FICO and Big Business Determine Identity

One of my biggest gripes is FICO and credit scoring. I can understand for merchants a need to keep alert for those consumers who are irresponsible with credit and money. This protection is not only for merchants, but for consumers as well. But as anything I must ask, has the idea of credit scoring gone too far and perhaps is there a better way?

On a day when our new president asks all Americans, individuals with names and personal stories, people of differing races and creeds to participate in the governing process and to actively be part of his administration by logging onto his site, it is ironic our identity breaks down to our social security number. No one cares for our name or personal character; they just care about our number. Our identity is reduced to a series of nine numbers, but going forward we will be attaching an additional three numbers-our credit score.

As a nation of automatons with a digit identity, now our character is assessed with an additional three. Are we good with credit cards or not? Have we faced financial difficulty in our past, or do we know how to work the credit and get rich off the credit system? Sadly, those who have lived a modest life, helping others but have had difficulty from time to time rate much lower than those who often live a life of making money for their own self service and greed. Is this how we truly want to rate people’s character, if we should rate them at all? Is this what we really value in citizenry?

We are on way to overcoming racism and prejudice, but is keeping “credit score” just another form of prejudice judged solely on one’s financial history, or even their lack of financial history? Look, people are judged unfairly with the single fact they do not have credit. Is not having credit really a bad thing and should we judge someone for wanting to live their life solely on the money they actually earn? What a concept, people spending money with what they earn and not using credit cards? How dare they? Good, honest people are having difficulty getting a house, job for simply not having a credit card. Sorry, I find that ridiculous.

I personally find the credit scoring system as a big business function to make more money off consumers. If they can continually report low scores they can charge higher and higher interest rates to make money. Do we American consumers want our character and identity to be judged by a corporation? Personally, I have hard time respecting and honoring many CEO’s in big business today and I honestly do not feel they have the credibility to judge me.

Credit Cards - And the Reward Goes To -

Last weekend I did something completely outside my character; I sought the advice of experts. Yes, instead of my mindless, imaginative drivel, I’d actually ask people who truly understood credit. My question to the universe was, “Do credit cards rewards actually work?” The next day, I opened my email to blinding, heavenly, white lights and orgasmic cries, ‘Yes! Yes! Yes!” that bellowed from my computer. I have to admit, my skepticism was called into question. I felt foolish for even doubting.

Jim, a financial blogger for www.bargaining.com used credit cards to pay for his wedding. He and his fiancé spent over $30,000 on credit cards and earned over $1500.00 in credit card rewards, which he called, “free money.” I wasn’t sure whether to congratulate him on his wedding or for the great deal he received from credit card rewards. Another wonderful woman, Dr. Sheilagh Weymouth of http://www.wholelifehealthcare.com/ accumulated her points on her Amex card which she rolled over into her Virgin Atlantic Flying Club. She flew to Africa first class for an economy price. Personally, I have always dreamed of visiting Africa. People are realizing their dreams, using credit cards. Wow, credit card companies do have the power to make dreams come true. Could I have been so wrong?

But as everything good in this world, there is always a hitch and I quickly realized one commonality in all those who responded. They all paid their balance in full with no incurred interest. So indeed, it was “free money.” For them, it is a dream come true, because they have no recurring fees or interest to pay off later. But using your credit card to get rewards when already in debt is like a thank you gift at a wedding reception; a mini bottle of Vodka, package of tissues, stale breath mints wrapped in gauze, package of aspirin and a small tin of antacid. It is a reward you receive, but is quickly lost in interest rates and potential fees.

There is no doubt credit card rewards are a marketing ploy to get consumers to spend more money using their credit cards. CFP, psychotherapist and author of "Complete Idiot's Guide to Getting Out of Debt" (a book I need to read), Ken Clark wrote, “Rewards create a false sense of progress or thriftiness in the midst of purchasing decisions that are generally unwise.” To get more rewards, means more spending on credit, money you do not have to spend otherwise, unless you are one who pays their balance off monthly without incurring interest, like Jim and Sheilagh, then it is indeed free money and a reward for good credit behavior. However the credit card companies are not in business to give away free money, they are in business to make money and they make the most money of the people who spend, already deep in debt. If Americans spend wisely on credit cards, creditors will not make as much money. It is just business.

