The Diderot Effect: Spending Wisely in the Face of a Consumer Culture With Ameritech Financial

Press Release ( - ROHNERT PARK, Calif. - Jun 29, 2018 - People wore robes in public in 1769. That was the year Napoleon Bonaparte was born, and the year French philosopher Denis Diderot made the mistake of buying a nice, new, fancy robe. Realizing that his new robe looked out of place beside his other humble belongings, he went on a shopping spree that he could not afford in order to fill his life with an improved lot of material goods on par with the opulent robe. His desire to consume became insatiable after his initial purchase. This situation, now known as the Diderot effect, can be especially detrimental to those who have debt, such as student loans. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, understands that the Diderot effect can propel a person into bad spending habits.

“Spending habits matter,” began Tom Knickerbocker, Executive Vice President of Ameritech Financial, “and they’re just that — habits. Habits can be broken or nurtured, and the way people spend is going to have lasting effects on their finances, both short and long-term.”

The consumer culture pushes people to buy, and buying power is what gives those people agency in the marketplace. A vicious cycle, consumers are constantly bombarded with advertising attempting to convince them to buy the next new product while they also influence the market with their purchasing decisions. The Diderot effect can tilt this cycle towards purchases that a person’s former self would not have needed. One new purchase can set in motion a series of events that can potentially lead to overspending and the pitfalls that accompany such habits of consumerism. As Diderot wrote in his essay describing his experience, “I was the absolute master of my old robe. I have become the slave of the new one.”

There are ways to handle your debt responsibly while maintaining a cash flow, but spending habits could make or break a person’s finances.

Tom Knickerbocker

Executive Vice President of Ameritech Financial

Essentially, when you buy something nice and new you may feel the need to buy other nice new things to match it because people often gain a sense of self from the things they own. So if you are content with the rug in the living room, don’t replace the curtains. If you do, you’re likely to need a new rug — or at least feel like you do. This effect can be offset, however, by good spending habits and close attention to any debt a person may have.

With student debt now the second highest form of debt in America, behind only mortgage loans, this issue may hit students and graduates particularly hard. When graduates find themselves in higher paying jobs than they have personally had before, the desire to spend money can easily take over a person’s consumer habits. While it is important to stay on top of student loans, debt may fall down the priority list.

“There are ways to handle your debt responsibly while maintaining a cash flow,” began Knickerbocker, “but spending habits could make or break a person’s finances. For people with outstanding student loans, income-driven repayment plans present one way of remaining up to date on your loans while also negotiating the consumer landscape.”

An income-driven repayment plan, or IDR, may offer an easier way for a person to stay current on his or her federal student loan with payments determined by the borrower’s income and family size. When the Diderot effect creeps into a person’s spending habits, options like this may represent one way of possibly securing a level of financial freedom conducive to healthy spending habits. Without the “mad desire to stock up beautiful things” that Diderot felt after his initial purpose, a consumer can find a happy medium between overspending and under indulging.

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.

Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Ameritech Financial prides itself on its exceptional Customer Service.

Ameritech Financial Newsroom


To learn more about Ameritech Financial, please contact:

Ameritech Financial

5789 State Farm Drive #265

Rohnert Park, CA 94928


Source : Ameritech Financial
Business Info :
Ameritech Financial

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