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Christina Palmer
Professor Springer
GEW 101
17 November 2014
I Can Smell Your Wallet
Being a college student, I learned the true meaning of being in debt. With financial
monstersi controlling society now days it seems harder to live a comfortable life. Financial
monsters are considered the big businesses, credit card companies, banks, and all the areas of
finances that handle the money within the government. An unconventional monster is a group,
someone, or something that abuses the power they hold. Financial monster abuse their powers by
working the system to make life easier for some and harder for others. They do not care for
others living environment and only care that they are living conformably. It is sad to see the
world working this way, and that Im directly related to the situation it seems a lot more
important because of the amount of loans that need to be taken out for me to attend college.
Financial monster make it difficult for individuals in the middle class or lower and individuals
who want to attend college to live comfortably and get out of debt.
The middle class suffers most of the economic struggles. The struggles that middle class faces
arent comparative to that of others classes. Being in the middle class I understand this
completely. I barely make enough to get by and earn little to no help. With looking at my W2 it
seems that I make a lot but you dont get to see how much goes into bills alone and if I get sick I
either dont go to the doctors and eat not eat and dont go to the doctors. According to Teresa

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Sullivan, Elizabeth Warren, and Jay Westbrook authors of The fragile Middle Class: Americans
in Debt discusses the rising debt middle class Americans are currently facing. Its about how the
middle class makes up the economy and values of the middle class that got them through the
toughest of times.
The middle class, backbone of the Republic, has experienced one of the longest runs of
economic prosperity in its history. Yet in the bright blue sky there is a line of clouds. We
cannot know if it is just another summer squall or a terrible storm headed our way.
Prognosticators examine the entrails in their economic models while the rest of us cross
our fingers. Stolid middle-class people, such as ourselves, would naturally check the
house for holes in the roof and rotten floorboards (1).
They talk about how the middle class is the foundation of it all. The middle class has had it the
hardest for the fact that we get the least amount of slack or help from anywhere. We can never
tell if the economic struggles we are facing are just temporary or something worse. While other
look for the answer and predict the economic future for them yet whereas the middle class can
only hope. They state the middle class as emotionless, slow, and dim-witted who would just be
looking or the holes in the celling. Meaning we would be the ones left in the dark making sure
our house wont flood in next storm. In real life this is a serious problem without the middle there
will only be a rich and poor and no middle ground or silver lining. The fact that the economy can
put such a squeeze on the middle class to the point where there might not even be a middle class
anymore shows how malicious financial monsters truly are.
There is a squeeze on the middle class with paying debt. With the increasing debt there is
even more of a push on the middle class to pay it off. They receive minimal help in this area
which adds to the stress of their everyday life. Being in the middle class I know that debt is
unavoidable and hard to pay back. With getting little to no help with bills, loans, or anything else
makes it even harder to live a comfortable life and get out of debt. According to Edwin Wolff

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author of Recent Trends in Household Wealth in the United States: Rising Debt and the MiddleClass Squeezean Update to 2007 discusses the facts about how middle class suffers from debt
and how recent trends are causing a new rise debt and how it puts a strain on the middle class.
He says,
Among the middle class, the debt-income ratio reached its highest level in 24 years. The
concentration of investment-type assets generally remained as high in 2007 as during the
previous two decades. The racial and ethnic disparity in wealth holdings, after stabilizing
during most of the 1990s, widened in the years between 1998 and 2001, but then
narrowed during the early and mid-2000s. Wealth also shifted in relative terms away from
young household (particularly under age 45) and toward those in age group 55 to 74(4)
Edward Wolff is saying that over the past 24 years middle class debt is the highest it has ever
been. The reasons are simple its the way the wealth is distributed and lack of help. There is a
major gap of wealth within the minority and youth community it shifted to the older aged groups.
Most wealth comes from investment but there is a fear of invest due to the bleak future. With the
gap only getting wider we need to change something to relieve the pressure from middle class.
The balance needs to be returned and taken from the financial monsters, which are making it
difficult to live without debt for the middle class.
Credit cards target the middle class and keep them in debt with hidden features. With
credit card companies contently promoting credit cards and how easy they make life it seems so
perfect. Barrow money and just pay it back with your next pay check right simple. They are so
many hidden aspects to that though such as ARPs, interest rates, hidden fees. The reason the
middle class has the most credit card debt is because thats who the credit card companies target.
Reasoning for this is simple; the upper class doesnt need credit cards because they have the
money to cover it. The lower class gets help from the government and can afford the credit cards,
most dont even get approved. This leaves the middle class who need the money and use a credit

