In the most recent issue of Money Matters, a Crown Financial Ministries publication, Larry Burkett (founder and Chairman of the Board), discussed this problem. Since I greatly respect Larry and the ministry I would like to take "editorial privilege" with his article and use it to relay to you what he has to say about this issue.
During most recessions, history shows that we generally pay down debt. It is apparent that we are not doing that this time around. Larry says that the recession started six months ago and we have continued to increase our new debt as families. This simply is unhealthy.
The article goes on to state that we all got lured into zero-percent financing on cars and "no payments for a year" deals on other items like furniture, home improvements through the major retailers, etc. In spite of all this, and even with September 11, the average debt per family still appears manageable for most of us.
However, when will the hammer drop? All that has to happen is for rates to trend upward and many people will simply be "toast." Higher rates mean higher credit card payments, variable rate mortgages will have higher payments and other financing sources that have floating rates will add to the strain on our household finances. Now don't panic, but rates could start back up as early as June or July of 2002!
Here's the real travesty. The credit card companies seem to be pushing harder than ever to get me (and you) to put in my pocket a new, more "advanced" product with gimmicks to go with it (temporary lower rates or whatever). Larry's article states that credit card companies mailed out more than five billion solicitations in 2001 which equates to about 20 solicitations for every adult and child in the United States. I've counted and have received as many as four in one day and up to thirteen in one week!!
Throw them in the trash can-do not even open the envelope!! It will only get you in trouble.
Pay your credit cards off every month. If you cannot do that, you don't need the credit card.
If you need help restructuring your credit card debt or your financial situation needs attention, I encourage you to call Crown Financial Ministries, with their worldwide headquarters here in Gainesville, Georgia. They will assist you in learning how to handle money from a biblical perspective. It's a neat way to pay off debt and manage your finances.
http://accesswdun.com/article/2002/6/193926