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Delinquent: Inside America's Debt Machine
Publisher's Weekly Top 10 Fall Release in Business and Economics
A consumer credit industry insider-turned-outsider explains how banks lure Americans deep into debt, and how to break the cycle.
Delinquent takes readers on a journey from Capital One’s headquarters to street corners in Detroit, kitchen tables in Sacramento, and other places where debt affects people's everyday lives. Uncovering the true costs of consumer credit to American families in addition to the benefits, investigative journalist Elena Botella—formerly an industry insider who helped set credit policy at Capital One—reveals the underhanded and often predatory ways that banks induce American borrowers into debt they can’t pay back.
Combining Botella’s insights from the banking industry, quantitative data, and research findings as well as personal stories from interviews with indebted families around the country, Delinquent provides a relatable and humane entry into understanding debt. Botella exposes the ways that bank marketing, product design, and customer management strategies exploit our common weaknesses and fantasies in how we think about money, and she also demonstrates why competition between banks has failed to make life better for Americans in debt. Delinquent asks: How can we make credit available to those who need it, responsibly and without causing harm? Looking to the future, Botella presents a thorough and incisive plan for reckoning with and reforming the industry.
A consumer credit industry insider-turned-outsider explains how banks lure Americans deep into debt, and how to break the cycle.
Delinquent takes readers on a journey from Capital One’s headquarters to street corners in Detroit, kitchen tables in Sacramento, and other places where debt affects people's everyday lives. Uncovering the true costs of consumer credit to American families in addition to the benefits, investigative journalist Elena Botella—formerly an industry insider who helped set credit policy at Capital One—reveals the underhanded and often predatory ways that banks induce American borrowers into debt they can’t pay back.
Combining Botella’s insights from the banking industry, quantitative data, and research findings as well as personal stories from interviews with indebted families around the country, Delinquent provides a relatable and humane entry into understanding debt. Botella exposes the ways that bank marketing, product design, and customer management strategies exploit our common weaknesses and fantasies in how we think about money, and she also demonstrates why competition between banks has failed to make life better for Americans in debt. Delinquent asks: How can we make credit available to those who need it, responsibly and without causing harm? Looking to the future, Botella presents a thorough and incisive plan for reckoning with and reforming the industry.
317 pages, Hardcover
Published October 11, 2022
10 people are currently reading
170 people want to read
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Displaying 1 - 9 of 9 reviews
August 7, 2024
unrelated to the book but this was my first time reading nonfiction on a kindle and i was so thrown off because I thought I was halfway through the book but I actually finished it due to appendices and charts ???? WEIRD
I think this book is a great introduction to credit cards, debt, consumer finance, and more generally, like what is credit and what it means to handle it. For the most part, I really appreciate it the way she included her personal experience at Capital One and sort of explained the rationale behind what people had a credit card issuer are thinking when they do certain things. The one thing I found unbelievable was that she would describe actions done at the bank that were clearly aimed at creating more profit and not to help people, which isn’t necessarily bad because it’s a business goal to make a profit, but people would believe it was the right thing?? Like, raising fees is good because it “gets people to pay down debt faster?” Like how could people believe that???
I also really enjoyed the history part as a former ~~history minor~~~ as well as the added context it provides to the current system
Also can’t forget ALLLLL the CFPB references I felt famousss 🤗 hope we do you proud Elena
more thoughts to come later perhaps ?
I think this book is a great introduction to credit cards, debt, consumer finance, and more generally, like what is credit and what it means to handle it. For the most part, I really appreciate it the way she included her personal experience at Capital One and sort of explained the rationale behind what people had a credit card issuer are thinking when they do certain things. The one thing I found unbelievable was that she would describe actions done at the bank that were clearly aimed at creating more profit and not to help people, which isn’t necessarily bad because it’s a business goal to make a profit, but people would believe it was the right thing?? Like, raising fees is good because it “gets people to pay down debt faster?” Like how could people believe that???
I also really enjoyed the history part as a former ~~history minor~~~ as well as the added context it provides to the current system
Also can’t forget ALLLLL the CFPB references I felt famousss 🤗 hope we do you proud Elena
more thoughts to come later perhaps ?
