The New York City Traveler                       


Whether hot, cold, rainy, snowy or for no good reason at all, I'd enjoy cutting through the Manhattan Mall in Herald Square as I went from the Path Train to my job a couple blocks away.  Mornings were especially nice as the mall was open but none of the stores were, making it one of the few quiet places in a hectic city.  But a year or so ago, my refuge was destroyed when a giant construction project took over the mall and cut off the shortcut. 

That is, until last Thursday. Replacing the two dozen or so stores on the ground floor was a J.C. Penney.  I hate crowds.  Yet, for a second, I was filled with a sense of optimism.  Everywhere I looked were happy employees-- and for good reason.  They were likely all people with brand new jobs.  Many of my clients need first or second jobs to make ends meet, and I sometimes feel useless suggesting this since actually finding a job seems impossible for most.  So the opening of a sparkling new department store was a great sign.

My sense of optimism, however, lasted about 16 seconds.  Every employee cheerfully welcomed me to their new store.  A few of them asked if I would like to sign up for their credit card and receive a 10% discount... until it hit me: ALL of them had a brochure for the new card!

It was like a nightmare.  Even a giant table waited in the front to set up all these new accounts. 

Now, I know that there are some people like my father who take a perverse pleasure in opening a new card for the discount and then immediately paying off the bill in full and closing the account.  But for most, a 10% discount is quickly lost in 22% interest since consumers don't pay their bills because they're buying crap they don't need with money they don't have.

But Chris.  Isn't that the consumer's fault?

Partially, yes. But if one opened up a liquor store on a college campus and didn't bother to check IDs, can you just blame the college kids when things get out of hand?

Store credit cards will always be dumb to get unless you use my dad's philosphy.  And it is in poor taste to aggressively market a product designed to get people in debt at a discount department store where the people who shop there are likely to be in a financially fragile state, especially during a recession.

Bravo J.C. Penney. A few hundred employees now have a reason to hope.

As for the rest of New York, let the pillaging and plundering begin!


--Chris Dlugozima, Certified Consumer Credit Counselor

    Questions?  E-mail us at financialloft@deborahsteinberg.com!