“Just as the rich rule the poor, so the borrower is servant (slave) to the lender.”
-Proverbs 22:7
The basic questions before going into debt:
- Is the money I will be obligated to repay, and the bondage it will create, worth the value I’ll receive by getting the money or possessions now?
- Have I prayed about this? Have I sought godly counsel? What is the wise thing?
Rules in using credit cards:
- Never use your card for anything except budgeted purchases.
- Pay off your cards each month.
- The first month you have a credit card bill you can’t afford to pay in full – destroy the card and don’t get another.
How to get out of debt:
- Repent – unlearn the world’s values and learn God’s. Turn around!
- Give God the “first-fruits.” Recognize God ownership of all by giving to Him first.
- Incur no new debt. Stop the bleeding!
- Systematically eliminate existing debts. Have a plan and work it.
- Perform plastic surgery on your credit cards. Cut them up.
- Stop rationalizing your debt habit. Be honest.
- If debt seems like the best or a necessary choice, go slowly and prayerfully.
- Learn the difference between saving and spending.
- List your debts and, if necessary, contact your creditors. Tell them your plan.
- If you’ve done everything else and it still seems insufficient, consider ways to increase your income, or sell things, to eliminate your debts.
Financial Principles to live by:
- Nothing is a good deal unless you can afford it.
- Before you take matters into your own hands, God wants an opportunity to either provide for your needs or show you that they aren’t really needs.
- Just because you can afford something doesn’t mean God wants you to get it.
- Increased income doesn’t necessarily mean that God is saying spend more. More often, His real message is give more.
What’s your next step?
