By Eric Swanson

The game of musical chairs is unfair. Children play the game with playful music in the background while circling around fewer chairs than there are children.  No matter how quick or cunning the children are, there is always going to be one child left out at the end of the round.  It is mathematically impossible to equitably seat all the children.  Of course, that isn’t the point of the game.  The point is to leave someone out.

What does musical chairs have to do with wealth?

In our current debt-based economy, banks create money by issuing debt to customers.  Though banks create the principle amount of the loan, they do not create the interest that is required to pay back the loan in full.  Therefore, the person must go out and be quick and cunning to “earn” the interest money from the economic system.  However, there will always be some people who, no matter how quick or cunning, will not be able to find the interest money from the economic system.  Since we live in a debt-based economy and banks only issue principle and not interest, there will always be not enough money to go around for everyone.

• Just like the game of musical chairs, there will always be someone that is left out and will have to declare bankruptcy on their debt because they were not able to find the interest money from the economic system.
• Just like the game of musical chairs, it is mathematically impossible for everyone to pay back their interest money if the banks only issue the principle amount of money.

Yes, there are some people that spend too much of their money on Mochas, Mercedes, and McMansions and find themselves in bankruptcy.  However, the greater point is that the current debt-based economy is an unfair system.  The system will always unfairly treat people by forcing them into bankruptcy, through no fault of their own, but through the systemic lack of tangible money.

The Bible discusses systems that are unfair.

The LORD abhors dishonest scales, but accurate weights are his delight. – Proverbs 11:1

Unfair systems are disliked by God

This verse challenges us to ensure a system that is fair and accurate.  Creating, supporting, and maintaining a system that plays musical chairs with wealth is unfair and is abhorrent to God.  The current debt-based economy and the subsequent banking system should be challenged.  We should use our God given brains and fellowship together to find a more fair, just, and equitable economic system.

People caught in unfair systems are innocent

Finally, with this understanding of the current musical chairs with wealth, we should look differently at those whom we call poor.  For the most part, these people that are poor did nothing wrong, so we shouldn’t treat them as though they have.  The way they act and perform is based on a system that treats them unfairly.  We should strive to help them.  If we are more quick and cunning to gain from the current economic system, then we should be willing to help out those who weren’t “so lucky” to find a chair in this musical chairs game of wealth.

So, as we continue our financial marathon, let’s truly understand the system in which we exist and help those that are caught when the music stops playing.

Picture by Gary Bridgman

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

Liz Pulliam Weston bravely defined consumers who make emotional shopping decisions as “Zombie Consumers”.  Most citizens would consider themselves rational shoppers who seek a good deal.  However, Ms. Pulliam Weston found many reluctantly honest shoppers who, looking back, made a “must…buy…now” decision.

Ms. Pulliam Weston defined “Zombie Consumers” as,

We buy in bulk, only to discard half of what we purchased. We snap up stuff on sale even if we don’t need it. We buy houses and cars based on the sticker prices, with no real understanding of the long-term costs.

This is zombie consumerism, mindless pursuit of “a deal” regardless of its overall effect on our finances.

Just the idea that something is on sale can trigger compulsive buying in some people, said Nancy Trejos, the author of “Hot (Broke) Messes: How to Have Your Latte and Drink It Too.” Some rack up stupendous credit card bills buying clothes they never wear or toys for children already overwhelmed with stuff. – Liz Pulliam Weston

The concept that shoppers would purchase things without regard to its effects is not unheard of.  In the following video, we see how marketing can compel many shoppers to get on a treadmill of shopping that can turn us into “Zombie Consumers”.

We can see that the “Zombie” tendencies can have a horrible effect on our personal lives.  The treadmill of shopping can lower our self-esteem and destroy our ability to get ahead in our finances.

The greater effect of “Zombie Consumers” is that they hurt their community.  If you have a person stuck on the treadmill of shopping, how effective are they as citizens, family members, or friends?  How can they find the time to volunteer within their community if they are stuck in the “must…buy…now” mentality?  The loss of effective community members due to “Zombie Consumer” tendencies hurts us all.

So, let’s stay away from the shopping that turns us into “Zombie Consumers”.  Let’s volunteer to make a difference within our community.  Let’s shop responsibly.

Picture by Miserlou Behind The Aperture

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

Recently, the Fed made a decision to buy Treasury Bonds in an effort to help entice citizens to take on more debt.

The Fed said Tuesday that it would spend a relatively small amount of money — about $10 billion a month, economists estimate — buying government debt. The move is designed to drive interest rates on mortgages and corporate borrowing at least a little lower and help the economy grow faster. – Associated Press

This proves once again that the strong powers within the government and society understand a concept that many citizens do not:

Our economy does not grow unless its citizens bind themselves to debt.

We are a debt-based economy.  The government knows this, which is why it makes strategic decisions to entice people to go into more debt.  Consider the current decision by the Fed to lower interest rates and past examples of the “Cash for Clunkers” program, “First Time HomeBuyer’s credit“, and the “Cash for Appliances” program.  These are all programs determined to convince Americans to go into debt so they can “help grow the economy.”

