The Debt Collective: Cancel Your Debt Scott Free

The Debt Collective is an organization that is dedicated to gaining members who have collected debt and now refuse to pay. The end goal is to clear themselves of their debt. Not by paying it off but either through the dismantling of the banking system or forcing debt forgiveness with the threat of dismantling.

I’m going to go over the core values of this heinous organization and explain the flaws in its incentive structure. As well as go over how far removed from reality the leaders of the organization are.

Core Values

Power in Numbers

“Alone our debts are a burden, but together they give us power over an exploitive system.” Debts are not a burden unless you make them a burden. Debt is good, it allows for growth and progression. It allows you to go to school, buy a car, buy a house, and start a business. Without debt, we would be in a much worse and stagnant situation. The way your debt is a burden is if you used the borrowed money for something that holds no value. For example, a gender studies degree or an unreliable car. The choice on what to take them out for is on you, therefore if the loan is a burden… you guessed it, that’s also on you.

Tips on making your debts less of a burden: don’t buy things you can’t afford, build your credit score, and invest in yourself.

Handing out loans is not an exploitative system. They allow people with little capital an opportunity to do great things. You may think it is exploitative, but in reality, you just wasted your opportunity. You don’t have to take out a loan, it’s your choice to do so.

The Market Won’t Save Us

What problem did “the markets” create? The bank has a federal funds rate (FFR), which is the rate used to borrow money from other banks, this number is determined by the FED. The prime rate is the rate at which customers borrow from the banks, it is typically 3% higher than the FFR. The FED changes the FFR so the economy doesn’t overheat or cool off too quickly. This is a very basic explanation of the banking system. But the point is “the market” didn’t create a problem, it created a solution to keep the economy moving.

Capitalist principles of competition, profit, and efficiency are literally the reason why billions of people have food to eat, clothes on their bodies, and a roof over their heads. In 1820, 94% of the world’s population was living in extreme poverty. As of 2015, 9.6% are living in extreme poverty. This is largely due to capitalism. Not only is the percent decrease in poverty really impressive but the world population went from about 1 Billion to a little over 7 Billion. A 700% increase.

But yes, like the Debt Collective is saying, capitalism is the problem…. sure.

Also, they talk about capitalist principles yet forget to mention the biggest principle, private ownership of capital, you know the thing that actually makes it capitalism.

Be anti-racist – dismantle racist capitalism

This core value was my first clue that this organization isn’t really focused on forgiving debt but instead had other political ambitions.

Yes, there used to be racist laws and regulations. That’s history, every race, religion, and creed has at one point in history been the victim of slavery or racism. The question is that happening right now in the United States? No.

The typical claim is that black applicants are denied loans more often than white applicants. Which is true. The Debt Collective uses this single variate analysis to determine that the banking system is racist. But using a multivariate analysis, if your account for credit score, loan amount, and income disparities the difference in loan denial are negligible.

Think about the incentives of the bank. They want money. They get money by lending money out to responsible lenders. Therefore they will lend money out to as many responsible loaners as they can, regardless of skin color.

Also using their logic, if loans are exploitive, and whites have their loans accepted more often wouldn’t that mean the system is racist toward white people?

Practice Solidarity

What the fuck is this…. I thought this organization was about canceling debt? There isn’t even a call to action here. This is what I read: “we support these vague terms and generalized groups to sound virtuous.”

Virtue Signaling at its finest. Might be one of the worst things to come out of the 21st Century.

Center the Most Impacted

Again, what does being a minority have to do with having debt? The greatest minority is the individual. A bank makes its decision on handing out loans based on the ability to pay back its loan. Not based on skin color, sexuality, or gender. If the claim is these minority groups are hurt most by debt, your real claim is that minority groups are worse at paying back their loans. Your core value should be teaching proper personal finance, not dismantling the “patriarchy.”

Build Beyond Borders

They are correct, the US economy operates worldwide. But there is no “unjust debt” only poor financial decisions. To fix the problem once again personal financial literacy, at a worldwide scale would be great!

Be Radical, Not Ridgid

This whole organization is self-righteous dogma. The reason for this becomes quite apparent very soon. Also, I know I’m a broken record but “want to get to the root of society’s problems?”: PERSONAL FINANCIAL LITERACY

We’re Human

Yes, correct again. We owe our debts to each other. The bank sells the service of facilitating these loans. Debt is good, it allows people who have the capital to invest it and those who need capital an opportunity to access it.

