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Knee Deep in Debt

from the May 06, 2008 eNews issue
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"The rich ruleth over the poor, and the borrower is servant to the lender."
- Proverbs 22:7

The traditional American Dream, especially for those of us who grew up in families that survived the depression of the 1930s, was to have a home "free and clear" of any mortgages. The security of a debt-free home was the goal of every family in the 20th-century United States, however that is changing. Being in debt has become a way of life for many Americans. Recent economic data shows that consumer debt, particularly credit card debt, is on the rise. The stigma once associated with debt is gone, and it has become the norm to borrow money even for every day items like gasoline and groceries

The United States has become a nation of debtors. In recent years the level of household debt in America has surpassed the level of household income, so for the first time in our collective history we owe more money than we make. Consumer debt in America has risen to a record high of more than 2.5 trillion dollars. Today the average US household has more than $9,000 in credit card debt and spends more than $1,300 a year in interest payments. Meanwhile, the national debt (the amount of money owed by the US government) has surpassed 9 trillion dollars – and is increasing at a rate of about $1.40 billion per day.

"Debt is so ingrained into our culture that most Americans can't even envision a car without a payment, a house without a mortgage, a student without a loan, and credit without a card. We've been sold debt with such repetition and with such fervor that most folks can't conceive of what it would be like to have no payments," says Dave Ramsey, a well-known talk radio host and Christian financial counselor. While many Americans have become accustomed to making monthly payments, the truth is that debt is contrary to God's plan for our lives. The scripture clearly says the borrower is slave to the lender - God would have us free of that kind of bondage. Getting out of debt is one of the four basic steps of what we call "the Vortex Strategy."

The Vortex Strategy

Money is one of the most important inventions of humankind. Without it, a complex, modern economy based on division of labor, and the consequent widespread exchange of goods and services, would be impossible. Unfortunately, many experts believe we are on the verge of a financial crisis. In recent years the value of the US dollar has dropped significantly, inflation has increased, consumer debt has reached an all-time high, and the US housing market has become dangerously unstable.

It is impossible to predict what exactly the coming months will bring, yet we need to be prepared both practically and spiritually. Anyone that presumes that the coming 12 to 24 months are going to be smooth sailing just hasn't done their homework. It is clear we are facing turbulent times ahead. So if the United States is indeed facing a financial crisis, what should we do about it? How can we prepare for times of economic uncertainty? What does the Bible say about our financial stewardship? Chuck tackles these tough questions in his new briefing titled The Vortex Strategy (click on the link to learn more).