PROPHETIC WORD: THIS IS THE GENERATION OF SIDE HUSTLES
Household Debt Climbs Past $16 Trillion as Inflation Wrecks Family Finances: With inflation running out of control and higher prices squeezing family budgets, more Americans are turning to credit cards to bridge the gap. That’s led to the biggest leap in credit card balances in 20 years.
Household debt is now at its highest level ever, climbing past $16 trillion – a 13% increase in the past year.
Americans are treading water. Roughly, 125 million people are living paycheck to paycheck according to financepond.com. That’s 54% of the U.S. adult population.
So just how bad is it? The collective U.S. household debt is one indicator – totaling $16.15 trillion through the end of June, up $312 billion from the previous quarter. With food and gas prices surging to 40-year highs, the Fed is working to bring down inflation by raising interest rates.
“The Federal Reserve has more work to do to bring inflation down, to bring the economy into balance,” said Neel Kashkari, the President of the Minneapolis Federal Reserve Bank.
Yet, those higher rates mean higher interest on credit cards as the new data shows that American families are using their plastic just to pay the bills.
Danny Kofke, author, and motivational mentor with Mentoro says the numbers indicate so many people need financial wellness. “I think it says we like to spend money,” he said.
Kofke believes that the higher prices are forcing Americans to borrow more money. The problem is that using credit cards only puts consumers deeper in the hole. Per his example: someone who racks up $5,000 on a credit card could pay 1.25% of the balance, with an 18% interest rate.
“By the time you’re done paying off that $5,000 debt, it will cost you over $12,000 and take you over 22 years, not months, to pay it off,” said Kofke.
His example shows how people don’t consider the total cost beyond the minimum payment, which explains why credit card balances just surged by the largest amount in 20 years.
“Debt is so tricky,” Kofke said. “We’ll even go back to Proverbs: ‘The borrower is servant to the lender.’ Solomon wrote that over 2,000 years ago before there were Walmarts, Target, and the only Amazon was a river. And it’s still true today.”
I believe that God wants to bring side streams of revenue to Christians all around the world, just like you and I. I am prophesying that this is the season of the side hustle all around the world; that God wants to give you another stream of income. God is bringing creative strategies to us because God is the God who gives us the ability to produce wealth. Even in the midst of a recession, there are a lot of God opportunities for you. In this season, begin to ask God what is something you can do to produce more and God will begin to give you ideas and inspiration. He wants to give you strategic side hustles that fit who you are. God has made you to be someone who produces resources for everything you are called to do. We see this with Israel over and over, in times of hardship God provided for them even though in the world around them all hell was breaking loose, God still provided for His people and He will make a way for you.
Deuteronomy 8:18: “But remember the Lord your God, for it is He who give you the ability to produce wealth, and so confirms His covenant, which He swore to your ancestors, as it is today.”
Shawn Bolz is a TV host, author, producer and a Christian minister. He has been leading conversations in the church, entertainment industry and in social justice that have helped inspire people around the world. Shawn’s deeply connected yet humorous style of speaking, media hosting and coaching, as well as his ability to help everyday people connect to hearing God’s voice, has brought him around the world to meet with churches, CEOs, entertainers and world leaders. To find out more, listen to Shawn’s full podcast on Prophetic Perspectives with Shawn Bolz.