Coalition mobilizes effort to change nation's accumulation, dependence on debt

A coalition of consumer advocates, public policy groups, and academics wants to attack our country's dependence on debt by creating a national campaign much like the one used to curb smoking.

It's a good idea given the current economic crisis. Maybe people might benefit from a snappy way to put a stop to their accumulation of debt.

The idea of a nationwide advertising certainly has worked for the debt-pushers.

The organizations leading this effort include the Institute for American Values, the Institute for Advanced Studies in Culture, the New America Foundation, Public Agenda, Demos, the Consumer Federation of America, and the National Federation of Community Development Credit Unions.

"We are trying to change attitudes," said David Blankenhorn, the president of the Institute for American Values. "We would like to put in a good word for thrifty as a value and a practice."

The coalition is holding a conference Monday and Tuesday and has issued a report, "For a New Thrift: Confronting the Debt Culture." There's no major revelation in the 68-page report. It merely lists the many ways debt has taken down so many.

Foreclosures, which soared to over a million in 2007, are predicted to affect about 2.5 million households this year. Consumer bankruptcy filings are also up significantly. Of course, there is the mortgage meltdown. And now auto loan and credit card delinquencies are also rising.

But even before the subprime debacle, many people struggled with a growing debt burden. The Federal Reserve recently reported that consumer credit increased by $15.3 billion in March to $2.56 trillion.

So who's at fault for all this indebtedness?

To be sure, the ceaseless temptation to overspend is part of the story, the coalition leaders say. But just blaming or railing against consumers won't fix our debt problem. We've got to look at the financial institutions, or antithrifts, as the coalition calls them.

"There is this imbalance between institutions that want you to save and build assets and institutions doing the opposite," Blankenhorn said.

It's these antithrifts - payday lenders, auto title lenders, credit card issuers, subprime mortgage lenders, private student loan companies, and state-owned and sanctioned lottery operations - that have created a climate where being thrifty isn't the norm anymore.

Coalition leaders argue it's time to use the same tactics as the financial institutions and state lotteries to capture people's attention. To start, how about playing off Capital One's ubiquitous ad slogan, "What's in Your Wallet?" The thrift initiative could advertise instead: "What's in My Wallet? Cash!"

Media are powerful, and with the right message, I think this coalition can renew the value of thriftiness and get people to curtail their credit usage.

Michelle Singletary is a columnist for The Washington Post. She can be reached at singletarym@washpost.com.