Debtors Anonymous
Founded | 1971 |
---|---|
Location | |
Area served | Australia, Bali, Brazil, Canada, Germany, Ireland, Japan, New Zealand, United Kingdom, United States, Spain, Argentina |
Website | debtorsanonymous.org |
Formerly called | Penny Pinchers, Capital Builders |
Debtors Anonymous (DA) is a twelve-step program for people who want to stop incurring unsecured debt. Collectively they attend more than 500 weekly meetings in fifteen countries, according to data released in 2011.[2] Those who compulsively incur unsecured debt are said to be engaged in compulsive borrowing and are known as compulsive debtors.
DA encourages careful record keeping and monitoring of finances—including purchases, income, and debt payments—to get a clear picture of spending habits. This information is used to develop healthier spending practices, supporting one in keeping a reasonable quality of life while still repaying debt. Similarly, DA recommends developing plans for the future to increase income.
DA's program is intended to facilitate a progressive
In the mid-1990s, sociologist Terrell A. Hayes conducted in-depth interviews with a convenience and snowball sample of forty-six members of DA Hayes found many of the members interviewed only partially accept the ideology of the organization and that parts of DA's program, such as stigmatizing labels used to describe members, may actually hinder acceptance of DA's ideology.[3][4]
Development
In 1968, members of Alcoholics Anonymous (AA) who believed that their financial difficulties were caused by an addictive disease not unlike alcoholism founded an organization named Penny Pinchers, which they later renamed Capital Builders.[5][6][7] The founding members believed their financial problems stemmed from an inability to save money, and they practiced making daily deposits to their savings accounts. Later they recognized their problems were not caused by an inability to save but rather an inability to stay solvent.[5]
In early 1971, the group members came to believe that incurring unsecured debt was the threshold of their disease and committed to a rigorous twelve-step approach to prevent incurring further unsecured debt.
Literature
DA adapted AA's format, making only five changes to AA's Twelve Steps and Twelve Traditions: "DA" and "Debtors Anonymous" replaces "AA" and "Alcoholics Anonymous", "debt" replaces "alcoholism", "compulsive debtors" replaces "alcoholics", "incurring unsecured debt" replaces "drinking", and "debtor" replaces "alcoholic."[9] In 2002, DA published a list of 12 promises similar to the 12 promises appearing on pages 83–84 of Alcoholics Anonymous.[10][11] DA's original literature also includes the Twelve Tools of Debtors Anonymous, a list of practices to recover from compulsive getting into debt.[12]
Official DA literature is either approved by the DA General Service Board (GSB) or by vote at a DA annual World Service Conference, based on whether it is service literature (related to the functioning of DA groups) or recovery literature (all other DA literature).[13] Such literature is "Conference-approved."
DA publications include the books, A Currency of Hope,[7] The Twelve Steps, Twelve Traditions, and Twelve Concepts of Debtors Anonymous,[14] and Debtors Anonymous Twelve Steps Study Guide for D.A. and B.D.A., as well as several pamphlets.[15] A Currency of Hope includes DA's adaptations of the Twelve Steps and Twelve Traditions, a description of compulsive getting into debt, a brief history of DA, and 38 stories written by DA members explaining how DA has affected their lives.
Membership
Debtors Anonymous is fundamentally an organization to facilitate recovery from "compulsive debting."
