Beating Debt News
By Eric Swanson
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Podcast Description
Providing news articles from a debt prevention perspective.
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CleanOpen Letter to Ms. Michelle Singletary | (http://www.beatingdebt.org/articles/wp-content/uploads/2011/07/washingtonpost_thumb.png) Dear Ms. Singletary, I am a new reader to your column, The Color of Money, in The Washington Post. What has attracted me to your writing is the delicate way you tell the truth of personal finances that does not get told by most personal finance gurus. For instance, you recently told parents that they are delusional about college scholarships. Beyond the hype of their kid getting scholarship money, you told readers: “It’s delusion that soothes many parents who know they haven’t saved as much as they could have saved, and/or those who cheer their children on to go to their college of choice regardless of the cost. They think if their child gets superior grades, can play an instrument exceptionally well or is a star athlete, he or she will qualify for substantial financial assistance. Some will. Most won’t.” – Get Real on Scholarships (http://www.washingtonpost.com/business/get-real-on-scholarships/2011/03/08/ABM4LfR_story.html) – March 12th In an another example you told readers who are not used to sharing space due to their American sense of entitlement that they need to get over it and get real with their finances: “Yet for lots of folks, sharing an apartment or opening up their home to a renter or multiple renters…is met with fear…Well, you know what? Get over your issues. Tough times call for getting rid of the fear or your sense of entitlement — or both. If you’re spending more than a third of your net monthly income on housing and can’t cut your expenses any more, you need a roommate. If you have lost your job and you’re struggling to make your mortgage payment, you need a roommate. If you’re coming out of college with loads of student loans, you probably will need a roommate.” -- Learn how to share housing in order to save on rent — and save your sanity (http://www.washingtonpost.com/learn-how-to-share-housing-in-order-to-save-on-rent--and-save-your-sanity/2011/06/06/AGnf8qQH_story.html) – June 11th Finally, it was great to read about your support of the Consumer Financial Protection Bureau when you wrote about some of the good things they are trying to implement against the wishes of many in the housing industry when you wrote “What to Know Before You Owe (http://www.washingtonpost.com/business/2011/05/17/AFeeac8G_story.html)”. So, it was disheartening to read in your latest column titled “Doors Slam Shut with 20 Percent Down” that you sided with the Home Builders, Mortgage Bankers, and Realtor Associations and not the Consumer Financial Protection Bureau. When have those organizations been known to represent sound financial advice? Your article stated “it would take more than a decade for the median family to save enough for a 20 percent down payment on even a modest home”. With that in mind, your article continued to hammer on how many people would be left out of homeownership. I disagree with that conclusion, given the universal acceptance and marketing that encourages homeownership at all cost no matter the PMI, sub-prime loan, or ARM expense that a person incurs. I was most disappointed that you did not feature your past confidence to tell the financial truth regarding how great of an expense houses have become. What is more scary: that some people won’t be able to purchase a home as a result of this rule or that homes have become so expensive that it takes “more than a decade” for a family to save even 20% of the cost of a house? Since you are a personal finance expert, you recognize how mortgages (debt) enable/fuel demand, which fuel prices. Since the American government has encouraged and subsidized mortgages for 60+ years, it is no wonder that prices have grown consistently. However, when do financial experts start standing up and opposing the continued growth of housing prices? We know that: * Most middle class Americans can’t even afford the down | 7/6/11 | Free | View In iTunes |
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CleanG-20 commits to reduce national deficits | By Eric Swanson (http://www.beatingdebt.org/contactus.php) (http://www.beatingdebt.org/articles/wp-content/uploads/2010/06/G20_2.jpg) 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 (http://digg.com/d31VEYi) 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 (http://www.youtube.com/watch?v=GGbvHDukc_A). 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 (http://www.beatingdebt.org/ConsumerDebtClock.php)? BEATINGDEBT.org –Teaching Debt Prevention– | 6/30/10 | Free | View In iTunes |
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CleanWill our debt break America? | By Eric Swanson (http://www.beatingdebt.org/contactus.php) (http://www.beatingdebt.org/articles/wp-content/uploads/2010/04/erasedebt_thumb.png) In a recent Washington Post article, Joel Achenbach asks a very tough question, "Will the debt break Wa... | 4/29/10 | Free | View In iTunes |
