Today on MoneyLife with Chuck Bentley
Thursday, November 12, 2009
Financial Snapshot of Ourselves
I wanted to talk about where we’re headed and what corrective action can be taken. We need to make some immediate changes. I'm going to tell you what God’s Word says we need to do. If you have some old cell phones, you can go to CellForCash.com to sell them. The site allows you to look up the make and model of your phone and see if it’s one being bought back. Buy back prices range from a few dollars to $100 for new models. If you agree to the price offered, you can request a postage-paid box be sent to you. Send the phone along with the charger. The phone must be able to make a call. A company sells the phones in other world markets. When confirmed, you’ll receive a check for your old phone. Some charities also receive cell phones as a donation. In the U.S., household debt increased to $13.8 trillion in 2008. Back in 1988, it was $3 trillion. Today, $45,000 is owed by every person in the U.S. That includes consumer and mortgage debt. Sadly, household debt is growing. (See "Startling Statistics 2009" in pdf. To put these numbers in perspective, NBA superstar Labron James’ salary is $40 million a year. He would have to play basketball for 25,000 years to earn $1 trillion. Let’s break down the $45,000 of debt for each person in the U.S. Consumer debt is $2.6 trillion or $8,467 per person, including debt that has no collateral like credit card debt. We are an indebted people. There's been very little change in the growth of debt recently because of the Great Recession. People are having trouble getting more debt, but their attitude about it hasn’t changed. Americans believe they should have what they want now. We sign up for any credit cards offered to us without reading the fine print. We’re mortgaging our futures for pizza by charging it on a credit card with 18% interest and a $5,000 balance and taking 21 years to pay for it. We must reverse this course and reduce our debt. We have a mortgage, second mortgage, HELOC, consumer debt, and auto loans. Everything is financed. The most important step in reversing this is to make the decision to be debt-free and ask the Lord for help. Then, start attacking the credit card debt. When that’s gone, turn to the debt on your home beginning with the HELOC, then the second mortgage, then the first mortgage. Christians should set an example for others. God doesn’t want us to be a servant to anyone but Him. Take a stand today and say by God’s help I’m going to reverse the trend in my household. You’ll see results. Today, we're talking about the debt of American families today instead of the debt of the federal government. We're focusing on individuals because a nation can’t be stronger than its citizens. We contribute to the economic health of the nation. Right now, we’re going in the wrong direction. Household debt is rising, consumer debt is rising. We need to commit to doing things differently. The personal savings rate in 1988 was 7.3% of our annual gross income. It peaked in 1992 at 7.7%. In 2005-2006, the personal savings rate was 0% despite an economic boom. The more debt people had, the less they saved. People replaced saving with borrowing. In 2008, the personal savings rate was 1.7% in 2008.
In June 2009, it had risen to 4.6%. Personal bankruptcies in the U.S. have skyrocketing over the last 20 years. In 1988, we had 549,612 personal bankruptcies. In September 2005, the number exceeded 2 million. Legislation was used to address this problem by making it more difficult to file bankruptcy. The number dropped 70%, but by the end of 2008 it was back up over 1 million, and it's 34% higher this year than at the same time last year. When you’re living on the financial edge and borrowing more than you make with no personal savings, it’s the perfect recipe for living in financial bondage. That shouldn’t be normal. We're also seeing a dramatic rise in foreclosures the last three years. We've gone from under a million to about 3 million in 2008, 15% higher this year than last year. Unemployment topped 10.2% recently. Many people are struggling financially as they seek new jobs. The average length of unemployment right now is 6 months. the problem is that we don’t have our financial houses in order. If you see yourself in any of these statistics, you’re experiencing the symptoms of financial bondage. But you can get out of the trap. You can make a difference for yourself and your country. We need to show people the way. I didn’t teach on this topic today to make anyone feel guilty. I hope this helps all of us wake up and have an urgency to break free of man’s economy and live in God’s economy. God doesn’t want you to live in bondage. When you give the Lord your heart and cry out to Him for help, He will. Do your part by faith and take the steps necessary to get out from under the world’s control. Crown will come alongside and help you. It doesn’t matter how deeply in debt you are, you can take small steps each day to get out of it. You’ll soon be encouraged by your progress. We want to help you stay on track through this program. Admit the truth that you’re in financial bondage and ask God for help.
He will renew your mind as you study His Word.
You will be liberated spiritually and financially as you trust more in Him I want to invite all of you champions of Crown to come to the Crown Reunion. It will be held at Ridgecrest Conference Center in Asheville, NC, Nov. 19-22. It's a great time of fellowship, training, and celebrating. We're expecting over 400 people. You’ll leave refreshed and equipped. Today is the last day to register. Pray about joining us. |
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Steps to Making a BudgetIn making a budget, there are several steps, each requiring individual effort. |
Need for a Spending PlanWithout a spending plan, it is impossible to know where your money goes each month and whether you will have available funds for the things you need. |
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Budget BustersBudget busters are areas that can result in financial disaster if not accounted for properly. |
Finding Financial FreedomThe Lord owns everything and we are merely stewards of what is His. He has clear ideas on how He wants His people to function as His stewards. |
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Other Resources: |
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Today I’m going to give you a financial snapshot of ourselves. I'm going to share with you some troubling stats that tell us where we are as individuals financially.