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card and as it builds up because they arent properly educated in the situation. According to
Randy Hodson, Rachel Dwyer, and Lisa Neilson authors of Credit Card Blues: The Middle
Class and the Hidden Cost of Easy Credit discussed the hidden cost of credit and how it impacts
the middle class and puts them into deep debt. They said,
Consumer credit can fund current consumption, either for necessities or for conveniences
or luxuries. But debt is different from other sources of incomeit has to be repaid.
Income is thus a clear addition to ones personal balance sheet. Credit is more ambiguous.
It can help pay current bills but potentially at the cost of future consumption. Use of
credit thus poses significant risks for ones long-term financial situation. Consumer debt
is also typically uncollateralized so that it must be repaid with future incomeincome
yet to be secured(316)
They talk about how credit cards play a major role and how it can entrap someone in debt. Debt
is something that must be repaid and is different from getting money from working or
government help. Credit cards are a helpful tool if used correctly and use wisely. The risk is
greater than the reward though, with the cost of future payments and puts financial stability into
questions. The more you use your credit card the more risk to a long term financial situation is
apparent. With credit cards you are spending money that you cant be sure will be there if one
were to get fired then what is to happen with the debt, its still expected to be repaid. With the
current debt issue credit cards shams are more apparent. One needs to be educated before
jumping into credit cards the middle class suffers most from this but so do the college students.
Credit card companies are some of the biggest financial monster and a leading cause of debt in
middle class.
Credit cards use in college student worsen there financial stability. Being a college
student financial stability has gone out the window. Knowing that college students are nave and
new to the adult world makes them an easy target. They get into debt easier and are more

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ignorant to the situation on debt and credit and how it affects you in the long run. They arent
educated well enough before they are set off on their own .s. According to Jill Norvilits author of
Changes over Time in College Students Credits Card Attitudes and Debt: Evidence from One
Campus which discusses the factors of credit cards and the way theyre view direct from a
campus view. It shows a real lif aspect to the data research. She states,
Credit card debt is viewed as arising from multiple factors, with demographics,
personality, and social and educational variables playing a role. Some demographic
factors, such as year in college, are related to financial well-being, with students reporting
increasingly worse financial well-being with advancing year in school
When looking at debt with credit cards everyone has a view and sometimes it negative. There are
many reasons why credit cards are on rise from anywhere concerning ones education, race,
and/or personality. Another major factor is year in college which also shows a rise in debts. With
the information from an actual campus showing that students advancing in their education are
financial worse off than those who dont. Its sad that for someone to further their education they
risk complete financial stability. The credit card companies are the financial monsters in this
aspect because they entrap young nave college students with hidden bylaws. They have no
regards for the stability of others
Credit card debt affects the emotional state of college students for the worst. With all the
stresses of grades, success, and affording it all there really isnt room to stress about more debt
on top of that. With credit card debt as an added stress on college students put a toll on their
emotion status. They are barely able to with stand the daily struggles of living alone and
becoming an adult to have all the debt piled on. Credit card companies feed off this because its
easy money to them. Eileen Hogan, Sarah Brtant, and Leslie Overymyer-Day authors of
Relationships Between College Students Credit Card Debt, Undesirable Academic Behaviors
and Academic Preformance discusses the direct relation between college students credit card