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CleanWill you accept the Digital Coin as currency? | By Eric Swanson (http://www.beatingdebt.org/contactus.php) (http://www.beatingdebt.org/articles/wp-content/uploads/2010/04/DigitalCoin.png) Paul Grignon, the creator of Money as Debt (http://www.beatingdebt.org/KeepingPace/index.php?main_page=product_info&cPath=5_1&products_id=1) movie, created a proposal of a digital currency system based on the LETS system. On his website, Digital Coin (http://digitalcoin.info), he provides two videos that easily describe the problems with our current currency system and benefits of switching to a new digital currency based on the actual forms of wealth. Currently, our system is a debt-based economic system (http://www.youtube.com/watch?v=GGbvHDukc_A). As governments and banks create debt, they are creating money. Debt, as you know, is borrowing from the future to pay for today. So, as we continue to take out more debt, we are robbing our future and our future growth (http://www.beatingdebt.org/articles/anti-consumerism/is-america-replacing-wealth-with-debt). Obviously, we can not keep on robbing our future, because eventually that limited future will become our present, causing a great economic downfall. Therefore, we must strive to brainstorm a new economic system that does not depend on enslaving its citizens to debt (http://blog.beatingdebt.org/2009/06/22/what-are-investors-waiting-for-consumers/) in order for it grow. Paul Grignon offers a very simple solution that is based on the LETS system. The Locally Exchanged Trading Systems (http://en.wikipedia.org/wiki/Local_Exchange_Trading_Systems) is a more developed barter system. With Digital Coin, as you provide goods and services to the marketplace, you are "paid" in digital currency that is not based on debt, but based on the tangible product or service the other person can provide. That digital currency then can be traded amongst the rest of the marketplace for other goods and services. The following video will help you more fully understand this practical solution. The Digital Coin concept of currency should be very meaningful for Christians. Since no one can deny we are living in the last days, how will Christians survive in the end times if we don't start preparing today for an alternate form of currency? The Bible says, He also forced everyone, small and great, rich and poor, free and slave, to receive a mark on his right hand or on his forehead, so that no one could buy or sell unless he had the mark, which is the name of the beast or the number of his name. - Rev 13:16-17 (http://www.beatingdebt.org/BDBC/index.php5?title=Revelation_13:16-17) How are we going to be able to deny the mark of the Beast in our economic transactions? If we are enslaved to debt, banks are our masters (http://blog.beatingdebt.org/2009/06/05/mad-as/). Therefore, when banks turn to the mark of the beast, what will all their slaves do? What will Christians do that are enslaved to banks? Turn to the mark! Christians need to start thinking about a new form of currency that will enable us the freedom to deny the mark. What will that currency look like? Can it be Digital Coin? Will you accept the Digital Coin as currency? To read a brief PDF version of Digital Coin, click here (http://digitalcoin.info/Digital_Coin_in_Brief_07-17-09.pdf). BEATINGDEBT.org –Teaching Debt Prevention– | 4/19/10 | Free | View In iTunes |
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CleanShould we lend to the less fortunate? | By Eric Swanson (http://www.beatingdebt.org/contactus.php) (http://www.beatingdebt.org/articles/wp-content/uploads/2010/04/thehand_thumb.png) The usual quote about helping the less fortunate is: "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime." - WikiQuote (http://en.wikiquote.org/wiki/Proverbs_commonly_attributed_to_be_Chinese) However, according to a recent New York Times article, helping the less fortunate has turned into something Stephen Colbert calls good business: "Give a man a fish and he'll eat for a day. Give a man a sub-prime fish loan, and you're in business, buddy." - Stephen Colbert (http://en.wikiquote.org/wiki/Stephen_Colbert) According to Neil MacFarquhar, banks found a new, lucrative source of income by convincing the extremely poor to take out microloans. He writes, "In recent years, the idea of giving small loans to poor people became the darling of the development world, hailed as the long elusive formula to propel even the most destitute into better lives. Drawn by the prospect of hefty profits from even the smallest of loans, a raft of banks and financial institutions now dominate the field, with some charging interest rates of 100 percent or more. Underlying the issue is a fierce debate over whether microloans actually lift people out of poverty, as their