DA members may identify themselves additionally—or more specifically—as compulsive shoppers or spenders,
Underearners are people with viable skills who are psychologically incapable of earning enough money to support themselves without incurring unsecured debt.[27] DA provides a list of 12 signs that are symptomatic of compulsive underearning.[31] Underearning can lead to become a "compulsive pauper,"[32] a term describing people who are consistently broke and in financial crisis.[20] A related term, "financial anorexia," describes "someone who takes inordinate amounts of pride in having few financial needs and is more comfortable living in deprivation."[26] Financial anorexics, while they may find it difficult to spend money on themselves, are not necessarily underearning.[20] Although compulsive underearners may not actually be in debt, if they have a desire to avoid incurring unsecured debt, they are welcome in DA.[32]
Psychiatric categorization
In the previous version of the
Terminology
The phrase "terminal vagueness" describes a characteristic of compulsive debtors, a systematic avoidance of monitoring finances–including avoiding communication with creditors–leading to an overestimation or underestimation of account balances.[10][35][36] An overestimation may result in incurring unsecured debt.[37] "Clarity" is the opposite of vagueness, requiring a clear picture of how much money one has and owes, at any given time.[26] DA encourages "awareness" of the cultural pervasiveness of debt and overspending.[26] DA suggests members stay aware of manipulative advertising tactics as well as thoughts and feelings that trigger their desire to spend money.[37][38]
Excessive preoccupation with indebtedness can lead to both "emotional indebtedness" and "self-debting." "Self-debting" is the inability to identify or fulfill personal needs because of such preoccupations, whereas emotional indebtedness is the accompanying stress, anxiety, feelings of hopelessness or despair, and even suicidal ideation. "Self-debting" manifests in various ways such as taking drastic measures to hide evidence of problems with money or debt, paying creditors to the detriment of one's needs, or even spending excessive amounts of time managing finances.[3]
"Abstinence" in DA is abstaining from incurring any new
A belief in an "abundant universe" underlies much of the DA program.[26] Competition is learned from, but not feared, as there are enough resources for everyone.[40] This perspective counters deprivation thinking that accompanies "compulsive debting", overspending, and underearning.[41]
DA members may be vague or unfocused about their goals in life. For this reason, DA encourages members to develop "vision," the ability to form a clear and specific picture of what they want to do in life. Visions are discovered by abstaining from incurring unsecured debt, following the Twelve Steps and using the Twelve Tools. Ignoring one's vision is similar to "self-debting", it may result in physical or emotional distress, or preoccupation with other people's lives rather than focusing on oneself.[42]
Self-help groups, including DA, urge members to change their
Record keeping and planning
Spending records and spending plans
"Keeping numbers" is a daily practice that requires recording each
Spending records are used to create spending plans.[26][46] A spending plan is essentially a list of all goods and services to buy in a given month.[36] Members regularly review their spending plans and assess whether items and amounts in the plan are reasonable.[36] The spending plan puts the member's needs ahead of the creditors and should not cause one to incur unsecured debt. Spending plans should include categories for income and debt repayment.[26][45] Unless one is having trouble meeting very basic needs, it should also include a category for savings.[26]
Accompanying a "real" spending plan is an "ideal" spending plan, detailing what one's finances would look like in an ideal universe, how much money one would earn, and how it would be spent. The ideal spending plan focuses efforts on increasing income and following a vision for the future.[26][46] DA avoids using the term budget, as its connotation may imply rigid categories. A spending plan is designed such that one has the best possible life under their present financial circumstances. Spending plans are flexible and convey that there are options, that one chooses how to spend money.[26]
Action plans
