Nothing New Under the Sun

That which hath been is now; and that which is to be hath already been
--Eccl. 3:15

"If the people known as Latterday Saints had listened to the advice given from this stand by my predecessor, under the inspiration of the Lord, calling and urging upon the Latter-day Saints not to run in debt, this great depression would have hurt the Latter-day Saints very little. . . . To my mind, the main reason for the depression in the United States as a whole, is the bondage of debt and the spirit of speculation among the people."
--Heber J. Grant (in 1932), Teachings of the Presidents of the Church, Heber J. Grant


"Now, brethren, I want to make it very clear that I am not prophesying, that I am not predicting years of famine in the future. But I am suggesting that the time has come to get our houses in order.
So many of our people are living on the very edge of their incomes. In fact, some are living on borrowings.
We have witnessed in recent weeks wide and fearsome swings in the markets of the world. The economy is a fragile thing. A stumble in the economy in Jakarta or Moscow can immediately affect the entire world. It can eventually reach down to each of us as individuals. There is a portent of stormy weather ahead to which we had better give heed.
I hope with all my heart that we shall never slip into a depression. I am a child of the Great Depression of the thirties. I finished the university in 1932, when unemployment in this area exceeded 33 percent.
My father was then president of the largest stake in the Church in this valley. It was before our present welfare program was established. He walked the floor worrying about his people. He and his associates established a great wood-chopping project designed to keep the home furnaces and stoves going and the people warm in the winter. They had no money with which to buy coal. Men who had been affluent were among those who chopped wood.
I repeat, I hope we will never again see such a depression. But I am troubled by the huge consumer installment debt which hangs over the people of the nation, including our own people. In March 1997 that debt totaled $1.2 trillion, which represented a 7 percent increase over the previous year.
In December of 1997, 55 to 60 million households in the United States carried credit card balances. These balances averaged more than $7,000 and cost $1,000 per year in interest and fees. Consumer debt as a percentage of disposable income rose from 16.3 percent in 1993 to 19.3 percent in 1996.
Everyone knows that every dollar borrowed carries with it the penalty of paying interest. When money cannot be repaid, then bankruptcy follows. There were 1,350,118 bankruptcies in the United States last year. This represented a 50 percent increase from 1992. In the second quarter of this year, nearly 362,000 persons filed for bankruptcy, a record number for a three-month period.
We are beguiled by seductive advertising. Television carries the enticing invitation to borrow up to 125 percent of the value of one’s home. But no mention is made of interest.
President J. Reuben Clark Jr., in the April 1938 general conference, said from this pulpit: “Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you” (in Conference Report, Apr. 1938, 103).
I recognize that it may be necessary to borrow to get a home, of course. But let us buy a home that we can afford and thus ease the payments which will constantly hang over our heads without mercy or respite for as long as 30 years."
--Gordon B. Hinckley (in 1998), To the Boys and to the Men.

"Many years ago, on an assignment to the beautiful islands of Tonga, I was privileged to visit our Church school, the Liahona High School, where our youth are taught by teachers with a common bond of faith—providing training for the mind and preparation for life. On that occasion, entering one classroom, I noticed the rapt attention the children gave their native instructor. His textbook and theirs lay closed upon the desks. In his hand he held a strange-appearing fishing lure fashioned from a round stone and large seashells. This, I learned, was a maka-feke, an octopus lure. In Tonga, octopus meat is a delicacy.
The teacher explained that Tongan fishermen glide over a reef, paddling their outrigger canoes with one hand and dangling the maka-feke over the side with the other. An octopus dashes out from its rocky lair and seizes the lure, mistaking it for a much-desired meal. So tenacious is the grasp of the octopus and so firm is its instinct not to relinquish the precious prize that fishermen can flip it right into the canoe.
It was an easy transition for the teacher to point out to the eager and wide-eyed youth that the evil one—even Satan—has fashioned so-called maka-fekes with which to ensnare unsuspecting persons and take possession of their destinies.
Today we are surrounded by the maka-fekes which the evil one dangles before us and with which he attempts to entice us and then to ensnare us. Once grasped, such maka-fekes are ever so difficult—and sometimes nearly impossible—to relinquish. To be safe, we must recognize them for what they are and then be unwavering in our determination to avoid them. . . .
The final maka-feke I wish to mention today is one which can crush our self-esteem, ruin relationships, and leave us in desperate circumstances. It is the maka-feke of excessive debt. It is a human tendency to want the things which will give us prominence and prestige. We live in a time when borrowing is easy. We can purchase almost anything we could ever want just by using a credit card or obtaining a loan. Extremely popular are home equity loans, where one can borrow an amount of money equal to the equity he has in his home. What we may not realize is that a home equity loan is equivalent to a second mortgage. The day of reckoning will come if we have continually lived beyond our means.
My brothers and sisters, avoid the philosophy that yesterday’s luxuries have become today’s necessities. They aren’t necessities unless we make them so. Many enter into long-term debt only to find that changes occur: people become ill or incapacitated, companies fail or downsize, jobs are lost, natural disasters befall us. For many reasons, payments on large amounts of debt can no longer be made. Our debt becomes as a Damocles sword hanging over our heads and threatening to destroy us.
I urge you to live within your means. One cannot spend more than one earns and remain solvent. I promise you that you will then be happier than you would be if you were constantly worrying about how to make the next payment on nonessential debt. In the Doctrine and Covenants we read: “Pay the debt thou hast contracted. … Release thyself from bondage.”
--Thomas S. Monson (2006), True to the Faith, emphasis added