Visa, Mastercard, and Slavery

Visa, MasterCard, and Slavery
By Mark Bates

Proverbs 22:7 says, “The rich rule over the poor, and the borrower is servant to the lender.”

As Americans, one of our greatest cultural values is freedom. Yet, through our spending, we are finding new ways to put ourselves in slavery. US household debt now stands over $10 trillion. Around $740 billion of U.S. household debt outstanding is owed on credit cards -- more than the gross domestic product of Ireland, Sweden and Norway combined. The average American spends 18% of his disposable income on debt service alone.

One of the problems with debt is that it hides the true cost of a purchase. That new computer you bought for $2000 and put it on your credit card actually costs you $2200 if it takes you 2 years to pay it off. The new car you bought for $25,000 actually costs you $31,000 over five years (assuming 10% interest on both purchases).

Even though we are in one of the most prosperous times in our nation’s history, the problem of debt is getting worse. In 1960, the total debt carried by the average household was 60% of its in come. In 1980, that jumped to 75%. By the end of 1995, it was 95%. Today, it is 115% of disposable income.

Being able to buy things you currently cannot afford is a great privilege. However, sooner or later, the bills become due and those 24 easy payments combine with other 24 easy payments become quite a burden. The debt, which seemed so attractive and liberating at the time of purchase becomes a tyrant. As a tyrant, it rules every area of your life, not just your money.
In one study of a group of middle and upper-middle class workers, 68% of the people said that they would like to work less, but could not afford to. When asked why they could not afford to work less, most of them said it was because of the tremendous amount of debt they carried. In other words, we have bought our way into slavery. Just like Proverbs says, “The rich rule over the poor, and the borrower is servant to the lender.”

Interestingly, the Bible never forbids getting into debt. It simply warns about the dangers of debt. Getting into debt in and of itself is not sin and that is because debt is not always foolish. Take buying a house, for example. You have to live somewhere. No matter what happens to you, you will always need a roof over your head. So, you can either pay to rent or pay to buy. Either way, you are obligated to pay. Also, investing in a college education or even transportation may be a wise thing to do. However, we don’t always need to spend as much as we do. Yes, you need a car, but do you need to go into debt for a luxury vehicle? Yes, you need a place to live, but do you need a $300,000 house when you know it will put a strain on your finances?

For some, the problem of debt is simply a matter of poor financial management. Most people do not have an accurate picture of their finances, of the amount of debt they are in, or of even where their money goes. University of Maryland economist, Larry Ausubel discovered that people greatly underestimate the amount of debt they hold on their credit cards.
By not keeping track of spending, by failing to form a budget and then follow it, we end up frittering away thousands of dollars a year on little stuff. All those little trips to Wal-Mart, Target, and the mall add up to huge sums of money that seems to disappear without a trace.
Exercising self-control, creating and sticking to a balanced budget, and tracking your spending are essential elements to gaining control of your finances. However, all of that still leaves the root of the problem untouched. If you really want to escape the slavery of debt, then you need to find contentment.

It is a known fact that people will spend more at the grocery store when they are hungry than when they are full. Therein lies a clue to our spending problem. The key to conquering consumerism and debt is not merely self-control, but to become people whose appetites are already fully satisfied.

Tim Keller says that the reason we run ourselves ragged and spend ourselves into oblivion is because we are terrified that we might miss out on something. People are afraid they are going to miss out on a great family, or great travel. They want physical beauty. They want warmth and love. They want terrific food. They want all the great experiences. You watch lifestyles of the rich and famous and you think, “I don’t want to miss out on all that they do.” It is like the old beer commercial, “You only go around once in life. So, grab for all the gusto you can get.” Go for the gusto. Live a frantic life or you will miss out.

The Christian, though, should see the folly in this. If you are in Christ, then you know that ultimately you will miss out on nothing. The Apostle Peter reminds us that we have a rich inheritance awaiting us—one that will not spoil, fade, or perish (1 Peter 1:3-9) Therefore, relax. Be content. You can even give your money away with joy.

Every pleasure we enjoy in this life, whether it is a great vacation, romantic intimacy, a great meal, a beautiful work of art, or whatever the physical pleasure we enjoy, is like drinking from a thimble compared the incredible pleasure we will have in Christ. C. S. Lewis, in his sermon, The Weight of Glory, says that even these physical pleasures are so strong that even they are too much for our present management, even filtered, faint, and far-off, but what would it be like to taste at the fountainhead, that stream of which even these lower reaches prove so intoxicating. Yet, that is what lies ahead.”