August 24, 2023
A few weeks ago, American household debt reached 1 trillion. A staggering number. This debt, creates a level of fragility on the entire global economy that could shatter due to an unforeseen event. Debt leaves very little room for error, when you have debt you become highly attuned to small perturbations in the economy. It leaves you less mobile, more risk averse and most important of all.. It forces you to be in positions which ethically compromise you. Not from a criminal point of view but from a moral point of view. Where you take jobs regardless of the ethics involved because you simply need the money to provide for your love ones. Debt controls you, it puts you into an invisible cage and creates the foundation for ignoring your preferred career choice, putting up with shitty co works or a shitty boss. I mean, am I the only one who has ever been in a zoom call with their boss thinking 'I wonder what would happen if I told this dude to suck my dick right now'. You can lie to me but I know many of you have had similar feelings.
For many of you thinking, why would I read a book on debt? I can tell you, I have the opposite view. I have always been fascinated with debt. How people get into debt, what choices did they make was it a tragic emergency? Was it an overoptimistic outlook on the future? Was it recklessness? Were you flexing on your neighbor? What are the events that transpired that lead you to this moment? I have extreme aversion to any debt, I am very lucky. I view debt as a mix of satan and another mix of satan. My father came to this country started a business made it into the upper echelons of wealth and then spectacularly imploded from debt, lack of understanding of finances, lack of understanding of cashflow. It has scared me as a child because I have seen just how stressed my father was, he was leveraged multiple times over, living paycheck to paycheck despite being in the upper middle class. His experiences have always shaped me as a child. I am overly paranoid on any document involving any type of credit or bank. I am fortunate enough to save over 80% of my salary and live a modest frugal life based on observing my father. So if you're wondering what kind of psychopath is fascinated by debt now you know why.
Thats part of why I picked this book up. The other part being the aftermath of the pandemic, the surge in remote work, advances in AI, supply chain disruptions, sanctions on Russia causing the cost of petrochemicals to soar... I have been left with an extreme amount of curiosity about this time period and perhaps I am naively picking up any recent book on the current state of the global world despite realizing it will take much longer to explain what happened.
Okay so enough rambling, apologies to the reader if you made it this far. Let me ask you a question, does debt go up in a time of depression/recession? Or does it go down? This question seems like a trick question or a stupid one. The answer is that debt actually increases when the times are good and decreases when the economy spirals. This is very odd and it reminds us that we can never make assumptions without a deeper understanding. So if this is the case, why are Americans 1 trillion in debt? I don't have the answer to this question but the book states some interesting facts about how we got to where we are.
The author is a former mid level manager or executive at capital one. She seems to be struggling with how to deal with her time at Capital one. A financial services type company for those who have never heard of Capital one. She describes her co workers as kind and generous and goes into Capital One's mantra which revolves around providing credit to customers in need. Theres like a few mantras, mainly it seems like their goal is to help Americans be financially solvent, balance their check books etc. I am not sure exactly what it is, it sounds like that corporate BS that we're all accustomed too. She states that people actually believe the companies goals on the surface level but when you dive deeper a different picture appears.
This is the most important lesson from the book, credit card companies through advanced machine learning algorithms know statistically when someone is going to be able to pay off a loan, they know how profitable it will be to lend this individual money on aggregate of a pool of individuals. They also know something even more valuable. Have you ever got an email or something in the mail stating "Your credit card limit increased!" even when you didn't ask for a credit card limit increase? This is the Orwellian aspect, banks know through their models that not only will this person use the credit card limit increase that it will also bankrupt them or saddle them with debt for years. Effectively shattering this persons life, this is under the hood. Over the hood, they tell themselves, they meaning the banks staff that we're helping people by giving them access to credit. Even though their own models show that this extra credit increase will effectively ruin their lives. This reminds me of the Upton Sinclair quote, I believe it goes something like this "It is difficult to get a man to understand something if his salary depends on him not believing it". You can insert man or women now to modernize this quote.