Norm Bour of the Norm and Mike radio show, http://www.normandmike.com/ and who runs a Business Debt Eliminator, http://www.mortgageacceleratorplus.com/, program suggested these rewards work well for those responsible with credit, but many people abuse credit cards. It is a sentiment I happen to whole heartedly agree, but I feel the lines are not quite so black and white. There is no question, we need to bring fiscal responsibility back to America, but I believe it starts at the top. How can we expect consumers to be fiscally responsible when corporate CEO’s travel in luxury and attend meetings at exclusive resort spas and our government needs to continually borrow and go deeper in debt to foreign nations. What example are they sending to the consumer, it is okay to be exorbitant and spend money you don’t have? I believe the responsibility starts at the top, and all those who believe in trickledown economics should agree. I firmly believe it is the government and corporate CEO’s need to set the example, and American consumers will follow.

In the meantime, it is a lesson to learn from Jim and Sheilagh. Good things come to the fiscally responsible and wise. A lesson, I certainly need to learn.

Our Nation - Mullet Heads Leading the Charge

It was during the CNN’s coverage of the Presidential Inauguration watching 47 year old Barak Obama dance with his 45 year old Wife Michelle at the Youth Ball combined with the admission of one CNN correspondent of their own age that I realized I too have passed the age of youth. For years I was holding fast to the idea I was still thirty. Where did the time go and where did my youth go?

The next morning I woke with the realization that not only am I no longer considered the “youth movement” my generation is in charge. Like oh my god, gag me with a spoon (my best Moon Unit Zappa impression). How did us rebel rousers of the 80’s, with mullet haircuts, earrings and parachute pants come to a place where we are now setting the example for the youth? I’m like freaking out for sure!

I thought about it for a while and perhaps we are the best generation to lead the nation into the future. We were the ones who released Rebel Yells, chanted, “No War, No More!” with Bono before Bono was Bono, and I personally sang along in German (I don't speak German) to Nena’s 99 Luft Balons. We watched our rock idols in Band Aide, Live Aide and Farm Aide. Heck despite our bad taste in hairstyles, fashions and music we wanted to feed the world and were all about the aid, man!

But most significantly, those of us who came age in the 1980’s worried about nuclear holocaust and the arms race between the United States and the Soviet Union. We had a gun-slinging trigger happy president and his merry band of White House aides sold weapons to countries who today pose us the greatest threat. We watched our government care very little for the future of their youth. We took notice and realized the importance of a future. The nuclear race was on and I’m sure I was not the only one during that time who had worried for their future. I prayed along with Sting that the “Russians loved their children too,” and feared Jonathon Schell’s Fate of the Earth, was indeed my fate.

A friend and I often discussed these issues and we asked ourselves would we ever see the fall of Berlin Wall in our life time. Our answer was no. Not more than a few months later, the East Germans left East Germany in droves, peacefully and without a single gunshot or bloodshed. They toppled Communism in their country and set of a reaction in other Eastern Block nations, Romania and Czechoslovakia. Here is the significance, Berlin was the ground zero and the DMZ between East and West and the center of our Armageddon. To see them succeed was a celebration for the entire world. Our generation watched the world change, as in the Jesus Jones’ song “Right Here, Right Now”, in literally a blink of an eye and suddenly the fear of nuclear annihilation were gone and as Peter Jennings reported, “Anything is possible.” I believe this event set the theme to my generation-Anything is possible!

Over the years, the rebel yells turned to whispers and U2 went onto rattle and hum, but I don’t think we ever lost sight of the issues in the world; we just got busy with our own. We still held true to the notion that anything is possible. We have elected our first black president, who like the East Germans in 1989 has changed the world. Today, we Americans sit at the helm of freedom, hope and democracy. It is our turn to change the world, but it is only the beginning.

I for one, have absolutely no doubt change is on the horizon. We have seen the world change. We know it can be done. So I suggest to refrain from blinking, you just might miss something. In conclusion a special shout out to the class of 85.