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debt and the students academics and behavior.
When students accumulate debt to a problematic level, they can respond in two ways:
increasing income by getting jobs, working more hours, or borrowing; and/or engaging in
various forms of dysfunctional behaviors such as drinking. Either response could
negatively impact study and attendance behaviors and, eventually, grade point average
and learning, time in college, and dropping or stopping out of college(103).
Being on ones own is stressful as is without worrying about credit card debt. When debt gets to
a level where the student feels as if they can no longer handle the problem It starts to really show.
They way students show it varies from student to student. The more common ways are to try and
get jobs, increase work hours barrow and/or more destructive behaviors such as drinking and
drugs. With this adding on to the distractions students start to let grades fall short. They stress to
a point where giving up and dropping out sounds better. There is a real problem here with student
stressing about debt to a point of self-destruction. Students want to succeed but are afraid of the
amount of debt. The financial monster have student afraid to continue with their education to the
point some rather drop out then keep trying.
College loans are taking advantage of students wishing to advance their education. With
the current loan system being as corrupted it doesnt help students get to college at a fair price.
With the rates and fees to get a loan for college its almost not worth it anymore. The fact that
most first year students dont have approvable credit for the loans brings in the needs for outside
sources but sometimes there not able to be approved. So with massive loans up to ~$25,000 first
year aloe already put stress under the student. According to Richard Fossey author of
Condemning Students to Debt: Is the College Loan Program Out of Control which discusses
how the loan system is robbing student and is out of control over charging students. There are
worrisome signs that student borrowers are finding their loans more burdensome than in the past.
If so, the default rate could well start back up again, as debtors find themselves squeezed tighter

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and tighter by their student debts. He is saying basically that with the current loan rates and debt
Students are saying that theyre more of a burden than ever before. With the debt increasing there
is a higher risk for loan defaults which will only hurt the economy even more so. People in debt
will find that they are being sucked dry because of their student debts and how the loan system in
very unforgiving. The life aspect is that its only getting worst and soon people wont be able to
afford to pay off student loan which can cause inflammation of the economic system. The
financial monsters dont care that college students are already struggling as long as they get their
money.
With the debt crisis its difficult for minorities to get any science degrees. The reason is
that there is already a financial setback for minorities. Those trying to achieve a science degree
find it increasingly difficult to do so due to the debt thats created. The debt crisis is cause
colleges to charge more to obtain a degree. And the fact that less people are able to obtain a
degree the more our field of science is affected. Minorities were able to overcome many things
but this not only hurts them but the entire economy system. According to Jeffrey Mervis author
of Minorities Run Up Significant Debt in Earning STEM Ph.D.s. which discusses the struggles
and adversities faces by minorities today in trying to earn Ph.D.s in the STEM department. He
says,
Many African-Americans and Hispanics who pursue a career in science must wrestle with
a dearth of role models, a lack of opportunity, and sometimes even outright
discrimination. One factor not typically on that list of barriers to entry is the cost of a
Ph.D. But a new study suggests that it should be, and that those groups, traditionally
underrepresented in science, also owe much more than their white and Asian counterparts
by the time they graduate( 1510)
Most of the minorities are face with many obstacles in achieving a STEM degree. The fact that
they end up paying much more and end up financially ruined in attempts to better their education

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is a shame and looks bad for the educational system. I blame the financial monsters being the
College education system for making this even probable. Minorities have overcome many
adversities in todays day and age to here and better themselves. Everyone should be able to get a
quality education to better the world. With it getting even harder to obtain a degree in STEM
then less people try to obtain one and with that the entire program suffers. The financial monsters
are now interfering with entire economic system for the worse. They can be related back to how
financial monster make it difficult to ever be out of debt.
Science cant function because of debt crisis. With the

