Purging Plastic

We've heard plenty during this recession about people living beyond their means — with the staggering credit card balances to prove it. But in a hopeful sign that the recession is, at the very least, teaching us all a valuable lesson, All Things Considered profiled Rachel Wilson, who was $17,000 in debt two years ago, and who, just this month, made her last payment and is living debt-free.

Being debt-free means Wilson can now put that money she was sinking into credit card payments into savings. And it looks like Wilson isn't the only one. In May, the household savings rate rose to 6.9 percent.

Maybe you think your debts are insurmountable? NBC reported on Katrina Clements who was once saddled with $500,000 in credit card debt, at a time when she was earning $30,000. When in need — both spiritually and financially — Clements turned to her church. The pastor there encourages his flock to cut up their plastic at the altar. That advice, along with a mix of changes in her spending habits and calling creditors to reduce interest rates, helped Clements to become debt-free. She believes so firmly in how the church helped her out of debt, she wrote a book about it, which you can buy on her website.

Oh, and incidentally, she accepts Visa and Mastercard.