“Just once in his life, a man has his time and my time is now. I’m coming alive.”

America is coming alive.

Economy Today, It is Good to be Sad

It is hard to talk of sin and especially credit cards when inspired by such a great change in our country, but perhaps this is the perfect time. Today is a time brimming with the promise of hope, yet we still have a lot to overcome. I have talked and even joked of sin and how they correspond with credit cards and money, but it is not so much a sin, but a weakness, or vice. One thing that is true, greatness is rarely inspired by human weakness and if it has, it has left world with demonstrable troubles, i.e. WWII. We have learned that in order for our greatness to truly serve the world, we have to be strong human beings and overcome our own weakness.

Like the other sins of lust and greed, it is often hard to consider sloth a sin when it is human and biological. Sloth is described as depression, melancholy and anxiety. Many of these very symptoms are said to be due to one’s chemical makeup of the brain and cannot be truly be considered a sin. But sloth was designated a sin because in order to be slothful, sad or depressed meant you were without faith. If you had faith, you would believe there is no reason to be sad.

Faith-all you have to do today is look around our world and see violence, famine, disease and we all question faith. It is enough to depress the strongest of hearts. It is so easy to be sad and depressed these days and why so many pharmaceutical companies are making money of other’s emotional distress. I, in no way, subscribe to Scientology that emotional issues are not biological and chemical imbalances, they indeed are, but my challenge is the financial exploitation of those with emotional distress. There is such a strong propaganda in our culture to be happy, when life can be so stressful. Whether the need to medicate or not, a little dose of hope or faith can alleviate the symptoms of sloth.

Frankly speaking, money and debt make me very anxious and promote sometimes bouts of depression and even as far that some others have committed suicide. Which leads me to my introductory paragraph, is depression and anxiety a weakness? I don’t believe so. Overcoming sadness, depression and anxiety is very courageous and a lot is to be learned from a melancholy state.

Today as we regard our economy, many losing their jobs and homes it is sad and frightening, but it is a great opportunity and challenge for greater awareness and growth. Ironically, only in times of despair do we look to change the future. Change simply does not occur in times of happiness and plenty. So today, in regards to our nation and economy there is a lot of worry and sadness, but fear not change is on the way if we have faith and the courage to look forward.

Today's Economy & Personal Sacrfice

Sometimes someone in the media says something that I have to agree. Saturday, watching Obama’s historic train ride from Philadelphia to Washington comments arose calling all Americans to action. We can no longer afford to sit complacent and wait for our government to act. If change is to occur it will take all our efforts. So many times I have heard others complaining about the state of our nation, but we are all to blame. This is not a time for bipartisanship and this is not a time for personal agendas in regards to race, ethnicity, gender, religion or even sexual orientation. All these issues take a back seat and there is a dire need for unity.

These days remind me of a time when Americans were called upon by FDR for duty and sacrifice. Women were called from their home to work in factories to support the efforts in WWII. It was a time when everyone put aside differences for a greater cause-peace. Today, the battle is not a foreign war it is our economy and our life at home.

In regards to personal income and family finances, when down times arise families and individuals make sacrifices. They trim the family budget and cut costs, like going out to eat. As a nation, what sacrifices are we prepared to make? What can we look at in or nation and question our investment? Today what I see is people making a mockery out of frugality and writing samples on how to make money during an economic downturn. Is this responsible? Can we look at many of the superficial frivolities in our culture and say they are needed in times of financial crisis? One thing that came to mind is television and movie bloopers. Bloopers are wasted film, scraps that we spend money and invest efforts turning a profit for entertainment. Can that wasted film be recycled and can those efforts and energies be used elsewhere? That is a silly example, but hopefully you get my point. Do we need the latest gizmos and gadgets? Do we need all those products needed to improve our façade? Can our resources be reinvested to something that benefits all, not just our individual personas?

