Let's Make It Cool to Save

Is it the consumers?

"Clearly, human frailty is part of the story," the report says. "Some people get over their heads in debt because of their own profligacy and irresponsible choices."

Are we are a nation of debtors because it's what's best for the overall economy?

To be sure, the ceaseless temptation to overspend is also part of the story, the coalition leaders say. And just blaming or railing against consumers won't fix our debt problem. We've got to look at the financial institutions, or anti-thrifts, 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 anti-thrifts -- 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.

"The anti-thrifts have worked relentlessly to reduce the traditional inhibitions and stigma associated with over-indebtedness," the report says.

To combat the culture of credit, the coalition has come up with a number of proposals:

· Promote the use of credit unions, which often offer lower-cost financial products.

· Encourage financial institutions to move into low- to moderate-income neighborhoods and provide low-interest consumer loans. For example, in Appleton, Wis., the Prospera Credit Union has teamed up with Goodwill Industries of North Central Wisconsin to create GoodMoney, where consumers can get short-term loans that are much cheaper than they can get from a payday lender.