promoters so often claim. The recent conclusion of some researchers is that not every poor person is an entrepreneur waiting to be discovered... The microfinance industry, with over $60 billion in assets, has unquestionably outgrown its charitable roots." - Neil MacFarquhar (http://digg.com/d31OQwR) This begs the question of which method helps the less fortunate the best: giving a fish, lending a fish, or teaching a man to fish? The idea for microloans was built on some rather impressive merits that included a desire to be charitable and resulted in Nobel Peace Prizes. But how far can taking on debt help people that are already on the lowest echelon of the economic ladder? If the wealthy American consumption culture is any indication of long term sustainability, lending causes more problems (http://www.beatingdebt.org/articles/news/personal-debt-is-the-biggest-contibutor-to-inflation) than it solves. Mother Teresa (http://blog.beatingdebt.org/2009/07/13/can-america-learn-to-give-like-mother-teresa/) never needed to loan the less fortunate to make a real impact in her world. Bono (http://blog.beatingdebt.org/2009/05/16/it-is-not-about-charity-it-is-about-justice/) does not desire for the third world to take on more debt. So why would we think that lending a fish, at exorbitant interest rates, is going to help anyone except banks and investor class? Let's turn from our trust in banks and debt to solve our global social problems. Let's turn to God and learn to live humbly, stay away from debt, and give generously. The obedience to trust in God in those three action steps will help the less fortunate far more than lending a fish will ever do. BeatingDebt.org –Teaching Debt Prevention– Archived Related Posts * NonProfits need your vote * Deut 15:1-11 is still meaningful today * Giving God His Due (http://blog.beatingdebt.org/2009/08/17/giving-god-his-due/) * The Christian Paradox (http://blog.beatingdebt.org/2009/05/19/the-christian-paradox/) | 4/15/10 | Free | View In iTunes |
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CleanWhen is your Debt Independence Day? | By Eric Swanson (http://www.beatingdebt.org/contactus.php) (http://www.beatingdebt.org/articles/wp-content/uploads/2010/03/independenceday_thumb.png) We would like to introduce our newest project called: Debt Independence Day (http://www.debtindependenceday.org/) Getting out of debt and staying out of debt is a financial marathon. It will take discipline and dedication to beat debt. The first step is to determine when you can expect to be out of debt. This date is called your Debt Independence Day. I encourage you to create a spreadsheet program that will list you debts, interest rates, and current payments that will calculate your Debt Independence Day. -OR- Online Calculator (http://www.beatingdebt.org/BDCharts.php) Beating Debt Charts is a service that allows you to chart your debt, earn awards for beating debt, receive encouragement from friends, and discuss personal finance topics in your own private forum. When you subscribe to Beating Debt Charts you will also have access to the custom calculator that will help you determine your Debt Independence Day. All these services are included in your yearly subscription of $2.99. -OR- BDO Debt Repayment Plan (http://www.beatingdebt.org/KeepingPace/index.php?main_page=product_info&cPath=2_3&products_id=2) Use this excel document to calculate your Debt Independence Day using the rollover method. It will return the date you can expect to be out of debt based on your inputs. The great thing about this spreadsheet is you can save your inputs and update it as you see fit. This product costs $3. * Both of those products can you help you determine your Debt Independence Day. * After finding your Debt Independence Day, uniquely share that picture on Flickr. * Then share that picture with our Debt Independence Day Flickr Group (http://www.flickr.com/groups/debtindependenceday/). I hope this site enables you to live humbly, stay away from debt, and give generously. DebtIndependenceDay.org (http://www.debtindependenceday.org/) --Show off your Debt Independence Day to the world.-- When is your Debt Independence Day? BeatingDebt.org –Convincing People To Stay Away From Debt– | 3/26/10 | Free | View In iTunes |