DA encourages members, after several weeks participation, to organize "pressure relief meetings." In these meetings, a newer member invites two veteran members (with at least 90 days of abstinence, typically a male and a female) to review his or her financial records in detail and give practical advice.[46] These occur outside of regular meetings, and are a way for members to receive suggestions from each other.[36] The member organizing the group typically brings his or her spending records, and a list of issues that he or she would like assistance with.[26]
"Action plans" are developed during pressure relief meetings based on the suggestions of the other members, a spending plan may also be developed or modified.[26][45] Actions plans are lists of specific actions to resolve debts and improve one's financial situation.[37] Members organize pressure relief groups about once a month. In times of crisis, however, they may hold them more often.[26]
Debt repayment plans
Practicing the Fourth Step of the DA's Twelve Steps includes not only a moral inventory of personal characteristics but also an inventory of personal financial history including a list of current outstanding debts.[26][46] Similarly, the Ninth Step includes monetary debt repayment.[26][46] Following the language of the Ninth Step, however, the payment schedule should not injure the debtor or the creditor.[35] The goal in repaying creditors is to do so while living well. DA members find their ability to pay their creditors improves when they take care of themselves. Payments to creditors should be consistent and manageable. In this way, members are able to offer detailed rationale for their debt repayment schedule, allowing for empowered and functional negotiation with creditors. In this spirit, a certain amount of money is allocated for debt repayment each month whenever possible.[26][35][47]
One might begin making a debt repayment plan by categorizing secured and unsecured debt, including the name of the creditor, the total amount owed, when the amount will be paid off, and the current monthly payment. For each debt one would list the current balance,
DA recommends recording each payment made to a creditor, noting the original amount of the debt, the date the payment was made, the amount of the payment, and the remaining balance. Further, DA advises keeping a record of retired debts to record the date each debt was fully paid.[47]
Although it may conflict with
Analysis of interviews with members
In an independent study using convenience and snowball sampling, sociologist Terrell A. Hayes found and surveyed 46 DA members from July 1993 to June 1995.[49][50] 42 of the members surveyed were attending meetings in the Eastern United States, the remaining four attended meetings in Austin, Texas.[49][50] An analysis of the data Hayes collected revealed specific parts of DA hindered acceptance of DA's overall ideology. These included: labeling, differences between DA meetings and DA members, lack of a clear position on bankruptcy and debt-shifting, and common use of unapproved literature.[4]
Labeling
Hayes performed a
Other mental health professionals have argued that DA participation reduces shame,[26][46] and some, such as Law Professor A. Michele Dickerson suggested that something like Debtors Anonymous may be a useful addition to debtor education precisely because it would add a guilt-based component to the curriculum. The stigmatization would, Dickerson argues, change the debtor's economic philosophy and reduce the likelihood of impulse buying.[51]
Differences between DA meetings and DA members
Hayes' analysis found differences between DA meetings and DA members.
Bankruptcy and debt-shifting
Hayes' analysis also noted issues with the way that bankruptcy and debt-shifting are addressed.[4] DA's pamphlet, Debt Payment, explains that bankruptcy is an "outside issue," an issue on which DA has no opinion. The pamphlet elaborates, however, that some DA members found bankruptcy only provided a "quick fix" and did not correct the underlying issues causing them to incur unsecured debt. The pamphlet also notes other DA members believe bankruptcy is a proper course of action in some situations.[47] Debt-shifting is the practice of transferring debt from one creditor to another in order to get a lower interest rate or otherwise make it easier to repay the debt. Debt-shifting is not discussed in official DA literature, although it is discussed in an unofficial auxiliary book based on DA principles.[53] Because DA does not take an official position on bankruptcy and debt-shifting, some groups take stronger positions on these topics than others which can alienate potential members.[4]
