With the recent downturn in the economy, people in the United States are filing bankruptcy at an alarming rate. Some of these are business ventures that suffered from hard times. Too many, however, are personal bankruptcies that could have been avoided.

A study commissioned by the American Bankruptcy Institute identified five main reasons people file for bankruptcy. Chief among these is that personal credit, especially in the form of credit cards, is too easy to obtain. Other reasons are the sudden loss of a job, financial mismanagement, catastrophic medical expenses and divorce.

Life can be filled with unplanned events. Unexpected tragedies occur, leaving people with insurmountable debts. But most bankruptcies come because people have conducted themselves opposite to how the Lord's prophets have directed through the decades.

This is hardly a problem unique to the United States. Credit is easy to obtain in most industrialized nations. Now that the Christmas shopping season is in full swing, members of the Church, in particular, should be careful not to let a celebration of the Prince of Peace, whose mission was to set us free, turn into a season of financial bondage.

It is common these days for people to joke about how long it takes to pay off their Christmas bills. However, there is nothing funny about a family that is burdened by debt. When the family provider becomes unemployed — which, unfortunately, is happening all too often these days — the situation becomes tragic.

But today's economic slowdown is mild by historic comparisons. Way back in 1941, as the world was emerging from a global depression and entering into a devastating war, President Heber J. Grant warned about the same thing. He said, "If there is any one thing that will bring peace and contentment into the human heart, and into the family, it is to live within our means. And if there is any one thing that is grinding and discouraging and disheartening, it is to have debts and obligations that one cannot meet." (Gospel Standards, comp. G. Homer Durham [1941], p. 111.)

Even in war, the message was the same. President Grant was echoing what prophets had said before him and foreshadowing what prophets would say after him. In our day, President Gordon B. Hinckley said, "To satisfy our desires, we go into debt, dissipate our resources in the payment of high interest, and become as slaves working to pay it off. . . .

"I commend to you the virtues of thrift and industry. . . . It is work and thrift that make the family independent." ("Thou Shalt Not Covet," Ensign, March 1990, p. 4.)

When President Hinckley spoke of high interest, he no doubt was referring to the practice of many credit card companies to charge double-digit interest on balances while luring borrowers with small monthly payments. A wise consumer would make interest a servant, rather than the other way around.

Debt might be appropriate for some necessities, such as a home, an education or, when necessary, a car. The prophets have counseled members to use credit wisely and prayerfully in these cases, and to avoid it when purchasing luxuries or items that are unnecessary.

Members of the Church know in their hearts that Christmas joy has nothing at all to do with costly gifts. It has everything to do with the gift of the Savior to the world. And lasting family happiness can actually be damaged, even destroyed, by runaway debt.

The Savior taught the world how to be free. His example and His teachings show us the only way to true happiness and eternal joy with the ones we love. The Christmas tradition of giving gifts is appropriate as a way to honor Him and the tremendous gift He has given to all mankind.

Each of us owes a debt to Jesus for His atonement. That should be the only debt on our minds this Christmas season.