Millions of Americans are declaring financial sustainability, even if they don’t exactly call it that. After all, we can’t borrow our way out of debt.

We’re paying down or paying off credit cards. We’re getting rid of our mortgage or putting an extra payment toward the principal balance (which has huge cost savings advantages). Or we’re practicing other frugality rules. According to data from the Federal Reserve, the amount Americans owe on consumer loans and credit cards plummeted $21.6 billion in July of 2009 – the largest monthly drop in consumer debt since the Federal Reserve started to track it in 1943. The “cash for clunkers” will, no doubt, alter the outcomes for August and September, but the trend continues to be less appetite for debt, not more.

People are working to get the bankers out of our lives, demanding that we become someone other than a “consumer.” So while the Federal government continues to re-affirm their “wise” decisions to bailout bankers and big finance, Americans are choosing to fire their credit card companies and break their “death pledge” (aka mortgage) by paying it off early. Of course, there are also many Americans who are in so far over their heads that unfortunately, personal bankruptcy and home foreclosure are the only remedy.

I am, however, focusing on those who thrive in abundance, simplicity and sustainability when it comes to community, lifestyle and, yes, financial intelligence. As my wife and I write about in ECOpreneuring, you cannot have ecological sustainability without a large degree of social and economic equity. The ECOnomy is not about “free trade” but fair trade; it’s about commerce that restores the planet, not destroys it or exploits people.

You can join these financial freedom-seekers too, by practicing financial sustainability. As most of us intuitively recognize, the best things in life are free (or close to it).

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The world of credit might not be dead just yet but it has certainly become less appealing.

Credit card companies like Citibank, Bank of America Corp., Wells Fargo & Co. and American Express Co. have recently sent letters to their customers, notifying them that interest rates are going up, in some cases to 30% if a single payment is missed. (LA Times).

It’s one way for banks to try and deal with their insolvency issues given the current economic conditions.

The recession might be a great time to redesign your purchasing habits and buy only what you can with cold hard cash. Old school discipline tells you that if you don’t have the cash in the bank, that you don’t have the money to spend. It is perhaps a difficult notion to accept given a culture that swears by credit. But looking at it positively, changing your behavior now might mean that when paychecks fatten up again post the recession, you might just find that you have developed a propensity to save your new earnings rather than to spend them!

Image Credit: www.thetaoofmakingmoney.com

Step 1: Click once a day at TheHungerSite.com.

You’ll fund the donation of 1.1 cups of food. While you’re there, take a look at their equally worthy sister sites.

Step 2: Play at FreeRice.com.

Study for the GRE, test your English abilities, or simply bone up on your vocabulary. While you do, your clicks will generate funding for donating free rice to the hungry. Better yet, share this online game with students you know.

Step 3: Sign the petition at HelpSweden.org.

This tongue-in-cheek organization turns our concepts of poverty around and asks for a renewed commitment to the Millennium Development Goals. Read more about what makes HelpSweden a good idea.

Step 4: Put some of your paycheck into Kiva.org.

You’ll get your money back and you’ll have helped somebody to build a business or a home.

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Wells Fargo credit card and bank card customers have another choice in redeeming rewards points. Now, in addition to gift cards or airline tickets, Wells Fargo is offering up wind power. 5,000 points will get you 6,000 kilowatt hours, which they say is "equivalent to the clean air benefits of three acres of pine forest storing carbon for one year." 10,000 points will probably offset your carbon output for a whole year.

The green power points will be available to cardholders in May, which is the same time Bright Planet's Bright Card is set to launch. Bank of America isn't far behind Bright Planet on the US front, and The Barclaycard will hit the UK this summer.

So, the big question is (aside from, "What's in Your Wallet?") will people take advantage of these green credit options or will they stick with the emission intensive air miles? Would you choose to support wind power projects or put your spending power towards travel?

Via Environmental Leader; Paymentsnews.com