It is striking to me that even in our need for commercial goods and services, people in our very own country are starving. We don’t have to look to third world countries for poverty. Just a few years ago in visiting New Orleans after Katrina, people were still sitting door steps, homes without doors and windows. Their neighborhood streets littered with rat carcasses. One of my colleagues quoted, “So sad seeing people sitting on front porches waiting to be saved, but no one is coming to help them.” Being there are Americans living in these very conditions, is it fair to be concerned with our own personal issues? What is more important, that we look good and are appealing, or to feed the starving people? Is it more important we have the latest video game or that children receive a proper education? What is more important, we are entertained by bloopers or have a vast improved public transportation system?

As today we celebrate one of my greatest heroes, Martin Luther King and tomorrow we welcome Barak Obama to the White House, I must quote another great American, John F. Kennedy, “Ask not what your country can do for you, but what you can do for your country.” And I ask, “What are we doing for our country today?”

Economic Pundits vs. Kermit the Frog - A Call for Transparency

Every day I follow the headlines and try to decipher individual credit issues to the state of our economy. With that said I must ask to please tell me something I don’t know. It gets very mind numbing having pundits and financial experts regurgitate the same information every day. But in fairness, I think in regards to the media we (viewers of the news) separate into two distinct audiences. One audience likes to be told what is going on, the other audience wants to know and understand what is going on. Personally, I want to understand and I challenge the media to explain it to me, if they can. I get off on intellectual stimulus. I can handle it. I am starving for information.

Action speaks louder than words and words get old very quickly especially if they are saying the same words day in and day out, whether you are an economic pundit, financial self help guru or credit pusher. I can appreciate the fact, no one has answers to today’s problems, but I do want someone to offer challenging insights.

For example, few media outlets have addressed the transparency of our government’s financial bailout. I have only read or heard a call for transparency from the Huffington Post, Bloomsburg, and yes the Daily Show. As an American citizen and consumer, I want to know who is getting bailed out, for how much, what they must do in order to receive the bailout and how much it is going to cost me, the tax payer. It is our tax dollars going to big financial companies that in many cases were exploiting the consumer. I want names and I want numbers. And if it is my tax money, I want a say. I want a voice.

Sadly, what I have found in the media today is that the “fake” news offers more challenging, hardened facts then the “real” news which thrives on entertainment. But as much as reporters broadcast the news, they talk without saying anything, and viewers watch without really listening or understanding. This serves absolutely no purpose and is a waste of time, money and energy. What’s the point of broadcasting the news if it is superfluous?

I guess for me it comes down to the value of all this reporting if nothing new is being said. How are we going to overcome this economic crisis and grow as society if we are not challenging those making the decisions? It comes down to this hard cold fact, big business and the government make deals based on what is good for big business and the government, (not the people). Big business owns the news and filters down to the media like puppet masters what is to be reported. And that be the case, we might as well get our news from Kermit the frog. Jim Henson is a quieter, gentler puppet master.

The problems that face our nation today are far too great to be glossed over with dancing girls and juggling monkeys. I want transparency. I want to know what is really going on and who is going to be held accountable, especially if we’re paying for it. Hey, you wouldn’t invest in a car without knowing how the engine works, but that is what we are doing if we don’t challenge the government, business and the media to tell us.

Seven Sins of Credit Cards - Lust

Lust is a sin? Doggonit! How can something that is biological be a sin? And we’re really going to go to hell for lust? Well imagine this ladies, the guy of your dreams never calls you back after a night of passion, and men what about that beautiful woman who rejected your advances. It may not be hell, but it sure feels like it. Now imagine how you felt after a shopping spree, when you mentally calculated the cost of all your purchases, that feeling should be a frickin’ sin.

In today’s world lust is not considered a sin, it is celebrated. In fact, being modest and chaste is sinful. All we have to do is go online, turn on our televisions, or go to the grocery store. We are compounded with sex daily and the interest collected is slightly different then the interest collected by creditors, and I’m not sure which “interest” is more risky. So with sex sold to us every day, you can imagine how hard it is to resist. Ladies and gentlemen, we have come a long way-baby!

And more so, lust is big business. The porn industry grosses over a billion dollars a year. That’s a lot of lust and most of it is paid for on consumer credit cards-or in the form of cash in dark, dirty strip clubs. But most winds up on our credit card bill (I don’t know, that’s just what they tell me). It is a charge we don’t tell our spouses, lovers or even our creditors. Visa need not know. But then we can thank Visa for the opportunity to be lustful, and that’s Priceless.