Basically, banks know credit limits are very profitable because they do 2 things, borrowers (myself included unless I physically write out the equation) are not mentally equipped to understand how interest works not to mention a revolving loan that has an interest rate that can fluctuate based on the balance. Versus an installment loan with a fixed rate that is not as opaque and decipherable to the borrower. The problem is that at times borrowers confuse installment loans and revolving loans. Effectively unable to understand how they differ from one another and this has gigantic consequence's for someones for peoples personal accounts. These loans can have hidden fees that are very hard to understand. Not to mention, people seemingly choose credit cards based on the rewards offered not the interest rates which can be catastrophic.
The rewards that credit cards give out are paid by everyone but mostly the poor because they will most likely not cash in on these rewards and the costs are imputed into all sorts of goods we purchase to finance the rewards system. This is something that I did not realize either. Banks have been increasing rates on borrowers but also have not changed their services or improved the product itself. If we look at the price of goods like phones, tv's, dish washers. They have decreased in price overtime but not credit cards. They have only risen with no real change to the core product which is odd. It signals a monopoly where the markets can raise prices in tandem without fear or losing market share. Even fintech companies are there that look to challenge bigger banks. They lack the scale and the ability to probably be bailed out if there loans do go bust.
I want to go back to the point of banks raising credit limits without asking the consumer, its like someone putting ice cream in your freezer knowingly you'll eat it all in one sitting without your permission. Think about how farmers inject all these antibiotics into chickens, trying to get them to the point where they can bench 225 but just right short of exploding. Thats what banks are doing to consumers knowing that this credit limit will screw them over. They will make a hefty penny on the interest rates while this person struggles and then defaults.
Life happens, emergencies take place, family members get sick, household appliance's break. You can't control these things. You maybe forced to pay with credit but later down the road. It will haunt you. I get it though, emergencies happen. You want the best for your loved ones, who doesn't? Just be careful, avoid it all costs if you can. Overall, this was an enjoyable read for me. Theres much more in this book regarding unethical testing being done in banks where some people are offered better deals than other people for a test etc. I didn't get into everything but I fee like I left you with enough(Hopefully). I would recommend to anyone who feels a bit financially aloof.
For many of you thinking, why would I read a book on debt? I can tell you, I have the opposite view. I have always been fascinated with debt. How people get into debt, what choices did they make was it a tragic emergency? Was it an overoptimistic outlook on the future? Was it recklessness? Were you flexing on your neighbor? What are the events that transpired that lead you to this moment? I have extreme aversion to any debt, I am very lucky. I view debt as a mix of satan and another mix of satan. My father came to this country started a business made it into the upper echelons of wealth and then spectacularly imploded from debt, lack of understanding of finances, lack of understanding of cashflow. It has scared me as a child because I have seen just how stressed my father was, he was leveraged multiple times over, living paycheck to paycheck despite being in the upper middle class. His experiences have always shaped me as a child. I am overly paranoid on any document involving any type of credit or bank. I am fortunate enough to save over 80% of my salary and live a modest frugal life based on observing my father. So if you're wondering what kind of psychopath is fascinated by debt now you know why.
Thats part of why I picked this book up. The other part being the aftermath of the pandemic, the surge in remote work, advances in AI, supply chain disruptions, sanctions on Russia causing the cost of petrochemicals to soar... I have been left with an extreme amount of curiosity about this time period and perhaps I am naively picking up any recent book on the current state of the global world despite realizing it will take much longer to explain what happened.
Okay so enough rambling, apologies to the reader if you made it this far. Let me ask you a question, does debt go up in a time of depression/recession? Or does it go down? This question seems like a trick question or a stupid one. The answer is that debt actually increases when the times are good and decreases when the economy spirals. This is very odd and it reminds us that we can never make assumptions without a deeper understanding. So if this is the case, why are Americans 1 trillion in debt? I don't have the answer to this question but the book states some interesting facts about how we got to where we are.
The author is a former mid level manager or executive at capital one. She seems to be struggling with how to deal with her time at Capital one. A financial services type company for those who have never heard of Capital one. She describes her co workers as kind and generous and goes into Capital One's mantra which revolves around providing credit to customers in need. Theres like a few mantras, mainly it seems like their goal is to help Americans be financially solvent, balance their check books etc. I am not sure exactly what it is, it sounds like that corporate BS that we're all accustomed too. She states that people actually believe the companies goals on the surface level but when you dive deeper a different picture appears.