Unapproved literature
Hayes found that the use of unapproved literature in DA groups has been a source of conflict among members.
Parallel organizations
Debtors Anonymous groups, independent of those already meeting in New York, were formed in the late 1970s by the
In response to the
See also
- Compulsive buying disorder
- List of twelve-step groups
- List of Twelve Step alternate wordings
- Underemployment
- Jerrold Mundis
Notes
- ^ Debtors Anonymous 1999, p. 11
- ^ Debtors Anonymous 2011
- ^ a b c d Hayes 1996
- ^ a b c d e f g h i Hayes 2001–2002
- ^ a b c d Debtors Anonymous 1999, p. 23
- ^ Sarra & Sarra 2009
- ^ a b c Greco & Fagen 2009
- ^ Black 2009
- ^ Debtors Anonymous 1999, pp. 12–13
- ^ a b c Debtors Anonymous 2001
- ^ a b Bill W. 2002b
- ^ Debtors Anonymous 1999, pp. 15–16
- ^ Debtors Anonymous 2009
- ^ a b Debtors Anonymous 2016
- ^ Harber 2009
- ^ Debtors Anonymous 1999, pp. 10–11
- ^ a b c Debtors Anonymous 1999, p. 10
- ^ a b Debtors Anonymous 1999, p. 19
- ^ a b c Debtors Anonymous 1999, p. 21
- ^ a b c d Debtors Anonymous 1999, p. 17
- ^ Harber 2009a
- ^ Debtors Anonymous 1999, pp. 21–22
- ^ Debtors Anonymous 1999, p. 14
- ^ Harber 2002
- ^ Oliven 1998
- ^ a b c d e f g h i j k l m n o p q r s t u v w Levine & Kellen 2000
- ^ a b Goldman 2000
- ^ Debtors Anonymous 2004, p. 1
- ^ Debtors Anonymous 2002b
- ^ Debtors Anonymous 2004, p. 3
- ^ Debtors Anonymous 2006
- ^ a b Debtors Anonymous 2002c
- ^ a b c Vyse 2008, p. 28
- ^ a b Piquet-Pessôa et al. 2014
- ^ a b c Debtors Anonymous 2002f
- ^ a b c d e Morenberg 2004
- ^ a b c d Debtors Anonymous 1999, p. 16
- ^ Debtors Anonymous 2002g
- ^ Zietlow & Seidner 2007, p. 5
- ^ Debtors Anonymous 2002e
- ^ Debtors Anonymous 2004b
- ^ Debtors Anonymous 2002h
- ^ a b Ronel & Libman 2003
- ^ Debtors Anonymous 2002j
- ^ a b c d Debtors Anonymous 1999, p. 15
- ^ a b c d e f g Benson & Bengler 2004
- ^ a b c d e f Debtors Anonymous 2002
- ^ Brazer 2000
- ^ a b c d Hayes 2000
- ^ a b Hayes 2010
- ^ Dickerson 1998–1999
- ^ Debtors Anonymous 2002d
- ^ Mundis 2003, pp. 219–220
- ^ Bill W. 2002a
- ^ Debtors Anonymous 2001a
- ^ Roth 1981
- ^ Williams 2001
References
- Black, Claudia (27 November 2009). "Debtors Anonymous offers group support for spending addicts". Los Angeles Times. Archived from the original on 2009-11-30. Retrieved 2009-12-19.
- Benson, April Lane; Bengler, Marie (2004). "Chapter 14: Treating Compulsive Buying". In Coombs, Robert H. (ed.). Handbook of addictive disorders: a practical guide to diagnosis and treatment. Hoboken, N.J.: Wiley. pp. 451–488. OCLC 53224831.
- Brazer, Leonard (2000). "Chapter 17: Psychoeducational Group Therapy for Money Disorders". In Benson, April Lane (ed.). I shop, therefore I am: compulsive buying and search for self. Northvale, N. J.: J. Aronson. pp. 398–430. OCLC 301650820.
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- Debtors Anonymous (2002g). Awareness. Debtors Anonymous General Service Board. P-116.
- Debtors Anonymous (2002f). Communicating With Creditors. Debtors Anonymous General Service Board. P-112.
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- Morenberg, Adam D. (July 2004). Governing Wayward Consumers: Self-Change and Recovery in Debtors Anonymous (MA in Sociology thesis). Tampa, Florida: University of South Florida. OCLC 56564118. Archived from the original(PDF) on 2015-12-19. Retrieved 2007-06-12.
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- Piquet-Pessôa, Marcelo; Ferreira, Gabriela M.; Melca, Isabela A.; Fontenelle, Leonardo F. (2014). "DSM-5 and the Decision Not to Include Sex, Shopping or Stealing as Addictions". Current Addiction Reports. 1 (3): 172–176. ISSN 2196-2952.
- Ronel, Natti; Libman, Galit (June 2003). "Eating Disorders and Recovery: Lessons from Overeaters Anonymous". Clinical Social Work Journal. 31 (2): 155–171. S2CID 141009143.
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- Zietlow, John T; Seidner, Alan G (2007). Cash & investment management for nonprofit organizations. John Wiley and Sons. OCLC 255472451.
External links
- Debtors Anonymous General Service Office
- Debtors Anonymous in Brazil
- Debtors Anonymous in Australia, Bali, and New Zealand
- Debtors Anonymous in Germany, Switzerland, and Austria
- Debtors Anonymous in Japan
- Debtors Anonymous in the United Kingdom
- Debt-Anon twelve-step program for relatives and friends of money and debt addicts