Ironically, only a few hours after writing this post I caught a “news” headline on the AC360 show. Thanks Anderson Cooper for the enticing inspiration to add to my blog. Larry Flint and the porn industry are requesting a five billion dollar bail out from the government. Ooh baby, I can roll around naked in dirty laundry all day long. Apparently sex sales are on the downslide because people are depressed. Bummers dude! So I guess there is a possibility sex can be nationalized, but if tax payers are going to flip the bill for porn then I think the government should ensure every American has sex. Hey, it’s only fair. It’s our tax money at work; let’s make sure it works of us. It’s like paying for an expensive date and not getting lucky.

Even if we’re not purchasing porn, there are many companies out there to solicit lust accessories, Viagra for example. Curiously, if you have difficulty getting it up how lustful can you actually be? Thankfully, there are companies to help increase your lust if you are without. Pfizer, the company that makes Viagra takes in nearly one billion a year. That’s not including all the Viagra wannabes. I would like to keep this blog a readable length, so I won’t even go into how much we spend on birth control.

But it’s not just porn and other sex accessories that we spend massive amounts of money, sometimes it is intensely personal. Guys, how many times have you had a “thing” for a chick and you spent a great deal of money to obtain her. Ladies, to what financial extent have you gone through to be sexually attractive to a man? It all costs money and most of this biological game of mating is bought with credit cards.

Let’s face it, there is nothing wrong with lust itself, it is what you do with it. If you’re maxing out your credit on porn sites, charging up your cards to get a “charge”, or just spending money you don’t have to impress the person you find incredibly hot, well it may not be sinful, it’s just sad. Unfortunately, some can’t find lust in life, or lust with those who truly love them. If we have to go over the top to satisfy lust, maybe it’s fitting to pay with “fake” plastic money. But the really sad reality is, as many have difficulty overcoming the devastating affects of a venereal disease; imagine the devastating affects of being massively in financial debt. Imagine collecting all that interest on your credit report and going into debt for a few minutes of pleasure. Is it really worth it?

And lastly, I have to end on a scientific note. Researchers in studying the brain and the functions of arousal found when arousal was increased, the area of the brain that functions as reason and judgment decreased. To give it to you straight-when lust increases, judgment decreases. Reason suggests that if sex wasn’t thrust in our face (ha, ha) everyday, how much money could individuals, heck our nation save? The answer to our national deficit may be in our pants.

Greed is Good

My previous blog was in response to a Motley Fool Article that quoted Warren Buffet, “Be fearful when people are greedy, be greedy when people are fearful.” It is Warren Buffet’s suggestion this is a good time to invest in the stock market. I commented in the article, although this sounds like good advice, my concern is when do we cross the line between greed is good, and greed becomes bad?

Michael Douglas’ character Gordon Gecco quoted, “Greed is Good.” Yes, greed can be good. It is what makes people and society prosper. Greed produces ingenuity and industrialism. One can be greedy for knowledge and life, but greed can also destroy. One such example; over a century ago Pennsylvania Textile Barons including Andrew Carnegie and Andrew Mellon built a hunting lodge in the hills of Johnstown, Pennsylvania for their pleasure. In doing so, they raised a lake reservoir supported by a shoddy dam. While not maintaining the dam with the increased water level in the reservoir they used for swimming and paddling around, the dam broke and flooded the city of Johnstown, killing over two thousand people. Some say it was their selfishness and greed that caused the Johnstown floods.

It was a merry band of financiers, called the “Robber Barons” responsible for the stock market crash of 1929. These men are well known today, as they still are represented by banks and investment brokers, J.P Morgan and Rockefeller. Their greed and corruption thrust America into the Great Depression. And for those who don’t realize how depressing, I urge you to read John Steinbeck’s, “The Grapes of Wrath.”

