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Utah Takes First Place Again

First place for bankruptcies. What do you think the relationship is between the high LDS population of Utah and the high rate of debt? Here is the article from the Deseret News:


https://deseretnews.com/dn/view/0,1249,595072079,00.html

And below is another article, about one year ago that looks at the LDS church and reasons why its members may have higher bankruptcy rates. Larger families, bigger charitable contributions, ( mostly tithing) Salt Lake leads the U.S. in charitable contributions. Another factor is lending companies base their decision on the amount of mortgage you can afford by your income. But LDS members pay approx 15 pct of their income to the church which the lenders don't consider when they decide how much of a mortgage payment you can afford.


https://www.slweekly.com/editorial/2003/feat_2003-07-31.cfm

Again Place Takes Utah

I read the first article and most of the second. I agree with a lot of what was said. I will summarize what I think here.

First, because people pay tithing, there is at least 10% of their income which is unavailable for paying bills. Many people, not just LDS, don't have a good handle on what they can afford in their budget realistically. They rely upon the lender's decision. If the bank thinks they can afford the loan, then they can. Well, since the bank is considering all of their income, this is a faulty logic. I know I have worried in the past when I was getting my mortgage. The bank was very quick to approve it, but I worried if I could really afford it when tithing was considered. Yes, you know what the payment will be, but there are formulas in place that do a good job of deciding if you will really be able to live within the payment structure.

Second, in Utah, there are probably many more single family incomes than in other states. Yet, most of those families don't want to live any differently than two income families do. Even if you consider that many families have one member who makes significantly less than the other, it still probably means most families in Utah have around 2/3 the income of a two family household at best. Yet, they want to live the same lifestyle.

Third, we are taught that prosperity is a sign of worthiness. This may not be Church doctrine, but it really is taught. I don't mean via official doctrine, but most members really believe it. You can see evidence of it right here on this forum if you check out some of the threads. Not saying the members here believe in this concept, but that they are aware of it. So, the pressure on a young family to keep up with the neighbors is more than just because they want the latest toys. It plays into how they feel about themselves and their worthiness. How many "poor" general authorities do we have? You can't go on a mission as an adult unless you are able to afford to live for an extended period without a source of income. The LDS culture really does help to propogate the myth that if you live your life in accordance with the gospel the Lord will reward you financially. So, if you are not being rewarded financially, what does that mean?

I don't think any of this blame lies with the Church though. People should follow the counsel of the prophet and live within their means. If this means you live in a smaller house or drive less of a car, so be it. I am just saying I understand how it happens and why and that I think a lot of it is directly related to what we are taught and believe about the gospel.

Utah Takes First Place Again Studies Doctrine Mormon

I agree with you Tenaheff. I think some members make the mistake of thinking, well, I pay my tithing so the Lord has to bless me because he has promised blessings. Therefore, even though I don't know how we can afford it, we can buy that bigger house and the new car. The Lord will provide a way.

While the Lord has promised blessings for those who pay their tithing, he never said those blessings would be material in nature. Maybe you will be blessed with greater spirituality, or a better understanding of gospel principles, or maybe with faithful children. There are endless ways the Lord can bless you. And yes, if he so chooses, he can make those blessing financial in nature, but more often than not they will be a different kind of blessing.

I earn what I consider to be a below average income but we have never come close to bankruptcy. We have 4 kids in a 3 bdr house and for some time we had to have a son and daughter share a room. Many times we were tempted to buy a larger home to better fit our needs but decided instead to live within our means even though it meant certain sacrifices.

Now I understand there are situations that come up out of our control like natural disasters, or medical bills and these situations are why bankruptcy laws were made. But more often than not, people today file bankruptcy because of huge credit card debt, debt they got into while buying things they wanted just to keep up with the Joneses.

It is sad that a state like Utah, where half the population is LDS is the nations leader in bankruptcies. You would think with the church's influence, Utah would be near the bottom of the list. Apparently many are not listening to the Prophet.