Even though our government and many sectors of our economy are trying to convince us to take on more debt, we must resist.  We must not give up our freedom for the good of the economy.  Getting rid of our debt-based economy is painfully cleansing.  Becoming debt free is important spiritually and economically for you.  Resist the temptation to take on more debt.

Picture by bransorem

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

The Federal Reserve released its latest preliminary findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of June by a healthy 6.5 percent. This means that we have a lot of people that are also reducing their debt and will relate to you on your financial marathon in beating debt. Seek them out, learn from each other, and form a relationship with them which can provide motivation when the financial marathon gets tough.

Unfortunately, non-revolving consumer credit went up 2.4 percent in June.  This means more people are willing to take on long term debt in the form of mortgages.

Overall, consumer credit was down a slight 0.7 percent in June. Nonetheless, citizens beating debt is great news because it means that we are more willing to pay off consumer credit and earn our freedom than struggle under the painful agony of debt.

In addition, these numbers should help the Consumer Debt Clock to continue to go down.

How much more can we, as a nation, continue to drive the clock down?

For more info on the Federal Reserve’s numbers,
click here.

To add the Consumer Debt Clock to your blog/website,
click here.

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

Donna Rosato wrote an article for Yahoo’s Financially Fit series that showcased 8 families and their “extreme” saving habits.  These families shared with the public their truly secret secrets to saving money which enabled them to have freedom in their current lifestyle choices.

The list of valuable ideas are:

• Avoid Debt
• Delay Gratification
• Create Multiple Streams of Income
• Live Below Your Means
• Cut Down On Everyday Expenses

Each family had a unique story to share that featured their ability to use their secret towards financial independence.  Reviewing that list of secret secrets, one could easily summarize those lessons into something that is not secret, but has been trumpeted for many years.

The idea to “live below your means” is quite similar to the idea of living humbly.  This idea comes from the Bible in Proverbs 13:7 which states,

There is that maketh himself rich, yet hath nothing: there is that maketh himself poor, yet hath great riches.

“This verse shows the nature of two kinds of persons. One person seeks to be viewed as having much, but is really very poor. Usually this person is supported by personal debt to support a lifestyle above their means. The other person seeks to be viewed as not having much, but is really very rich. Usually this person is striving to live a more humble life due to personally, spiritually, or environmentally principled reasons.” – Beating Debt Bible Commentary accessed 21 July 2010.

The second trend we can look at is the idea to “avoid debt” which is quite similar to the idea of staying away from debt.  This idea comes from the Bible in Deuteronomy 15:6 which states,

For the LORD thy God blesseth thee, as he promised thee: and thou shalt lend unto many nations, but thou shalt not borrow; and thou shalt reign over many nations, but they shall not reign over thee.

“God did not intend for His people to be in debt. God understands that debt makes you a slave to someone else besides Him. So, He wanted His people to be a ruler of many nations through economic means, and not a slave. However, how many Christians today are slaves to other people, organizations, or nations and not to God, because of their debt? How can we cleanse ourselves of this debt and live up to God’s intent that would make us economic rulers?” – Beating Debt Bible Commentary accessed 21 July 2010

So though Yahoo, Ms Rosato, and I used the term “secrets” to entice readers to view their article, the truly secret secrets to saving money is not anything hidden.  The valuable information we need to make great decisions for financial independence can be found in God’s Word.  I challenge you to look to His Word for guidance and stay committed to obeying what we find in the Bible.  I also encourage you to check out Ms. Rosato’s article and see how those families are using proven Biblical principles to find financial independence.

Picture by psyberartist

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

The Federal Reserve released its latest preliminary findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of May by a tremendous 10.5 percent.  This means that we have a lot of people that are also reducing their debt and will relate to you on your financial marathon in beating debt.  Seek them out, learn from each other, and form a relationship with them which can provide motivation when the financial marathon gets tough.

In addition, non-revolving consumer credit went down 1.4 percent in May.

Overall, consumer credit was down a staggering 4.5 percent in May.   This is surprising news because April’s preliminary data was showing that citizens were taking on more debt for the third month in a row.  Nonetheless, citizens beating debt is great news because it means that we are more willing to pay off consumer credit and earn our freedom than struggle under the painful agony of debt.

In addition, these numbers should help the Consumer Debt Clock to continue to go down.

How much more can we, as a nation, continue to drive the clock down?

For more info on the Federal Reserve’s numbers,
click here.

To add the Consumer Debt Clock to your blog/website,
click here.

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

What is the most recognized Sabbath day in America?

Sunday

What is the most profitable day for retailers in America?

Sunday

Why do some Christians say Sunday is the Sabbath and then go out to malls and restaurants to force others to work on their holy day?