One current event I would like to mention is the recent suicide of German Billionaire, Adolf Merckle. His company has lost over a billion dollars in the global financial meltdown and this drove him to suicide. The kicker to this story is Merckle was a multi-billionaire, one of the ten richest men in the world. He still had billions of dollars after his financial loss, and to make it more ridiculous a couple days later, the German banks bailed out his company. The point of this story, Adolf Merckle valued money more than life itself. Even though he was still stinking rich, he could not handle the loss of what he found most precious-money. This is indeed very sad.

Getting back to my point in my original post, these financial wizards are looked upon to many as American heroes and icons in which someday the average Joe can achieve massive amounts of wealth. History and current events tell us, excess greed and desire for extreme wealth is irresponsible for the good of the nation. Although being rich is the American way, I honestly must question the patriotism of any man or woman who desires to make money for their own personal gain and the exploitation of others. And personally, I have to question all these “Financial masterminds,” who continue to drive our economy into the ground. Should we Americans trust a greedy financial tycoon to run our economy for these men are out for their own good, not ours? We can easily take Warren Buffet’s advice, and for a time investors will be on their best behavior but how do we prevent history from repeating itself as it already has?

It Was Once A Wonderful Life

There are many articles and blogs written about credit cards; maintaining credit scores, reducing debt and spending wisely. All this is said with much warning, as failure to do so will cause one to lose an opportunity to buy a house, car, or even a job. If we don’t carry credit cards we can’t travel and we can’t shop online. Without credit cards we are poor souls without identity. We are almost being terrorized into having a credit card in order to be functioning citizens. So the question I ask, what was it like before credit cards? Surely there was a time when Americans didn’t live off credit.

My grandparents lived a very a good life. My grandfather was a state policeman and my grandmother was a home maker. They had a nice house in the small town of Hollsopple, Pennsylvania. They had two sons, my dad who I like to refer to as, “The Beaver,” and of course my uncle, “Wally.” They even had a rascally, trouble-making cousin, “Eddie.” They were never without food on the table, toys, bikes or sporting equipment. Even my grandfather invested in his favorite toy-trains. My dad and my uncle went to good colleges and went onto to be successful men. All of this was achieved on a policeman’s salary and with minimal credit. Maybe they took out a loan at Sears for a new refrigerator, but that was it. It was a wonderful life.

While thinking back to my grandparent’s time, I was reminded of the movie, “It’s a wonderful life,” which I watch every Christmas. The main premise of the move, Jimmy Stewart saves his family’s struggling small time savings and loan that grants mortgages to the poor working class; workers threatened by the big corporate bank. Sounds so familiar doesn’t it? It is life imitating art. But where is our Jimmy Stewart today and where is our wonderful life? And most importantly, can we have a wonderful life without credit cards? Some say we can.

I happen to know people who do not hold one credit card, and yes they have a house, a car and even a job. They are the happiest people I know. Living without credit and debt is something this girl dares to dream. I guess this all depends on what is one’s version of a “wonderful life.” Yes today we have more stuff. We have the ability to travel and to be fancier folks. But does “stuff” make life more wonderful? We are encouraged to spend on everything our little heart’s desire, but what is the true price?

As for Jimmy Stewart’s character in “It’s a Wonderful Life,” in the end he was crowned the “richest” man in town. Were his riches financial or were they the love and admiration of his community?

Seven Sins of Credit Cards - Greed

Being somewhat of a cable junkie, I became hooked on the History Channel’s series of the Seven Deadly Sins; lust, envy, gluttony, sloth, greed, wrath and pride. And as I have been following our country’s economic situation, especially in regards to credit cards and credit card companies I found a strong correlation between these “sins” and today’s financial quagmire. I am by no means the most religious person, but man, are we sinners. I can’t say for sure we’re going to hell, but I do know we are making our lives miserable. So while many are divulging remedies to cure the financial symptoms, I believe we need to cure the disease (root causes). These sins are so human and traits are found in every one of us, however it is the excess of these sins that cause problems. So, I decided for the next seven Monday’s I will address a specific sin and it’s correlation to credit.

