Moving Forward in the Face of Economic Disaster: Staying Safe Despite the Odds

The last couple of years have been a whirlwind of financial energy... With gas prices going up, thereby forcing prices in everything else to go up, the average person is having a hard time making ends meet. With the economy in such disorder, the facts are hard to ignore. The American people are in trouble. Life is hard now, and future predictions bring even more bad news. With banks going under, and high prices at every turn, hope is a hard thing to find. People are looking for answers. People are looking for someone to blame. Our budget has become weaker, and our debt stronger. I believe, however, that there is hope. I want to take my belief a step further and offer proof. I am going on a financial journey, and I expect my destination will be a lovely oasis of financial freedom. It is exactly times like these that God chooses to work. In the face of financial ruin and economic disaster I am choosing to stand on the principles that God has given. By changing my way of thinking, having faith, and following clear cut instructions in Scripture, I intend see something beautiful arise "from the ashes." I invite you to join me in my adventure.

Estimations have been given that there will be 2 million homes foreclosed on by 2009. This is staggering. I can't even begin to imagine the massive amount of credit card debt we Americans have incurred, and how much of that isn't being paid. From a personal standpoint, I would be more likely to pay my house payment than I would my credit card bill(s). According to creditcards.com the 2007 statistics show an astronomical amount of debt from those credit cards. Almost everything the average American "owns" is through credit. Take a look at these numbers of credit card debt.

1. Bank of America -- $106.03 billion
2. Wells Fargo -- $54.67 billion
3. JP Morgan Chase -- $37.26 billion
4. Wachovia -- $37.16 billion
5. Washington Mutual -- $35.03 billion
6. US Bank -- $23.03 billion
7. Regions Bank -- $15.29 billion
8. Fifth Third Bank -- $12.19 billion
9. USAA Federal -- $12.03 billion
10. RBS Citizens -- $11.51 billion
(Source: creditcards.com from the Nilson Report, April 2008)

These numbers represent American credit card debt. They do not represent mortgage debt. Many of the same banks loan money for credit cards and mortgages, and the outcome has proven disastrous. Just in the past few days Wachovia has been bought out by Citigroup. The Bank of America bought out Merrill Lynch. Washington Mutual was bought out by J.P. Morgan Chase.

Most everyone knows that A.I.G., the biggest mortgage holder in the world, is going under. Fannie Mae and Freddie Mac lead the fray.

Think on the numbers. If in 2007 JP Morgan Chase issued out $37.26 billion of credit card debt, then combined with Washington Mutual's debt of $35.03 billion, that's almost double the amount Chase is groaning under in credit loans. Remember that these numbers are from 2007 and only involve credit cards. The New York Daily News reported that Chase bought Wamu for &1.9 billion dollars, along with its $307 billion of assets. That's a lot of money. That represents a lot of bad choices.

With the economy in such a crunch, and with no concrete evidence of anything getting better anytime soon, how are these banks that have bought out the others going to make it? They're going to get it from us! According to CNN, in fact, it has already begun. Mina Kines reported that a regular guy with a good credit rating and never late on any payments had his interest rate increase on his credit card from 7.99% to 26%. The explanation was due to a "continually changing business environment." (taken from http://money.cnn.com/2008/09/26/news/economy/creditcards_kimes.fortune/index.htm)

Economic hardship is quickly becoming the average man's way of life. My family, like so many others, have been hit, and continue to feel the strain. I am a housewife, and my husband is a brick mason. Work for him has become almost non-existent. I have to admit that this crisis is a little scary. Since the time of our marriage my husband and I have made some seriously deficient financial choices. We have lived far above our means, and now we are paying the price. Even though we are feeling the consequences of that, I have hope. I believe that past mistakes can be overcome. I believe that faith can move mountains.

More than half of Jesus' parables talked about money. There are more than 2350 verses about money throughout the whole Bible. There are at least 365 times in the Bible where we are told not to fear. To put it all together, God knows how to lead us with our money, and we don't need to be afraid. That's the bottom line.

Luke 12:22-31 says, "Then He said to His disciples, "Therefore I say to you, do not worry about your life, what you will eat; nor about the body, what you will put on. Life is more than food, and the body is more than clothing. Consider the ravens, for they neither sow nor reap, which have neither storehouse nor barn; and God feeds them. Of how much more value are you than the birds? And which of you by worrying can add one cubit to his stature? If you then are not able to do the least, why are you anxious for the rest? Consider the lilies, how they grow: they neither toil nor spin; and yet I say to you, even Solomon in all his glory was not arrayed like one of these. If then God so clothes the grass, which today is in the field and tomorrow is thrown into the oven, how much more will He clothe you, O you of little faith?

"And do not seek what you should eat or what you should drink, nor have an anxious mind. For all these things the nations of the world seek after, and your Father knows that you need these things. But seek the kingdom of God, and all these things shall be added to you. "

This is just one scripture of so many that points us in the direction of getting back control of our finances, and essentially our lives. I have started a blog documenting my process, againstthemoneyflow.wordpress.com, and I invite you to join me as I work my way out of debt by using Biblical principles and creative thinking. I am certain that if I can do something to help my family to get on top of our finances during this money crisis, then you can too.