In the Old Testament, God told the Hebrews to “Honor the Sabbath”:

But the seventh day is a Sabbath to the LORD your God. On it you shall not do any work, neither you, nor your son or daughter, nor your manservant or maidservant, nor your animals, nor the alien within your gates. – Exodus 20:10

As many Christians believe today, we are not bound by those laws of the Hebrews.  But, out of respect, Christians strive to uphold the 10 Commandments.  Christians seem to find it easy to list more popular Commandments like

• Honor your parents.
• Thou shalt not murder.
• Thou shalt not steal.

But why is honoring the Sabbath such a forgotten Commandment?

Do we think shopping is not work?  To facilitate the shopping experience, many people must be employed.  Some stores must double their personnel in order to accommodate the amount of people seeking to buy their products or services on that one day.  As Christians, should we be forcing people to work on the Sabbath just because we want to shop for products and services?  Mark Daniels shares his insight in a recent Crosswalk.com article,

Perhaps, as a society, we are past the days we might agree to carve out a day each week to set aside the baser, daily demands of mere capitalism in favor of the higher pursuits of faith and family. If so, we’ll continue to suffer from the cumulative effects of unrelenting physical, emotional, mental, and spiritual exhaustion. But much worse, we’ll miss out on one of God’s greatest gifts to His beloved children: the privilege of sharing in His Shabbat. – Mark Daniels

Let’s imagine an economy in which Christians do not shop at least one day a week.

That thought raises some very interesting questions…

• Would there be less people forced to work on the Sabbath if Christians stayed away from consumerism at least one day a week?
• Would the environment be cleaner because there were less cars on the road for at least one day of the week?
• Would Christians be going into so much debt if they planned their shopping around the Sabbath, instead of on it?
• Would there be more dedicated family time if more Christians found other things to do on the Sabbath rather than shopping?

If all those questions created positive spiritual, financial, and environmental answers and benefits, should Christians continue shopping on the Sabbath?

Should Christians “Honor the Sabbath” by not shopping at least one day a week?

Image by Joe M500

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

In a surprising move by the leaders of the 20 biggest economies, the G-20 decided to halve national deficits by 2013.

“‘Advanced economies have committed to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016,’ according to the statement.

World leaders generally sided with cutting spending and raising taxes, despite warnings from President Barack Obama that too much austerity too quickly could choke off the global recovery.” – Associated Press

This is a surprising, but positive turn of events that was not American-led.  It seems the rest of the world understands the need to place limits to a nation’s debt consumption.  It seems the rest of the world understands that unrestrained debt consumption is not sustainable and harmful to the macro-economy.

It wasn’t too long ago that influential leaders understood the pain that too much debt can have on a country:

“I, however, place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared.” – Thomas Jefferson

However, “history has a way of repeating itself”, especially for those who don’t learn from it, right?

How does this news affect you?  Do you believe that Americans, seeing their leaders take a position of debt reduction, will in turn start reducing more personal debt?  Will this news affect the Consumer Debt Clock?

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

On June 10th, the Federal Reserve released its latest findings on Consumer Debt Outstanding.  In reflection of good personal choices, personal debt went down by 2.4% for the first quarter 2010.  This is amazing because it brings the total personal national debt down to just around $13.5 trillion.  Also, for the first time ever, personal debt did not grow for the seventh quarter in a row.  This decrease was due to a 3.8% drop in household home mortgage debt AND a 1.6% drop in consumer credit.

Maybe we can interpret that as people are starting to turn away from using loans and credit cards as a normal process to make purchases.  Maybe we can interpret this data as people learning about the advantages of using cash and debit cards to make purchases.  Maybe we are starting to pay off our debts to earn our financial freedom.  Maybe we as Americans are getting closer to our Debt Independence Day.  This is all great news!

Since debt is going down, BeatingDebt.org updated the scripts on the Consumer Debt Clock to continue counting down.  Isn’t that wonderful?!

Check out the Consumer Debt Clock that is going down in value and feel free to add it to your website to encourage others to help decrease our consumer debt addiction.

Can we keep up the trend of the clock going down for another quarter?

Can we help it along by paying off our personal debt?

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

The Federal Reserve recently released its latest preliminary findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of April 2010 by a generous 12 percent.  This could be continued proof of Americans distrust and dislike for credit cards.

Unfortunately, non-revolving consumer credit went up 7.1 percent in April.  That means that the amount of auto loans and student loans went up tremendously.

Therefore, overall consumer credit was up 0.5 percent in April.  This is the third time consumer credit was reported to have gone up this year.

In good news, the Federal Reserve is reporting that consumer credit for Q1 is down 1.6 percent.  This means that we have a lot of people that are also reducing their debt and will relate to you on your financial marathon in beating debt.  Seek them out, learn from each other, and form a relationship with them which can provide motivation when the financial marathon gets tough.

In addition, these numbers should help the Consumer Debt Clock to continue to go down.

How much more can we, as a nation, continue to drive the clock down?

For more info on the Federal Reserve’s numbers,
click here.

To add the Consumer Debt Clock to your blog/website,
click here.

BEATINGDEBT.org

–Teaching Debt Prevention–