Good article from CNN/Money on debt (m)

iVillage Member
Registered: 03-31-2003
Good article from CNN/Money on debt (m)
Mon, 03-31-2003 - 9:01am
that I came across this morning -- the link is below. It discusses the potential danger of using home equity loans as lines of credit (if credit cards continue to be used unchecked) as well as the demographics of debt (in short, anyone at any income level can find themselves overextended).

iVillage Member
Registered: 11-18-2008
Tue, 05-03-2011 - 3:21pm
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iVillage Member
Registered: 12-31-2010
Tue, 05-03-2011 - 4:12pm
SPAM - It has been reported.
Please note that this pyramid scheme is illegal in most states and even is an issue with the US Postal service.

Chain Letters
Chain letters can be received electronically or through snail mail and are not illegal on their own. However, they take on the form of a pyramid scheme when the letter asks you to donate a certain amount of money (even just 5 cents) to the people on a list, then delete the name of the first person on the list, add your name, and forward the letter to a certain number of other people. The next people receiving the letter are then asked to do the same thing, so that you can receive your money as well. By forwarding the letter, you are asking people to give money with the promise of making money.
The fraud lies in the fact that it is impossible for the cycle to sustain itself, so people will lose their money somewhere down the line. Those who are most vulnerable are those towards the bottom of the pyramid, where it becomes impossible to recruit the number of people required to pay off the previous layer of recruiters. This kind of fraud is illegal in the Unites States and most countries throughout the world. It is estimated that 90% of people who get involved in a pyramid scheme will lose their money.