This is the most important lesson from the book, credit card companies through advanced machine learning algorithms know statistically when someone is going to be able to pay off a loan, they know how profitable it will be to lend this individual money on aggregate of a pool of individuals. They also know something even more valuable. Have you ever got an email or something in the mail stating "Your credit card limit increased!" even when you didn't ask for a credit card limit increase? This is the Orwellian aspect, banks know through their models that not only will this person use the credit card limit increase that it will also bankrupt them or saddle them with debt for years. Effectively shattering this persons life, this is under the hood. Over the hood, they tell themselves, they meaning the banks staff that we're helping people by giving them access to credit. Even though their own models show that this extra credit increase will effectively ruin their lives. This reminds me of the Upton Sinclair quote, I believe it goes something like this "It is difficult to get a man to understand something if his salary depends on him not believing it". You can insert man or women now to modernize this quote.
Basically, banks know credit limits are very profitable because they do 2 things, borrowers (myself included unless I physically write out the equation) are not mentally equipped to understand how interest works not to mention a revolving loan that has an interest rate that can fluctuate based on the balance. Versus an installment loan with a fixed rate that is not as opaque and decipherable to the borrower. The problem is that at times borrowers confuse installment loans and revolving loans. Effectively unable to understand how they differ from one another and this has gigantic consequence's for someones for peoples personal accounts. These loans can have hidden fees that are very hard to understand. Not to mention, people seemingly choose credit cards based on the rewards offered not the interest rates which can be catastrophic.
The rewards that credit cards give out are paid by everyone but mostly the poor because they will most likely not cash in on these rewards and the costs are imputed into all sorts of goods we purchase to finance the rewards system. This is something that I did not realize either. Banks have been increasing rates on borrowers but also have not changed their services or improved the product itself. If we look at the price of goods like phones, tv's, dish washers. They have decreased in price overtime but not credit cards. They have only risen with no real change to the core product which is odd. It signals a monopoly where the markets can raise prices in tandem without fear or losing market share. Even fintech companies are there that look to challenge bigger banks. They lack the scale and the ability to probably be bailed out if there loans do go bust.
I want to go back to the point of banks raising credit limits without asking the consumer, its like someone putting ice cream in your freezer knowingly you'll eat it all in one sitting without your permission. Think about how farmers inject all these antibiotics into chickens, trying to get them to the point where they can bench 225 but just right short of exploding. Thats what banks are doing to consumers knowing that this credit limit will screw them over. They will make a hefty penny on the interest rates while this person struggles and then defaults.
Life happens, emergencies take place, family members get sick, household appliance's break. You can't control these things. You maybe forced to pay with credit but later down the road. It will haunt you. I get it though, emergencies happen. You want the best for your loved ones, who doesn't? Just be careful, avoid it all costs if you can. Overall, this was an enjoyable read for me. Theres much more in this book regarding unethical testing being done in banks where some people are offered better deals than other people for a test etc. I didn't get into everything but I fee like I left you with enough(Hopefully). I would recommend to anyone who feels a bit financially aloof.
December 7, 2023
She lost me at the Preface as she revealed her Marxist presuppositions. Throughout the book she employs an oppressor/oppressed perspective, shifting responsibility for the problem to the banks. While I agree with her view that banks are trying to drive profits and that they often do so at the expense of their customers, she is reluctant to attribute anymore than a pittance of responsibility to the card user. Further, the writing is rather dense and, at times, overly technical. I've been in banking for 30 years and I have an MBA, and I still frequently had trouble following her. Overall, quite disappointing.
January 16, 2026
This book had some interesting facts and information sprinkled throughout, but the main conclusions were abhorrently unfair. The writer (who is a Marxist) lays all the blame for crushing personal debt on banks and the financial sector as a whole. Poor people are to stupid to understand how credit cards work and therefore banks are the only culprit. All the interviews provided were of people who fit the writer's narrative and "proved" her points. I considered giving 2 stars, but given the book also has at least 6 grammar and spelling errors this book is getting tucked away and won't ever see the light of day.
