will change, simply because we must. Consumerism can no longer support us and vice versa. It was a relationship that was destined to turn sour, but we couldn’t see it while we were still living the honeymoon. Now jobs are going, mortgages are in arrears, bailiffs are at the door and you can’t get credit if your life depended on it. Yes, darling, the honeymoon is well and truly over.

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