The NYT yesterday reported that a number of Christians with problems getting a handle on their spending were turning to support from their local churches.  Although the article seems to report on this as a new development, which would fit into the story arc of the past few months of sub-prime lending and financial distress, faith-based budgeting has been around a long time.  The article mentions one such program, developed by Crown Ministries, but that program has been around for quite awhile.  I first heard of friends involved with that program almost ten years ago.  My friends had J.D.s and MBAs and found a lot of value in the program, although the article suggests that the programs are good for lower and middle incomes.  At least with the Crown Ministries program, part of the value is in instilling discipline -- making a detailed budget and inventory, writing down all purchases, and even committing not to miss a weekly session of the lengthy program.

One aspect of these programs that is different from professional credit services (besides fees, etc.) is the emphasis on tithing, which the NYT reporter seemed to say was misguided because those funds could pay down debt sooner.  However, the reporter fails to understand that having a goal of tithing more can be a motivator to pay off credit cards.  As one interviewee noted, she had begun to think of a large credit card balance as "just the way of life."  Paying off credit cards to have a good credit report may be too abstract, and paying off balances in order to afford something else, even something more permanent like a car or house may seem like part of a cycle.  The financial burden of the extra interest payment may not resonate with spenders not particularly well-versed in financial literacy.  However, being given a spiritual goal may be motivating to some.

Granted, these programs may be gaining in popularity as credit card debt goes on the rise;still, I thought it odd that these programs were described as new oddities by the NYT.

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