'You have to make the hard decision'

Even though the Christmas season has just wrapped up, Eric Swanson is urging consumers to start thinking about Christmas 2009.

Swanson, executive director and founder of BeatingDebt.org and a captain in the Marine Corps, believes people should be free to enjoy their marriages, families and God without the struggle of debt.

"Buy your stuff, just don't go into debt," he said. "I can't be spending money on my desires and wants when my needs have to take precedence."

In 2004, Swanson and his wife were $88,400 in debt, which included car loans, credit cards and education loans, he said. By diligently saving and cutting back on expenses, the Swansons were able to declare themselves debt free in December 2007.

"You've just got to determine your priorities," he said. "If you're really determined to be debt free, your quality of life has to go down. You have to make the hard decision."

The backbone of Swanson's company is the belief that debt makes people slaves and "The rich rule over the poor, and the borrower is servant to the lender," as stated in one of Swanson's favorite scriptures: Proverbs 22:7.

A large part of Swanson's message is that people should plan for their financial future.

"People should be thinking, ‘I know Christmas 2009 is going to come ... What I can do today to prepare for that?'" he said. "People are still going to be paying for Christmas 2008 in six months."

On Black Friday in November, Swanson stood on Western Boulevard holding a sign that read, "Debt does not lead to happiness," in an effort to discourage consumers from going into debt by overspending during day-after-Thanksgiving sales.

"Try to hold back. Do you really have to buy a gift or can you just give a gift out of your heart?" he asked. "Your family will understand - they will love you just as much."

Swanson said Americans spend $450 billion on Christmas gifts each year.

"If all of us could reduce our spending ... we could achieve water for everyone in the human race," he said.

 And the nation as a whole has $4 trillion in consumer debt, Swanson said.

"Let's stop the cycle of debt and let's start planning," he said. "There's so much powerful stuff out there that's pushing us to take on debt."

Part of the issue is the consumer mindset. Another part is the American ideal, Swanson said.

"The American dream is just that, it's a dream," he said. "We have to change our idea of who we are and who we want to be."

Tackling and eliminating credit card debt is a difficult, but crucial, part of financial freedom.

"We've got a huge problem and it's brought about by marketing and credit card companies," he said. "You are a slave to the creditors that own you."

Swanson said the road to a debt-free lifestyle is difficult but worthwhile.

 "The lifestyle we lead, we think we deserve a lot and we don't make the money like the rich and famous, but we like to live like the rich and famous," he said.

While the road to freedom may be long and sacrifices will have to be made, the means are worth the end, he said.

"Reducing debt is a marathon - it's not a 100-meter dash," Swanson said. "At the end of the race do you want to win or do you want debt to beat you?"

Treating family finances like a business is a good way to face problems and find a way to solve them, he said. Just like a business has a spending plan, emergency funds and financial goals for the future, so should families.

Swanson hosts a weekly meeting group, Keeping Pace, to help those on the road to becoming debt free. Three couples currently attend the group, where they discuss aspects of their finances and are held accountable for their weekly spending decisions.

"We're trying to balance helping people with the alternative voice," he said.

Joe Landgraf and his wife are members of the accountability group, and Landgraf said the meetings have proved helpful.

"Since I returned (from deployment) this summer I've kind of gotten on board with it and definitely see the magic, if you will, of how this whole thing works," he said. "Just like a marathon, becoming debt free isn't something that happens overnight."

Landgraf said the group helps keep him and his spouse in check.

"It definitely helps to have an accountability group ... because you know you have to go into the group each Sunday evening and you have to fess up to how your week went," he said.

The group is open to new members and meets for about an hour every Sunday at Enon Baptist Chapel in Jacksonville, and Swanson said now is the time to take a close look at your finances since the economy is affecting everyone, especially those in debt.

"Right now everyone is starting to feel it but it's been going on for a long time - this whole consumerism-equals-happiness mindset," Swanson said. "Look at other countries who have less and are happy."

Swanson said he hopes his organization will become one of consumer advocacy and serve as an alternate voice to the marketers and retailers while helping people discover how they can lead a debt-free lifestyle.

"We're trying to get out there and be that alternate voice to that marketing voice that is just ‘Buy, buy now'," he said. "It's an addiction for a lot of people; it's an addiction they don't know they have."

After working hard to become debt-free, Swanson said he hopes he can serve as an example for others to do the same.

"We know things are going to happen ... if we can commit ourselves to doing it when times get rough like they are now ... we can be happy with our lives," Swanson said.

For more information on Swanson and his organization or tips and advice on becoming debt-free, visit www.beatingdebt.org.

Contact Jacksonville/Onslow government reporter Molly DeWitt at 910-219-8455 or mdewitt@freedomenc.com.