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A: Debt causes adolescents to stress and act out
A: Science cant function because of debt crisis
A: Debt effects youths self-esteem
E: As such, psychological distress caused by financial stress has an effect on
interparental conflict and contributes to problems in parenting. This disruptive
parenting subsequently mediates or explains the influence of parental distress and
interparental conflict on problem behavior or other child and adolescent outcomes.
( Financial Stress, Parent Functioning and Adolescent Problem Behavior: An Actor
Partner Interdependence Approach to Family Stress Processes in Low-, Middle-, and
High-Income Families)
E: current US debt crisis sets the stage for a potential tipping point in federal
science spending. The ideology that government-sponsored science is crucial to the
well-being of society has eroded along with the cold-war security agenda, which
embraced and fortified science for decades. Meanwhile, science has been pulled
repeatedly into political clashes on cultural issues.
E: The effects of debt on mastery and self-esteem should therefore vary for young
adults from different class backgrounds as disparities between these groups have
been exacerbated by historical trends in social inequality. The psychological
consequences of debt will thus depend in part on the class-based opportunities and
constraints youth face. Youth from lower-class households may be particularly
affected either positively or negatively because debt has become more
important to class mobility as their family resources have been eroded and
prospects for working-class jobs with good wages have dried up (Youth debt,
mastery, and self-esteem: Class-stratified effects
of indebtedness on self-concept)

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iEndnote

A Financial monster for the purpose of this essay will be defined as any company or personal
in the money industry trying to gain a foot hold on in their lives at the complete disregard for anyone
else.
Works Cited
Dwyer, Rachel E., Laura McCloud, and Randy Hodson. "Youth Debt, Mastery, and Self-esteem: Classstratified Effects of Indebtedness on Self-concept." Social Science Research 40.3 (2011):
727-41. Academic Search Premier. Web. 24 Nov. 2014.
Fossey, Richard. "Condemning Students to Debt: Is the College Loan Program Out of Control?" Phi
Delta Kappan 80.4 (1998): 319-21. Academic Search Premier. Web. 17 Nov. 2014.
Gulledge, Jay. "Debt Crisis: Crunch Time for US Science." Nature 477.7363 (2011): 155-56. Academic
Search Premier. Web. 17 Nov. 2014.
Hogan, Eileen A., Sharah K. Bryant, and Leslie E. Overymyer. "RELATIONSHIPS BETWEEN
COLLEGE STUDENTS' CREDIT CARD DEBT, UNDESIRABLE ACADEMIC
BEHAVIORS AND COGNITIONS, AND ACADEMIC PERFORMANCE." College
Student Journal 47.1 (2013): 102-12. Academic Search Premier. Web. 24 Nov. 2014.
Mervis, Jeffrey "Minorities Run Up Signifi Cant Debt in Earning STEM Ph.D.s." SCIENCE 340
(2013): n. pag. Print.
Neilson, LA, RE Dwyer, and R. Hodson. "Credit Card Blues: The Middle Class and the Hidden Costs
of Easy Credit." Sociological Quarterly, 55.2 (2014): 315-40. Academic Search Premier.
Web. 17 Nov. 2014.
Norvillitis, Jill M. "Changes over Time in College Student Credit Card Attitudes and Debt: Evidence
from One Campus." Journal of Consumer 48.3 (2012): 634-47. Academic Search Premier.
Web. 24 Nov. 2014.
Ponnet, Koen. "Financial Stress, Parent Functioning and Adolescent Problem Behavior: An ActorPartner Interdependence Approach to Family Stress Processes in Low-, Middle-, and HighIncome Families." Financial Stress, Parent Functioning and Adolescent Problem Behavior:

An Actor-Partner Interdependence Approach to Family Stress Processes in Low-, Middle-,


and High-Income Families. 43.10 (2014): 1752-769. Academic Search Premier. Web. 24
Nov. 2014.
Sullivan, Teresa A., Elizabeth Warren, and Jay Lawrence. Westbrook. The Fragile Middle Class:
Americans in Debt. New Haven: Yale UP, 2000. Print.
Wolff, Edward N. Recent Trends in Household Wealth in the United States: Rising Debt and the
Middle-class Squeeze - An Update to 2007. Rep. no. 589. Hudson: Bard College, 2010.
Working Paper, Levy Economics Institute. Academic Search Premier. Web. 24 Nov. 2014.

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