A wonderfully arranged 11 minute animation giving an even broader overview of the credit crisis than the FRONTLINE documentary.

Note: He got slammed with a $6K hosting bill over the weekend due to it’s popularity, so buy a shirt to help him pay the bills.

Update: Embedded the entire video from Vimeo instead of the two-parter from YouTube, for your viewing pleasure.

[Via Daring Fireball]

This afternoon’s episode of American Public Media’s The Story starts off with an interview with a Barbara, a member of Debtors Anonymous. Eye-opening.

How does she manage now that she’s off credit? Cash-only. She has a strict spending plan, tracks her checking account carefully, and only uses a debit card for the few times when she’d need a credit card (at the gas pump, online purchases, etc.)

Do you feel you’re addicted to credit? It’s definitely a crutch I need to get off of.

[Via VPR]

Leo Babauta on getting out of debt:

I highly recommend that people get out of debt and stay out of debt, especially as the economy hits difficult times. It’s not a good position to be in if you lose your job while burdened with lots of debt. Better: become debt-free, with a good emergency fund and a small budget. That’s recession-proof personal finances.

He has more helpful and inspiring articles in the Finance & Family section of his site.