Credit Card Debt Management

We’ve talked about charitable giving with the credit card. It is becoming much more popular for churches to jump on board the e-giving train as well. Congregation members see the value in collecting points while doing good. In some cases, they may simply have no cash or check on hand and will use their debit card as an alternative. Here’s hoping this doesn’t turn into a guilt-driven debt-enabling opportunity for irresponsible spenders. At any rate, church leaders are viewing the innovative payment options as a direct line to reach that group of consumers known as “Generation Plastic” - and they’re right.

Giving has increased at the many churches that have implemented the new technology. In the Dallas area, that amounts to 55 percent of 200 churches polled by the Dallas Morning News. Dr. Marty Baker, the Georgia pastor who is marketing the SecureGive electronic donation kiosk, said his church has seen a 20 percent increase in first-time givers after installing the machine in the church building.

MyChurchDonations.com, which some may consider archaic in its approach, offers churches Electronic Donation Payment Authorization forms to distribute to congregation members. The company’s web site enables church treasurers to withdraw the specified amount from parishioners’ bank accounts electronically. The site also offers this responsible advice:

“Make sure the treasurer pays attention to the credit card donations and watches for possible misuse by those who have trouble managing their finances. Responsible stewardship is not just about giving money, and a tactful educational intervention by the Pastor could be very helpful to the person.”

The church will need enough participation to make the fees worthwhile, but participation shouldn’t be a real problem. As church leadership is turned over to younger, more forward-thinking generations, you can probably expect to see these in about every church of considerable size within the next few years.

Last night, a fireman made his annual call to my household for charitable donations. We donated last year. This year, due to a recent household budget crunch, my husband declined. He, like myself, is very inclined toward charitable giving. However, sometimes fears of making ends meet can hold a person back. Or maybe it’s just a matter of self-discipline or even greed.

Upon further thought, a donation to the firefighters isn’t going to break the bank and we will probably call the number back today. But in these tough economic times, how does one make their wallet match their heart’s charitable intent. Like Mr. Credit Card, I strive for about 10-percent charitable giving. Thus, his recent post on how credit cards can further your charitable donations really caught my eye:

1. Donate my Credit Card Reward Points to Charity: I carry the Amex Platinum Charge Card, the Business Gold Rewards Card, both which earns me Membership Reward Points. I could potentially donate my points to any public charity. Problem with this is that I will be tempted to use my reward points for other purposes!

2. Get a charity credit card: The company I work for supports the Make-A-Wish Foundation. I recently joined the committee to help organize a series of fund raisers. I could potentially get Make-A-Wish Credit Card, use it and have 1% of the amount that I charge to the card automatically donated to the Make-A-Wish Foundation.