Pizza, Pizza: Is Your Slice Getting Smaller?
So you’ve gotten a notice from Dewey, Cheatem & Howe, LLP, informing you that another one or your accounts is included in a bankruptcy petition. Ouch!! Notices roll in day after day, and providers are helpless against an onslaught of bankruptcies.
Of the 20 million Americans filing bankruptcy since the creation of the federal laws more than 100 years ago, 50% have done so since 1985. Interestingly, this period of time corresponds nicely to the relaxation of requirements that credit card companies have instituted in the last ten years.
“You tell me: twenty-five years ago, how many people would have borrowed money to buy a pizza?” asked Elizabeth Warren, a bankruptcy specialist at Harvard University Law School.
Is Domino’s to blame for all of this? Today people use their credit cards for Domino’s pizza,
We know one individual who carries no cash. Everything he buys is with plastic: gasoline, groceries, and lotto game cards are all charged: Michael Jordan tennis shoes and the latest Mel Gibson release at the video store.
Credit cards fill our wallets and purses. Many have high interest rates and low monthly payments. Credit cards are a way of life.
Have you examined your bankruptcy notices lately? Look at who is listed as creditors. Look at all the names of the “Plastic Vendors.”
It’s not going to get any easier!
Back to the Receivables Talk Index