Money Disorders: Are They For Real?

Many Americans appear to take pride in their lack of money smarts. The other day a commercial for a debt-counseling firm felt it necessary to inform listeners that heavy borrowing, aka "excessive use of credit," was a leading cause of serious indebtedness. News to you?

But what if Americans aren't merely acting dumb about money? What if they're neurotic?

How to Treat a Money Disorder in the NY Times makes money manias seem endemic:

Among the problem financial behaviors identified by psychologists in recent years are: overspending, underspending (a k a Depression mentality), serial borrowing, financial infidelity (“cheating” on a spouse by spending and lying about it), workaholism, financial incest (lording money over relatives to control them), financial enabling (throwing large sums at, say, adult children who then are not motivated to support themselves), hoarding, and plenty of guilt and shame around poverty and wealth.

If country music star Wynonna Judd had not sought therapy, the Times notes, she might still own five Harleys instead of two.

Is the notion of widespread mental money disorders, such as overspending or hoarding, overblown? Before you decide, consider this comment on the national credit crisis in today's NY Times:

"Right now, players throughout the system are refusing to lend and hoarding cash…."

Should somebody call Doctor Phil?