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CleanIs America replacing wealth with debt? | By Eric Swanson (http://www.beatingdebt.org/contactus.php) 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 (http://digg.com/d31LIr7) 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 (http://digg.com/d31LIr7) The above quotes should come at no surprise, since we outsource almost everything to other countries and import almost everything else. The idea that we should become protectionists in our foreign policy to stop the bleeding of wealth transfer to other nations is not the answer. Nor is the answer going to be found in replacing that lost wealth with personal debt. However, that is what America is doing. Since the American consumer is not willing to give up their life[style] (http://kp.beatingdebt.org), they are replacing all this lost wealth with personal debt. Since employee income is dropping due to foreign competition, the American consumer is replacing the lost wages with personal debt. They are trading lost present wages with future wages. The American consumer is trading their future for their present. However, what happens when the future becomes the present given that the American consumer traded all their future wages. The American consumer will be left with two very hard choices: even further decrease in life[style] or taking on even more debt to maintain that life[style]. These ideas are similar to the following video. 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. (http://www.beatingdebt.org/articles/wp-content/uploads/2010/03/chickfila_thumb.png) 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 (http://www.flickr.com/photos/bootbearwdc/2072370579/) and r-z (http://www.flickr.com/photos/r-z/384866837/) BEATINGDEBT.org –Teaching Debt Prevention– | 3/11/10 | Free | View In iTunes |
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CleanPersonal debt is the biggest contibutor to inflation | By Eric Swanson (http://www.beatingdebt.org/contactus.php) 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. (http://www.beatingdebt.org/articles/wp-content/uploads/2009/12/1259959094-300x215.jpg) The below picture is a graph of the U.S. personal debt rate by quarter from 2007 to the most recent measure (http://www.beatingdebt.org/articles/news/household-debt-down-5th-straight-quarter) of Q2 2009. Notice that personal debt grew till about the end of 2008 and then it starts to go negative. (http://www.beatingdebt.org/articles/wp-content/uploads/2009/12/PersonalDebtRate07_09-300x180.png) These two graphs should look similar because personal debt is the biggest contributor to inflation. Let's think about that for a while. What does inflation mean? Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. - Wikipedia (http://en.wikipedia.org/wiki/Inflation) So, what kind of things would drive up prices? Demand drives up prices. If everyone wants a certain product, but the manufacturer can't keep up with the demand then prices will go up due to the scarcity of that item. So, what kind of things would drive up demand? More money within the economy. If the federal government starts printing more money and hands it out than everyone would demand more products, because they have more money. However, a more simple way to look at this, is the effects of credit cards and loans have on the economy and inflation. If the banks give you a $10,000 credit limit, you can now buy $10,000 more products than what you would have bought without the debt. Your new money creates new demand. New demand creates higher prices, which is the definition of inflation. Now let's take this idea to a macroeconomic level. If the whole economy sees how “easy” it is to buy more stuff with just a “low monthly payment” it creates more massive demand than the cash in our pockets would normally purchase. Our personal decisions to take on more debt corporately create more inflation, which erodes our purchasing power (http://blog.beatingdebt.org/2009/03/19/fed-launches-bold-12t-effort-to-revive-economy/). So, going back to those graphs... We now understand the connection between inflation and personal debt. The graphs show until early 2009, Americans continued to take on more personal debt which inadvertently continued to raise inflation and erode our purchasing power. However, after 2009, as we start paying off our debt, inflation went negative which increased our purchasing power. So, there are a lot of economic reasons for and against inflation. However, on a personal level, seeing that my own personal debt consumption helps erode society's purchasing power, should we continue to go into more debt? What about the poor? What about those on the lower economic levels of our society who barely have enough money. While we take out more loans to buy more stuff (http://beatingdebt.ning.com/video/the-story-of-stuff-ch-5), we are eroding their ability to stay above rising price levels. What did Jesus say about taking care of the poor (http://blog.beatingdebt.org/2009/05/16/it-is-not-about-charity-it-is-about-justice/)? So, let's think about those issues and how personal debt affects us and society in general. Hopefully, we can come to the conclusion that debt does not help society and that we should stay away from it. Learn more about staying away from debt by using BDO's Run Route (http://beatingdebt.org/BDORunRoute.php) on your financial marathon to beat debt. BeatingDebt.org –Convincing People To Stay Away From Debt– | 2/25/10 | Free | View In iTunes |
