From: cctr114@cantua.canterbury.ac.nz (Bill Rea)
Newsgroups: soc.religion.christian
Subject: Re: Economics
Date: 9 Oct 92 08:46:35 GMT
Organization: University of Canterbury, Christchurch, New Zealand.

[snip]
>Re: Larry Burkett's insisting that basically, if you don't
>have the money now, you shouldn't borrow the money unless you can get it given
>to you (as in: NO Interest).  
[snip]
>Mr. Burkett's concepts have to apply to folks who are struggling and live from
>paycheck to paycheck.  It is the rare person who has enough financial responsi-
>bility to take care of bills each month in full or without pushing the limits
>on financial margin for emergencies.  
[snip]

I've read Mr. Burkett's book ``The Coming Economic Earthquake''. There are
two aspects to his book, 90%+ of the book he deals with why he thinks that
an economic depression is inevitable with lots of sad tales of people who got
themselves into trouble by going into debt. The tiny remainder  of the
book covers what we ought to do to be prepared for a depression. The book
could really upset people and give them nightmares. The basic problem is
an unwillingness to live within our means at both an individual and
collective level. I found his advice on preparation very tame considering
the magnitude of the problems he forecasts. If I were forecasting the
problems he was, I would advise people to buy some land, build a fortress,
stock up on firearms and ammo, and lay in a good supply of food and water.
But he thinks this is rather unchristian, and I guess he's right on that
one.

One thing we need to decide for ourselves is what should be the Christian
attitude to debt. I have not read Mr. Burkett's ``Debt Free Living''
book but some years ago I attended a ``Financial Freedom'' seminar at our
church which advocated the same thing. I agree with those who say that
our aim should be to live without debt. It seems to me to be in line
with the Biblical teaching on the subject. One of the benefits which
I have experienced in living debt free is that I am no longer concerned
about being able to service my debts, because I don't have any. I come
from a family of 6 children and each of the others have chosen to live
by debt. Four of the other five children in my family have had serious
worries about their financial situation at some stage of their life, loosing
sleep over it, and experiencing marriage problems as well. To me the emotional
problems associated with living by debt is a high price to pay when the debt
could be either eliminated altogether or greatly reduced. It comes down
to a choice of lifestyle. We can acquire material goods and comforts using
debt and pay for it financially and emotionally or we could live in a more
frugal manner with the contentment that comes from knowing the you are no
man's debtor.

The main place I disagree with people say we should never have any debt
is in the purchase of a house or the initial starting of a business.
The people who took the financial freedom seminar I attended maintained
that the ideal was to buy your family house without resorting to a 
mortgage. Looking over all the things I have taken on debt for, the only
things I would say it was essential was to buy our farm and later to buy
our house. Everything else could have waited. Most people have to either
pay rent or a mortgage to live somewhere. It is better to pay a mortgage 
than rent in my opinion.

I know many people who live from pay to pay, but if you can find out what
their situation actually is, many times it is their debts that force them
to live like this. If a family makes a decision to get out of debt, 
particularly consumer debt, then they must take a lower standard of
living for a period of time (often years). Once the change over period
is completed, they will find that they can live better than before and
with far less emotional strain. I agree with Mr. Burkett, and others who
say that continuously living by debt is financially irresponsible. Most
people don't have to live that way, it is a choice they make initially
but then they become trapped by the debt they have.

>-- 
>Kershner Wyatt
>
-- 
                                                                     ___
Bill Rea                                                            (o o)
-------------------------------------------------------------------w--U--w---
| Bill Rea, Computer Services Centre, | E-Mail   b.rea@csc.canterbury.ac.nz |