Debt... and loving it
Americans are struggling.
Several weeks ago, Peter Schiff asked, “if the economy is so strong, why are Americans so indebted, cash-poor, and desperate?”
From a bird’s-eye view, this answer seems obvious.
For years, Americans have been accelerating their debt.
The middle class, burdened by a crushing storm of lockdowns, inflation, and poor policies, has reached a breaking point.
It’s one thing to use debt to earn rewards, obtain an education, or start a business. It’s another to use it like cash to fund living expenses (i.e., gas or groceries).
I know this personally. One of my close family members frequently used their credit cards. But eventually, the pressure of mounting medical bills forced them to crack.
The key point is that too many Americans are funding their lifestyles with debt.
To Pay or Not to Pay?
The U.S. economy is massive. Many conditions influence Schiff’s question. But Americans are feeling pain now, despite being in a “good economy,” because the weight of their spending has finally caught up with them.
A quick scan online shows just how serious this is:
28% of credit card debt holders said day-to-day expenses, like groceries, were the largest reason they carried their balances month to month…
Households likely depleted their excess savings from the pandemic by the first quarter of 2024…
People are turning to drastic measures to reduce debt, even “borrowing against their home or their 401(k)” to reduce debt.
Throughout my research, I’ve noticed references to the 2008 financial crisis.
At some point, the bubble will burst.
What’s the solution?
2025 is a great time to reassess your spending. Even if the U.S. is entering a Golden Age, we need God’s wisdom to steward our possessions.
Think about Joseph and Egypt. God gave them seven years to store up resources. This prophetic insight saved a large portion of humanity.
We don’t know what tomorrow will bring. Get alone with God. Ask Him: “How do You want me to steward my possessions in 2025?”
Don’t miss our live meeting this afternoon
We’re meeting live today at 3:30 PM (CA time). Bring in your questions. I’ll see you then!
God bless your Prosperous Soul,
Stephen K. De Silva
About: Stephen K. De Silva is an author, speaker, and financial mentor. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@prosperoussoul.com