The Hidden Cost of Family Debt
In her new book, Kristin Collier reveals the harrowing story of how she ended up with over $200,000 in debt that she was completely unaware of. The source of this debt was her mother, who, struggling with a gambling addiction, had taken out loans and credit cards in Collier’s name without her knowledge.
“This debt fractured our relationship and made it hard for me to trust her,” Collier shared. “At the debt’s peak, I owed $2,000 a month.”
When Collier applied for a credit card at age 22, she was surprised to learn that her application was denied. That’s when she discovered that there was over $200,000 in debt under her name — including several student loans and credit card balances. What followed was a long and painful journey to uncover the truth behind the debt.
Soon, she learned something even more troubling: Her mother had taken out nearly all of the loans without her consent. Legal documents reviewed by Collier revealed her mother admitted to borrowing the money using her daughter’s name.
In her book, “What Debt Demands: Family, Betrayal, and Precarity in a Broken System,” Collier tells the story of her decade-long attempt to remove those fraudulent debts from her record, how the experience affected her relationship with her mother, and the role debt plays in so many Americans’ lives.
A Personal Story of Betrayal and Healing
Collier spoke about the emotional toll of learning that her mother had taken out such massive debt in her name. She felt that her mother had chosen the casinos over her, but over time, she came to understand the broader implications of addiction and the predatory nature of the student loan industry.
“At the debt’s peak, I owed $2,000 a month. I had to work multiple jobs to make these payments, and when I thought of my future, all I could see was more debt.”
She also reflected on the harm done to her mother, noting that the private student loan industry should have been more responsible in verifying the legitimacy of the applications. “Had they acted responsibly, they would have noticed something was off with my credit history,” she said.
The Link Between Gambling and Debt
Collier pointed out the connection between gambling and debt, highlighting how the gambling industry is incredibly predatory. “Most of a casino’s revenue is generated from slot machines, and much of the slot machine revenue is generated from a small subset of gamblers,” she explained. “Casinos design an entire ecosystem around funneling people toward these machines and keeping them on these machines past their pain points.”
She believes that the money borrowed by her mother likely went toward the casinos to try to win back what had already been lost. “It’s possible that some of it was used to keep the family afloat — helping to pay for the mortgage, for example — because the rest of [the family’s] money had already been gambled away.”
Understanding Addiction and Its Consequences
Collier shared that she didn’t know about her mother’s gambling addiction until later. “My mother’s addiction seemed to have started around the time I began college, which means that I was mostly away from home during the years it was the worst.” While she sensed that the family had less money, she didn’t understand the root cause of the financial strain.
The Struggle to Remove the Debt
Removing the debt proved to be an enormous challenge. “Because I was unwilling to use the criminal legal system, it was a huge challenge to get the loan companies to work with me, or even, at times, to talk to me.”
After 10 years of refuting the debt, Collier used the bankruptcy process to force a conversation. “My mother, the lenders, and I signed paperwork that removed the debt from my name. In some ways, I was lucky, because bankruptcy is not a pathway to relief for most student borrowers.”
The Health Impact of Debt
The stress of living with unpayable debt took a toll on Collier’s health. “In my early 20s, living in New York City, and being harassed by debt collectors, I was sick all the time. I had ulcers and UTIs and stomach infections. I think the stress of living with unpayable debt was showing up in all these illnesses.”
Debt as a Family Issue
Collier emphasized how debt often becomes a family problem. “A family with fewer resources will very likely translate to more debt for their student, and maybe for the parents, too, if they take out a Parent Plus Loan.”
She highlighted the lack of universal free higher education as a key factor in this cycle. “Debt is first determined by family and then often shared by the family. This is the case because we do not have universal free higher education, the only funding model that would make education a state ‘problem’ rather than a family one.”
Psychological Effects of Debt
Collier also spoke about the psychological impact of debt, noting that people are often blamed for their financial struggles. “We are told that debt comes from financial recklessness and immorality. So, of course, when faced with unpayable debt burdens, people feel bad about it, as if they are to blame.”
She described the constant anxiety of juggling finances to make monthly payments, worrying about housing or health crises, and living with this burden week after week, year after year.
Protecting the Next Generation
In her book, Collier writes about her daughter and her efforts to protect her from the same fate. “I’m going to keep pushing for free public higher education, which is the surest way to protect her and to protect everyone from going into debt.”
While she and her husband work in nonprofits and as educators, they recognize that saving enough for college is not an option for most Americans. “Saving up enough money is not an option for us or for most Americans, unless something about the system significantly shifts. It’s too expensive.”
