But there is more. The cost of handling all those small payments has to be considerable, such that eventually there can be no point in bothering to make the collection.

Who wins? Well, the post office does. And the retailer that sold the goods in the first place. Except there will be no repeat business, assuming credit ratings stop further purchases.

Dave C’s point is well taken. But there was no such thing as instant gratification a generation or two ago. Most people simply waited until they could afford what they wanted. The along came “G Plan Furniture” and everything changed. Who’s to blame? Advertising seems to be the worst culprit in that they never educate if it means reducing the opportunity to sell. Hence the invention of “fine print”.

When I tried to contact Sprint after the debt was with collection I was told there was nothing they could do (several letters had sat waiting for me to return and they insisted that this was therefore my fault). However, when I had closed the account I was assured, verbally, that there would be no extra payments due. I asked if this should be put in writing and was told that it would not be necessary.

The overall problem is not only one for the “underclass”. Many people, some I know well, have been forced into credit card counseling and have even considered declaring personal bankruptcy. One example I am aware of owed $25,000 with 20% interest rates and earned around $50,000 a year. Again, the cynical would say “buyer beware” but the pressures of the consumer society are such that it is difficult for many to avoid running up large debt.

Education is certainly an issue here but there is also the question of consumer rights – when you owe you “never never” have the same rights as when you pay cash.

After leaving Houston foir several months I was caught with two collection agency attempts to retrieve moneys that I had already paid or had been told I didn’t need to pay. Guess what? Once the amount is transfered to the collection agency there is no way you can argue that there was an error – perhaps another reason why the debt collection is transfered away from the original lender/provider. In one case I negotiated the sum (about $100) down to 40% of the principal. Why did I pay? Simply because not doing so would tarnish an otherwise exemplary credit rating. As I wrote out the check I felt positively cheated.