By Eric Swanson

The new Forbes’ list of richest people in the world was recently released. In interesting news, the new richest person in the world is from Mexico named Carlos Slim Helú. However, the more interesting news is the drop in American wealth from every statistical standpoint.

Forbes.com writes,

“U.S. billionaires still dominate the ranks, but their grip is slipping. Americans account for 40% of the world’s billionaires, down from 45% a year ago.”

“The U.S. commands 38% of the collective $3.6 trillion net worth of the world’s richest, down from 44% a year ago.”

“Of the 97 new billionaires on the list, only 16% are from the U.S. By contrast, Asia made big gains, adding 104 moguls.”

“Eleven countries, including China, India, Turkey and South Korea, have at least double the number of billionaires they had a year ago.” — Forbes.com

As the video describes, as businesses rely on consumer debt to sustain their business it leads to a false outlook on economic growth.  As consumers rely on personal debt to sustain their lost wealth it leads to a false outlook on net worth.  As America continues to resist the changes in a global economy by taking on more debt to sustain current consumption they are creating a false outlook of sustainability.

As individuals who are seeking to beat debt, let us not continue in the cycle of more personal debt.  Let us embrace the reality of the situation and make it better through more sustainable and creative means.  As always live humbly, stay away from debt, and give generously in order to maintain balance with our world.

So, what do you think?  What does the new Forbes list tell you?  Is America trading its wealth for debt?  Is America trading its future for its present?

Images by dbking and r-z

BEATINGDEBT.org

–Convincing People To Stay Away From Debt–

By Eric Swanson

The Federal Reserve released its latest findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of January by 2.3 percent.

Unfortunately, non-revolving consumer credit went up 5 percent in January.  That means that the amount of auto loans and student loans went up tremendously in January.

Overall, consumer credit was up 2.4 percent in January.   This is the first time consumer credit was up in over a year.

Why did consumer credit finally start going up?

Does this mean that the frugal citizen has given up on saving more and spending less?

Is there pent-up demand by consumers from a year long recession?

Or are prices getting too high and forcing people to take on debt to survive?

The 4th quarter 2009 Consumer Credit results will be coming out in a few days.  These numbers are the figures that drives the Consumer Debt Clock.  It will be interesting to see if consumer debt will continue to go down after this report.

