For Impact


The Credit Class and The Asset Class

For Impact Ideas | | Nick Fellers

As American’s we are suckers for debt. Credit cards, houses, student loans. We’ve known the financial meltdown was coming for a while – just didn’t know when, the rate at which it would hit or how particular dominoes would fall.

One thing that’s clear – the landscape for debt will change. We’re going through an adjustment now. I think it’s good. I just hope that what we’re seeing now is the band-aid being pulled from the skin quickly and not very slowly – with prolonged pain.

There are those that will be hardest by this adjustment: "the credit class" and those that will experience changes more than pain: “the asset class”.

Note: Similar to the Rich Dad / Poor Dad principle around assets vs liabilities.

When you think about the credit class and the asset class it’s actually pretty easy to imagine who would fall into each. Younger generations are distanced from the great depression, have only known ‘free credit’ and use the credit to facilitate a lifestyle – great house, great car, great education. Older generations have the house, remember the depression (or stories about it from parents), are more cautious and conservative, have been successful, etc.

The asset class is not always old and the credit class is not always young. The point here is two-fold. (1)Think about WHO falls into the asset class and (2) Not EVERYONE falls into the credit class. Now is a great time to be visiting with the asset class. This could be those that are moving from Success to Significance. The asset class will be impacted by the financial crisis – but not paralyzed. In fact, having been with many, many individuals, business owners and families from the asset class they see this as a time of opportunity – to buy cheap assets! They aren’t consumed by paralyzing fear. They haven’t ended their giving (quite the opposite) and NOBODY is out visiting with them (right now).

Said differently: Yes, don’t be surprised to see some of the annual fund/events money dry up. The $20/month is more than likely coming from the credit class – not the asset class. Now is the time to go and visit with the asset class.
Now is the time to CHANGE.