July 5, 2025
Botella clarifies that the burden of proof is on the banks for engaging in what she calls a "predatory" system. At the same time, consumers bear little to no responsibility for the debt hole they dig themselves into.
While her description of the algorithms banks use to model profitability for consumers is illuminating, and the information disconnect between banks and their customers is undeniable, there are far too many instances of her condescension to massage the egos of her readers in debt.
In the quest for sympathy and inclusive language, Botella pathologizes those in difficult debt situations, claiming that the average American consumer has enough sense to realize the unfair deal they're being dealt and that they are being tricked into an exploitative arrangement. Both cannot be unequivocally true. You cannot have your cake and eat it too. In a phrase, she completely absolves the individual of any responsibility for their situation.
If this is a book aimed at helping people gain an understanding of the US debt industry and preventing them from getting ripped off, it makes no sense to put so much stock in what is outside of consumer control.
That being said, Botella does an excellent job of detailing the history of credit cards and how the debt machine turns.
Generally, huge profit margins for lending (expanding lending to subprime populations with higher interest rates and the portion size effect on how credit limits are used are just two examples) led banks to obscure and complicate pricing, bake in fees, and move interest rates steadily higher in the face of price-insensitive consumers.
For me, the book hits home a central lesson: do not spend more than you make, and, if you do, make sure you know the cost and role of borrowing.
While her description of the algorithms banks use to model profitability for consumers is illuminating, and the information disconnect between banks and their customers is undeniable, there are far too many instances of her condescension to massage the egos of her readers in debt.
In the quest for sympathy and inclusive language, Botella pathologizes those in difficult debt situations, claiming that the average American consumer has enough sense to realize the unfair deal they're being dealt and that they are being tricked into an exploitative arrangement. Both cannot be unequivocally true. You cannot have your cake and eat it too. In a phrase, she completely absolves the individual of any responsibility for their situation.
If this is a book aimed at helping people gain an understanding of the US debt industry and preventing them from getting ripped off, it makes no sense to put so much stock in what is outside of consumer control.
That being said, Botella does an excellent job of detailing the history of credit cards and how the debt machine turns.
Generally, huge profit margins for lending (expanding lending to subprime populations with higher interest rates and the portion size effect on how credit limits are used are just two examples) led banks to obscure and complicate pricing, bake in fees, and move interest rates steadily higher in the face of price-insensitive consumers.
For me, the book hits home a central lesson: do not spend more than you make, and, if you do, make sure you know the cost and role of borrowing.
December 30, 2025
Felt like I had to muscle through this book to see another perspective. The author takes a “big government” approach to lending/banking which I disagree with. Many of the takes are clearly from someone with credit risk experience from an established financial institution. While I agree that big banks are generally looking for the highest profit possible that customers are willing to accept, the author took a myopic view to credit underwriting that doesn’t not consider changing macroeconomic factors, other lines of the business. and how big of a cost fraud actual is. Debt as a concept is not morally good or bad. It is a very snobby take that someone believes they know how another “should” manage their finances. There are a lot of factors that contribute to the ever increasing debt load Americans take on, but limiting access to credit/debt is not going to solve the root of the problem. Housing is too expensive, wages have not kept up, and the richest in America are not paying a fair tax rate. Addressing these would do more for Americans than demonizing big banks or restricting access to debt.
September 1, 2023
The hypotheses of the book were very interesting and powerful. The author has a lot of experience in the credit field and speaks with authority. However, it was immensely frustrating to see so many small errors sprinkled throughout the book. It seems like it hasn't been through a basic editing process, making me question other "basics". It was also very dense, feeling a bit like an academic paper at times. I think the book's main points would have been more powerfully delivered with some simplicity and organization.
Definitely liked it and would recommend to others, but disappointing that it wasn't delivered with more polish
Definitely liked it and would recommend to others, but disappointing that it wasn't delivered with more polish
May 2, 2023
If you have credit card debt, you must read this.
November 3, 2024
Long book but full of information and anecdotes that really scare you into getting into debt and push you to increase your financial literacy and that of those around you.
Displaying 1 - 9 of 9 reviews