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

–Convincing People To Stay Away From Debt–

~~~~~~~~~~~~~~~

Past articles about consumer credit going down:

– In Tough Times, US consumers forging new behaviors

– Slapped by recession, can Consumer Nation rethink?

– What are investors waiting for?  Consumers.

By Eric Swanson

Bartering is fast becoming the new normal for frugal citizens.  Many business owners provide services that they are now willing to trade for other similarly valuable services or products.  The truth is, though money is tight, we can still work and provide for our needs without resorting to debt.

BeatingDebt.org

–Convincing People To Stay Away From Debt–

By Eric Swanson

On Feb 27th, I was invited by Robby of “Robby’s Hobbies” to be interviewed for WTRU.  “Robby’s Hobbies” is a radio broadcast about passionate people doing great things in the North Carolina and South Carolina area.

I met Robby at a Kingdom Business Building Event in Raleigh and was impressed by his testimony.  He shared with the business owners that he was the owner of an auto dealership and would see Christians come into his dealership and trade in perfectly good cars for more expensive cars.  He was appalled by the Christians taking on more debt when they had a perfectly good running car.  Through some inspired coordination, he was granted a spot on WTRU as the Christian Car Guy to help Christians be better stewards of their cars and not have to take on more debt.

After Robby’s testimony, I shared with him about ShopResponsibly.org and how we were trying to inspire more business owners to support responsible shopping decisions like he was trying to do with the Christian Car Guy.  He said he was impressed by the concept and wanted to invite me on his show.

Below is the result of that fortunate meeting.

Thank you Robby for inviting me on your show.  I appreciate the discussion.  God Bless!

BeatingDebt.org

–Convincing People To Stay Away From Debt–

The below picture is a graph of the U.S. inflation rate by month from Dec 2007 to October 2009.  Notice that inflation is positive until about the beginning of 2009 and then it starts going negative.

BeatingDebt.org

–Convincing People To Stay Away From Debt–

By Eric Swanson

An important part of the Keeping Pace program is to organize monthly debt evangelism and/or volunteer opportunities for members.  This month, the Keeping Pace Raleigh group organized an event at the NC Food Bank.

The Food Bank just received a shipment of about 9 giant bags of 5ft x 5ft x 5ft bags of potatoes and sweet potatoes.  This week, there were many high school and community college students present to receive credit for volunteering for school or legal issues.  Our job was to sort through the potatoes to find those that were still good for consumption and to bag them for easy distribution.

As always, when we give we always receive so much more.  Everyone that volunteers for a Food Bank comes away impacted by the great need and disparity within our community.  A statistic that was used in our welcome speech was that their Eastern North Carolina responsibility has 545,000 people at or below poverty.  In addition, last year they helped distribute 13 million pounds of food.  It is just staggering how many people are needing a blessing from God.  God is using organizations like Food Banks to feed the hungry, show compassion, and be the hands and feet of God.

Our choice is to get on board with what God is doing for His people or to continue seeking a selfish Mocha, Mercedez, or McMansion.

By living humbly, staying away from debt, and giving generously, we are more effective in becoming God’s hands and feet to the world around us.

What is your choice?

BeatingDebt.org

–Convincing People To Stay Away From Debt–

Just as the Pharaohs of Egypt once confined God’s people to slavery, today many Christians are severely limited in their serving Jesus fully because of a ‘new Pharaoh’, debt. Never in its entire history has America and her people been so completely entangled by debt. Pastor Steve looks at what the Bible says about borrowing and then God’s clearly prescribed method of freeing the Christian from the strangle hold of debt. – Ken Lewis

Image by roblisameehan

BeatingDebt.org

–Convincing People To Stay Away From Debt–

By Eric Swanson

In preparation of the Raleigh Valentine’s Day Debt Prevention Rally, I wanted to share with you a great idea that portrays the idea that we don’t have to go into debt to show our love to our significant other.  Parade Magazine for 7 February showcased an article that said,

You needn’t spend money to show your love.  Why not bond with your partner by helping others?…Rather than splurging on a fancy dinner, volunteer with your local chapter of Meals on Wheels or another group that lets you share the love with those in need. — Parade Magazine

That was an excellent suggestion to keep the focus on those less fortunate even during Valentine’s Day.  The point of our Debt Prevention Rally is to influence people to do more creative things than what the card, diamond, and flower companies want you to do.

Stay away from debt this Valentine’s Day!

Be Creative With Sharing Your Love.

Your Significant Other Will Appreciate It More.

BeatingDebt.org

–Convincing People To Stay Away From Debt–

By Wayne Coleman

The word debt is not the issue, but must be defined.

One commonly used definition of the word debt states that as long as ones assets exceed the value of their liabilities, technically they are not in debt. {This definition is made presumptuous by not considering that the value of the asset can fall while the amount of liability is not affected by market values. Should the value of the asset become lower than the liability before the contract is satisfied, that which was not debt, becomes debt.}

Another definition states that as long as one makes their payments and does not violate the terms of their credit contract, they are technically not in debt. {This definition leads to financial suicide. By the time you cannot make your payments, you have long since been in trouble.}

The third definition states that if you borrow for an appreciating item, that is an investment.  To borrow for a depreciating item constitutes debt. {This definition fails the same test as the first because it presumes the value of the asset to always appreciate. In definitions 1 & 3, debt is not determined by the borrowing, but rather by the value of the assets. }

The common bond between all of these definitions is that money must be borrowed before debt exists.  Therefore the true definition of debt becomes very simple, if you borrow you are in debt.

In order to settle the issue as to the obedience of the church borrowing money, one must first settle the issue of the obedience of borrowing money personally.  The following items should be given consideration in making this determination:

Borrowing was prohibited in the Old Testament.

Duet.15: 6 and Duet. 28:12 issue commandments from God that state “Thou shall not borrow”.  Careful study of these areas, especially Duet. 28:1-14 will define the loving grace of God as completely sufficient, to eliminates the need to borrow.

• Verse 10 is one of the key verses.  God chose to take a people the prosperity driven world {same as today} looked upon as being absolutely worthless and show this world who their God was by the way he prospered them.  This prosperity was not purposed to bless the people, but to glorify God.  However, in the process of God being glorified the people were blessed.
• Verse 13 states that by not borrowing they remain the head and on top, the positions given over to the lender when borrowing takes place.
• Verse 14 states we must be very careful not to bow down to other Gods for provision.  It is God’s desire that he meet all our needs from His grace according to our faith as part of an obedient relationship with Him

