Home > Credit 101 > Are You A Credit Waster, Whiner, or Winner?

Comments 0 Comments

The following is an excerpt from Rich Dad Advisor Garrett Sutton’s new book, The ABCs of Getting Out of Debt. Garrett Sutton is a small business attorney who has worked with clients from all over the world. Credit.com is proud to have been featured in the new book, and of the fact that our Director of Consumer Education, Gerri Detweiler, contributed to the book as well.

To win with credit, it is important to understand the psychology of debt. What are the motivations that lead to debt? Why are some people consistently unable to manage debt? What is the relationship between self-esteem and debt? With nearly trillions in unpaid consumer debt, a million households filing for bankruptcy each year (more or less, depending on the year), and a very low savings rate, why are we racking up debt like there is no tomorrow?

In my experience there are five types of borrower profiles:

  • Wishers
  • Wasters
  • Wanters
  • Whiners
  • Winners

The first three profiles tend to overlap, as we’ll see. The last profile, the winners, have either survived and moved past the difficulties of the first four categories, or were credit winners to begin with. This book will teach you how to be a credit winner.


Wishers are credit optimists. They have the sunny perception that they deserve the good things; that they are meant to keep up with the Joneses, and can easily afford it all. In their happy dream world of credit optimism they focus on the monthly payments, not on the overall debt. They see a $20 payment here and a $75 payment there as doable, never focusing on the thousands of dollars of overall debt, at crushing interest rates, they have incurred. They are convinced that they can easily pay the bills as they come due.

Such false perceptions of what can be managed are extremely problematic during the Christmas spending season, especially with the sense that the bills are due next year. Wishers, as optimists, see a brighter next year for themselves, a better job, with more income, a future whereby all money issues will be resolved. Unfortunately, not all wishes come true.


Wasters spend money as an escape. With low self-esteem issues, they use money to purchase things in order to feel better, relieve stress and escape their problems. In a society where massive and pervasive advertising can easily manipulate behavior, there is nothing like the feel and sense of something new (or so the advertisers would have you believe.) A new car or truck or television or vacation can end the emptiness inside — for a time. When that empty feeling returns there are still bills to pay.

Wasters, however, will continue spending. With a credit card industry that encourages, indeed programs, people to buy now (for wasters — feel now) and pay later, wasters will sign up for more credit. They will find themselves locked into a life of revolving debt. With low self-esteem they will more often declare bankruptcy and they will more often go back to their unsuccessful money management techniques of short-term retail relief and long-term debt woes.


One of the more interesting studies in annuals of psychology is the Stanford Marshmallow Study. Begun in the 1960s, it was conducted by Walter Mischel, a Stanford University psychology researcher, and studied the importance of self-discipline on future success. A group of hungry 4-year olds was offered a choice. They could have one marshmallow now. But if they waited fifteen or twenty minutes while the researcher ran an errand they could have two marshmallows. A third of the children immediately ate the single marshmallow.

While some waited a little longer, another third of the children waited the full 15 to 20 minutes for the adult to return. Later, when the children graduated from high school, a follow up study provided interesting information. The quick and single marshmallow eaters were less self-confident and couldn’t put off immediate gratification to reach long-term goals. Their impulses were life long, resulting in bad marriages, low job satisfaction and lower incomes. The resisters, who delayed immediate gratification to receive two marshmallows, were more productive and positive in life. By being able to delay gratification in pursuit of their goals they had higher incomes, more lasting marriages and better health.

The problem in our society is that immediate gratification is actively encouraged. “Have it your way.” Eye glasses — or whatever — in under an hour. “Buy now, pay later.” These are just some of the constant messages we receive. Is it any wonder that those with lower self-discipline are lured into the indulgences of immediate gratification?

The wanters want it now and the credit industry caters to that desire. The issue of paying for all of it later inevitably becomes a problem.


Whiners will start to read this book and will give up because they decide it’s too hard, or it won’t work, or the deck is stacked against them. They may read lots and lots of information about credit and personal finance but instead of taking action, they continue to spend their time focused on the negative. When a solution or answer is presented to them, they will go into detail about what’s wrong with it.

Whiners may rail against FICO, creditors, the banks — or all three. While they may have legitimate concerns about the fairness of the credit system, they spend all their time trying to fight the system, rather than working toward a solution.


Believe it or not, for all the criticism of the credit industry we have just offered, there is room for huge winnings to be realized by using credit to your advantage.

The winners know this, or have learned it through their own education. Perhaps their parents imparted the knowledge, or they read Rich Dad/Poor Dad, The Cash Flow Quadrant and similar books. However the wisdom was arrived at, the formula can be very rewarding.

What type of borrower are you?

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other sponsored content on Credit.com are Partners with Credit.com. Credit.com receives compensation if our users apply for and ultimately sign up for any financial products or cards offered.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team