American Credit Card Debt – Symptom of a Debt-Based Currency

American credit card debt ballooned rapidly in the 90s and early to mid-2000s leaving many families with total combined balances in excess of $10,000. Some used the easy credit irresponsibly, racking up $50,000+ in consumer debt (not even counting car debts).

Then, in the fall of 2007, signs of weakness in the housing market — and the economy in general — began to appear. By the fall of 2008, the entire economy seemed to be falling apart.

All of a sudden, Americans were struggling to repay their credit card debt. They were even struggling to pay their mortgages.

One commenter on Digg suggested that credit card debt wasn’t the problem, but rather that irresponsible Americans were the problem.

Yes, I laughed. On the surface, it’s easy to agree with. Irresponsible people get what they deserve, right?

But the issue is actually much more complicated because the dollar is a debt-based currency. It is not real money. Every dollar in circulation is actually owed to the Federal Reserve — with interest!

In other words, our entire economy is based on debt.

Credit Card Debt Is Inevitable

The way the American economic system works, credit card debt — and, indeed, all forms of debt — is inevitable. Because the only way the economy stays healthy is if the money supply is expanding.

And the ONLY way new money is created is through debt.

This may be hard to believe. And since I don’t have space in this article to explain how this works, I will simply point you to G. Edward Griffin’s masterpiece, The Creature from Jekyll Island.

In America, every dollar magically turns into 10 dollars, maybe more, all through the dubious practice of fractional banking.

American Blindness

Most Americans don’t really understand how our money system works. They are blind. As a result, they hack at the branches instead of striking the root.

The branches are things like credit cards, irresponsible behavior, etc. These are not the real issue. The root is our debt-based money system. This is what is hurting us.

Right now, Americans are paying off debt faster than they ever have before. They’re tightening their belts, cutting back, using extra money to reduce debts. They are borrowing less.

This is all good. All things being equal, having no debt is better than being in debt. So I commend any person or family that is fighting the good fight (so to speak).

But until our money system gets a complete overhaul (including real money), then Americans will continue to bear the burden of oppressive credit card debt.

Christian Debt Reduction – How to Find Peace from Debt

For believers, Christian debt reduction is a big decision. You desperately want to get rid of debt and finally have peace in your life again. You know you need help, but you don’t want to hire just anybody. You want to hire a believer like you.

So where do you start?

First, it helps to understand the process you will likely go through. There are two options for Christian debt reduction: there’s debt consolidation and there’s debt settlement.

When you still have some breathing room, it’s more likely that you’ll try to consolidate debt, lowering interest rates and minimum payments in the process.

But when you’ve racked up so much debt that you can’t even make your minimum payments anymore, it’s likely that you’ll put together a plan for debt settlement.

Christian Debt Reduction through Settlement

Debt settlement is a process where you stop paying your creditors and save the money you would normally pay them. When you have a certain amount saved up, you then approach your creditors to try to get them to settle with you.

Basically, when you settle, your creditor is agreeing to accept a certain amount of money less than what you owe. Sometimes this can be less than 50% of what you owe.

By accepting your payment, your creditor agrees to write off the rest of your balance.

While some individuals attempt to manage this process themselves, it is strongly advisable to hire a Christian financial organization that is experienced with these kinds of situations. They will be able to manage the process for you and make sure everything is happening according to your plan.

Pay Off Your Debts Faster and Find Peace Again

Unfortunately, when you have crushing debts that you can’t seem to pay off, it can affect you physically, emotionally, and spiritually. Many people have trouble sleeping, get angry, and distance themselves from God.

One of the reasons Christian debt reduction organizations exist is to help believers find peace and draw close to God again. Many times, this can only happen once a certain level of financial stability is achieved.

Did you know that God actually made provisions in His law for people who fall into debt?

Every seventh year was a rest year where you could actually take a break from repaying your debts. Every 49 years God commanded that a Jubilee be kept. During the Jubilee, all debts were forgiven!

Of course, there’s not a country in the entire world that acknowledges or follows this Biblical precept. But wouldn’t a Jubilee be awesome? :-)

Let Christian Debt Experts Help You

Thankfully, there are many believers who sincerely care about how debt is affecting Christians. And they are committed to helping Christians become debt free.

One such organization that I’m aware of is Trinity Financial Mission. It is a non-profit company dedicated to helping Christians find relief from debt.

This is the same company that my brother and his wife are using. They are currently following a debt settlement plan. My brother told me they got their first debt settlement offer from Citi the other day. Woohoo!

It was hard for my brother to admit that he had accumulated more debt than he could handle. It was hard for him to admit that he needed help. It’s hard for anybody, Christian or not.

But if you have reached a point where you recognize the severity of your debt problem, then I strongly recommend getting Christian debt reduction help. Often it’s just a matter of filling out simple web form or picking up the phone and making a call.