This passage most definitely warns us of the false God of credit. In the New Testament we are told in Romans 13:8 to “owe no man anything.”  Every building and renovation program in scripture was accomplished without borrowing.

Borrowing forces the borrower to become servant to the lender.

There are no exceptions.   Proverbs 22:7 states that the borrower becomes the lender’s slave.  Matthew 6:24 states, “No man can serve two masters; for either he will hate the one and love the other, or will hold to one and despise the other.  You can not serve God and mammon”. {material things}.

In order to use the lenders money, you must first bow down to all of his requirements, and since his wheel squeaks the loudest, he gets his money first.  If the lender is not completely satisfied he can pick up all the assets and leave you with nothing but the liability.

Borrowing is established through presumptuousness, not a faith that comes from hearing God.

Romans 14: 23 states that, “whatever is not from faith is sin”  Romans 10:17 states, “So faith comes from hearing, and hearing by the word of Christ.”  I make the assumption that anyone reading will agree that God was, is, and will always own all of His creation and that as stewards we are called upon to manage them according to His will.  Then how can we purchase a new automobile, finance it for 48 months without knowing the mind of God 48 months in advance, and assume that we are functioning by faith.  Do we have a guarantee from God of the income required to meet the lender’s requirements and do we have advance permission from God to use this future income for this purpose.  I personally have never met a person that had the mind of God 48 months in advance to this kind of detail. Use of the credit system is a presumptuous leap into the dark.  Acting upon the revealed truth of God, is a solid step into the light.

Borrowing hinders God from meeting our needs supernaturally .

God has never allowed a need for which He had not previously appropriated a provision.  We are accountable to submit all our need before Him in order that He may confirm the definition of our need and provision, define the circumstances as to our receiving the provision, and especially the timing of our having it.  It is God’s desire that he meet all our need in order to show us and those around us that He is our sufficiency.  II Corinthians 3:4-5 states in the KJV translation, “And such trust have we through Christ to God-ward, not that we are sufficient of ourselves as to think anything as of ourselves; but our sufficiency  is of God.”  There is no greater experiencing of God for the believer than to have a personal need, seek God, and have that need met in a way that can only be explained as God being the source.  The more often we experience God the keener our awareness becomes as to who He is in our life and we become an exhibit of the loving grace of God to those who watch us.  God defines our need as everything it takes to completely perform His total will for our lives.  If there is one need anywhere in our lives He has not met before we see the need,  He is not God and we should stop pretending that He is.  Part of the evangelistic ministry of our lives is to show others of His sufficiency.

Borrowing causes stress in the life of the borrower.

A little borrowing, a little stress.  More borrowing, more stress.  Bankruptcy is a privilege set aside exclusively for borrows.  Only those who borrow can declare bankruptcy.  Many if not most, marriages that end in divorce fail because of financial disorder.  Of the marriages where divorce does not occur, financial disorder robs the intended joy from the marriage.  Almost all family financial disorder is caused by borrowing.  Surely we can agree that borrowing causes stress.  This kind of stress is truthfully not a fruit of the Holy Spirit, but that of an evil spirit and does not exhibit a peace that passes all understanding.

Borrowing prevents God from saying “no” as an act of love to protect us when we have desires for things that prevent His will from being done and may harm us.

Has your child ever had a burning desire for something that you were wise enough to know would harm your child.  If so, your loving answer -was “no” in order to protect your child from the foreseeable harm.  Your child could go outside your loving care and borrow the item.   The harm comes because the child made a conscious choice to move outside to loving protection of the parent’s “no”.  When we pray we have usually self evaluated the situation and are simply asking God to agree with us.  Rarely ever will we hear a “no” and believe it is from God.  His “no” is from the same love as is His “yes”, but we can borrow and receive the slavery position with the lender, and stress that he was trying to protect us from.  Borrowing money is always a personal choice, never an accident.

The most critical indictment against Christians using borrowed money is that there is not one element of genuine God glorifying faith involved in the process.  Answer these questions:

1. How can you explain God as the source when money is borrowed? If the lender is an agent for God’s grace then the lost  and saved alike have the same access to His grace through the lender.
2. Does borrowing meet your need?  No, it actually increases your need by the increased cost added by the lender, but it does get you what you want, when you want it, without having to seek God.
3. Does borrowing eliminate paying cash?  No, in fact it causes more to be paid back in such a timely manner as pleases the lender and in all probability creating stress for the borrower.
4. Can you name one single anything about borrowing money that exposes God to you as a source of provision received in a state of freedom?  If you have ever had a need you know beyond all doubt that God met, you could testify the provision came with no strings attached.  The practical definition of the word “faith”, as it relates to provision and need in our relationship with our Father which art in heaven,  is that we are to live within  the limits of our provision.  Cash pay as you go is the definition of “Faith “.

We live in a culture whose objective of life is to have what it wants, when it wants it.  The false god of credit can satisfy that self-centered desire.  Paul implies in II Corinthians 5:9 that his ambition or objective is simply to please God.  Hebrews 11:6 informs us that this is impossible without the function of faith.  There is no evidence of genuine faith in borrowing. Until pleasing God becomes of a higher priority than having the thing you want and want now, the above referenced truths will not be understood.

Now to answer your original question, “Why should the corporate church be debt free”.

1. To set a good example for the believers.
2. To not make the Church servant to the lender.
3. To show a lost world that God is the sufficiency to all the things they are seeking.
4. To free moneys for missions and ministries. {Most of the evangelical  denominations of today spend more of God’s money on debt service than on missions.}
5. To confine God’s financial activities inside the framework of His Church.
6. To prevent the stress from borrowing that can quench the spirit of the people and even destroy the local corporate Churches {There have been numerous Churches across the land in the recent past that have lost their facilities due to foreclosure.}
7. To be obedient to His word.

BeatingDebt.org

–Convincing People To Stay Away From Debt–

The Federal Reserve released its latest findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of December by a tremendous 11.7 percent.  This news is continued good confirmation for those who believe in beating debt.  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 5.2 percent in December.  That means that the amount of auto loans and student loans went up tremendously in December.

Overall, consumer credit was down only 0.8 percent in December.   Since it went down overall, it 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

–Convincing People To Stay Away From Debt–