When Ancient Rome invaded a territory, they charged that territory for the invasion and imposed a tax on the people of that territory and then sent out tax collectors who over-charged citizens to make extra money for themselves. But that is ancient times right, but not so fast. Credit card companies charge you an annual and sometimes monthly fee for membership, charge you interest on every purchase you make and sometimes charge fees; late payment, over the limit, and a pay by phone fee. But that’s not all. They will charge interest on all those fees. It is called, “Compounded Interest.” This practice is not much different than the exploitation of the Romans. Greed and massive debts was a major contributor to the fall of Rome. It makes you wonder, since we are guilty of similar behaviors are we doomed for a downfall, if it isn’t happening already?

With these exploitations, credit regulation is often thwarted because credit corporations support many political careers. Ah, money and politics; can’t have one without the other. This is called corruption. And now many articles are relaying stories of Credit Card Companies financing universities with the promise they can sell credit cards to students.

“For what is a man profited, if he shall gain the whole world, and lose his own soul?” was questioned in Matthew 16-26 in the Kings James version of the bible. The one thing I found most telling is articles and blogs written about how to make money in a credit crisis. How do we make more money, get richer while others in our nation are suffering through unemployment, loss of wages and sometimes worse?

I have a very dear friend who is a fan of the book, “The Secret.” Her goal in life is to attain wealth. In telling this to her son in law he profoundly asked, "Who are you going to take the wealth from? One cannot gain wealth without acquiring it from someone else.” It is true. So when people are promoting methods to make money in a financial crisis, we have to ask from whom are they taking away money.

“Working the credit system,” is one method some have devised to make money off credit card companies. So while some are getting rich off of credit card companies, credit card companies are losing money. Credit companies do not make money off the people who pay their credit card off every month. There is no interest incurred, so no money is made. Credit card companies make money on those who don’t pay off their debt every month. Interest is their profit. Truth is credit card companies WANT consumers to carry debt. It is how they make money.

But regardless of what side of the credit chain you’re on the “Working the System” side or the debt carrying side, greed is in play. Working the system folks are trying to make more money. The debt carrying side is spending over their means for product they do not need or sometimes even want. They are living and spending on “want”, or greed.

We all want money and strive for a comfortable, secure life. The challenge becomes when the lust for money becomes unquenchable, and at the expense of others. They question we must ask ourselves is, do we care of others in society? Do we believe in a fair and balanced society? Are we truly open to the spectacle we created in our obsession for wealth and materialism? And after we obsess hours, days and years making money and we acquire mass amounts of wealth, what happens in the end? As we see our greed destroying our society, is it worth it?

Credit Card Resolutions -Take a lesson from the Amish

Serious problems face our nation today and I sometimes have taken either a rather hard line or even dared make a joke. Hard line or joke, there is no good way to address the issues sooner or later we all must face.

I read all the articles and blogs written about credit cards, so when I came across one written about the Amish and credit cards, I immediately looked to poke fun. Hey, I can do it. I was born and raised in Amish country. But then I started to read the article and realized there is something the Amish can teach us “English”.

Yes, Amish use credit cards for business and personal use and they do so without tampering with the quality of their beliefs and their lives. For example, The Amish don’t use electricity to process credit card purchases, yet they are more efficient using solar or wind panels to generate their credit machines. Wow, can it be? The Amish are more progressive then the English by using “Green” technology to process charges.

As consumers with credit, the Amish use for only large purchases they cannot afford to pay with cash. They make their purchase and then pay down until paid off. They do not use credit cards for small purchases such as buttons for their modest attire. For many “English” credit cards spending can be obsessive. We are tempted and lured by advertisements and marketing.

The main thing we can learn from the Amish is to appreciate the simplicity of life. Do we really need all the things we spend money. And then I realized the Amish could help us with financial New Year’s Resolutions.

1. Live simply, not “Live Richly.” Spend within our means
2. Use cash, and only spend on credit when needed.
3. Spend money wisely. Pay off large purchases, before buying another.
4. Invest in yourself.
5. Share with neighbors and friends.

Sometimes it seems the problems are so extreme. We need to read books, listen to pundits for cures to our financial woes. Perhaps our problems are just this simple. I guarantee, if you moderate use of credit cards, spend within your means and start paying down debt (more than the minimum due) not only will you find yourself without debt, you will be happier because you have found a greater value of life.