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CleanHow to prosper in this economy? | By Eric Swanson In the past decade, many Christians felt that their self-worth was wrapped up in the following concepts: Becoming Wealthy. But Jesus said, "But woe to you who are rich, for you have already received your comfort." - Luke 6:24 Seeking wealth leads only to temporary comfort. Establishing a comfortable life[style] (http://kp.beatingdebt.org). But Jesus said, "Woe to you who are well fed now, for you will go hungry." - Luke 6:25 Seeking a life of ease will eventually lead to a life of hunger. Seeking to be the most popular. But Jesus said, "Woe to you when all men speak well of you, for that is how their fathers treated the false prophets." - Luke 6:26 Seeking popularity leads to more problems. (http://www.beatingdebt.org/articles/wp-content/uploads/2010/01/sunsetthumb.png) If we want to be prosperous in this new economy and in this new decade, we should follow some of Jesus' other teachings: Live a humble life. Jesus said, "Blessed are you who are poor, for yours is the kingdom of God." - Luke 6:20 Seek to live a humble life and maintain a humble lifestyle, and you will be blessed. Live joyfully for Him. "Blessed are you when men hate you, when they exclude you and insult you and reject your name as evil, because of the Son of Man. Rejoice in that day and leap for joy because great is your reward in heaven. For that is how their fathers treated the prophets." Luke 6:22-23 Seek to live fully for Jesus, and you will be blessed. The prior decade saw many Christians trusting in money and power to get ahead. This decade, let us try to follow Jesus' words of living humbly and joyfully for Him and see what kind of impact we have on this world. BeatingDebt.org –Convincing People To Stay Away From Debt– Images by: nDevilTV (http://www.flickr.com/photos/ndevil/3491395689/) & nonsogoodphotography | 2/1/10 | Free | View In iTunes |
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CleanRecovery coming from materialistic consumers? | By Eric Swanson (http://www.beatingdebt.org/articles/wp-content/uploads/2010/01/whatyouown_thumb.png) When we hear about the recovery to the economy, does the idea of a materialistic consumer come to mind? If it doesn't, it should. Since we exist in a debt-driven economy (http://beatingdebt.ning.com/video/the-story-of-stuff-ch-5), the only way our economy grows is when a large entity within the economy takes out loans. The entity can be the government, businesses, or citizens. In the past, citizens took the brunt of the loan acceptance, thereby increasing the growth of the money supply and GDP. However, the newest fear is that citizens have finally seen through this cycle and are working to get out of it. Americans have finally understood that their debt leads to their enslavement to personal debt and financial strife. Some believe that the newly financially aware American makes better financial decisions and is more rational about his or her shopping. One aspect that could dramatically slow down the recovery is if... "Consumers become rational. Given the painful transformation of the U.S. economy, Americans ought to be saving like crazy and buying nothing they don't need. Some are, but it's not clear yet if Americans as a whole will save more over the long term or go back to spending nearly everything they have. The savings rate has crept up to about 5 percent, but that's still lower than the long-term average and far lower than you might expect after a collapse like the one we've endured. If savings continue to go up—a prudent move for most households—consumer spending will come down, leaving a hole in the growth of our gross domestic product, with little else to fill it. So hopes for a vigorous rebound rest on spendthrift consumers being as materialistic as ever. Now there's a strong foundation for success." - Rick Newman (http://www.usnews.com/money/blogs/flowchart/2010/01/13/lets-hope-these-4-things-dont-happen) So, for us to recover and for us to continue growing economically as a nation, we must depend on the materialism of our citizens. Is that beneficial to our nation? Should we breed materialistic people (http://beatingdebt.ning.com/video/consumerism-the-musical)? Should we sacrifice many of our citizens to financial strife in order for only a few within the economy to experience growth? We should brainstorm a new economic system (http://beatingdebt.ning.com/video/debt-leads-to-a-false-outlook) that does not require debt and materialistic tendencies of our citizens in order for it to grow. It should not depend on the baser aspects of our society, but rather on more productive and more rational aspects of our society. Until we figure out that new economic system, we should stand up to those who are trying to convince us to take on more debt and to be more materialistic. We should not sacrifice our freedom for the good of the economy (http://blog.beatingdebt.org/2009/02/24/giving-up-our-freedom-for-the-good-of-the-economy/). BeatingDebt.org –Convincing People To Stay Away From Debt– | 1/29/10 | Free | View In iTunes |
| Total: 10 Episodes |
- Free
- Category: Non-Profit
- Language: English
- © Creative Commons License 2010 - BeatingDebt.org