A core value of the debt collector is to affirm one another’s identities. They are so far off the beaten path I’m not entirely sure what to say about this. One thing that matters when it comes to debt is your ability to pay it off. What you identify as is irrelevant.

Dreams and Scheme

This is it, they want to abolish debt. This would abolish economic growth. This would abolish home ownership. This would abolish car ownership. This would abolish credit cards, and thus credit card benefits. This would abolish class mobility. This would abolish the freedom of the west. The Debt Collective is advocating for the destruction of the American Dream and prosperity.

Democratize Everything

A True Democracy is the tyranny of the majority. 51% get to tell the 49% what to do, it’s not the “end all be all” great idea they might think it is. They are so close, we don’t need political education, that is too complex and irrational (and we are rational beings). Instead, we need financial education. I agree that we do need leadership development and increase our value through learning skills.

Read more about how to increase your value

Play to Win

An economy based on the principle of solidarity makes absolutely no sense. I’d genuinely love to see the plan of action on how an economy is based on the principle of solidarity.

The Debt Collect takes “strategic analysis… before committing ourselves to specific tactics and campaigns.” Interesting let’s see how this totally not biased organization determines what campaigns they commit to.

Become a Member Today

After reading what their core values are it is clear that is an organization that I personally want to join. Let’s take a look at what is needed to join.

A monthly payment plan to The Debt Collective. $5, $10, $20, $50, or Other are options to pay each month to be a member. I find it quite ironic that the organization that promotes not paying your monthly debt payments is then asking you to pay THEM monthly dues. Who is exploitive now?

To be fair, there is an option for a “zero-dollar” membership. This makes sense since if the people who join this organization can’t afford to pay their debt, why would they have the money to pay this organization?

Our Team

So looking at their Team, they have 24 employees/management listed on their website. So how are these people paid, more than likely through membership dues right? Let’s take a look at their financials.

Financials

Only 4% of their budget comes from dues. Their goal is to be fully funded by membership dues. To say they are far from their goal is an understatement. “It’s also hard to be an anti-capitalist organization asking foundations and funders for money!” Yeah – no shit, you are asking for money with nothing in return. Do you know what would be better? Asking for money than paying back the borrowed over time with interest, so you get the money you want and the investor gets their money back with capital gains. Oh wait…. that’s called debt. They are so close to finding the big flaw in their organization.

So where does the rest of their budget come from? To pay for their 24 employees, I’m curious about what they actually do on a day-to-day basis. They want to stay politically independent but they are funded by a non-profit organization, the Sustainable Markets Foundation. Hint: they are not politically independent.

Sustainable Markets Foundation

According to Influence Watch, the “Sustainable Markets Foundation is an environmentalist organization pushing for stricter environmental laws and bans on natural gas production.”

This is a non-profit organization that is funded by large center-left environmentalist groups. One of the major contributors is the Rockefeller Family Fund. The Rockefeller family is originally known for founding Standard Oil, with their largest descendant Exxon/Mobile.

More recently they are known for divesting all their fund from oil and fossil fuels due to their climate activist and left-leaning views. It’s good to see people put their money where their mouth is when talking politics. No one likes a hypocrite. But what does this have to do with debt cancellation?

Marxism?

I find it hard to believe that the Rockefellers knowingly understand the complexity of climate change yet is completely baffled by the economic simplicity of debt. Therefore, I come to the conclusion that this is an off-hand Marxist tactic to achieve their real goal: climate change.

What I mean is that people who are struggling with debt are more likely to be struggling to pay other bills, have trouble putting food on the table, and gas in the car, and are living paycheck to paycheck. Do you think they care about climate change? Hell no.

What if instead, you convince them to join a group that focuses on what they care about. Let’s say debt cancellation. That will definitely catch their attention. They join the group and all they have to do is promote “X values”, the core values I went over, but more importantly vote for Y candidate because they will cancel your debt. Candidate Y actually runs on the platform of climate change, not debt cancellation. That is how you successfully convince a group of non-interested people to passionately vote for your political movement.

The Rockefellers created a passionate voting block (one of the most powerful items in politics), to vote for the candidate they wanted. They did this through the simple funding of an organization that has nothing to do with their political goals, it’s the old switcharoo.

It is quite impressive, to be honest. The Debt Collective is not an organization to cancel your debt but instead a climate change activism organization. Isn’t that something?