Coach's Corner

Money Makeover (Debt)

A dangerous and underlying cultural myth is, "Debt is expected and unavoidable." Debt is now made to appear glamorous by dressing it up in a tuxedo and calling it "credit." Our culture promotes credit as painless and without negative consequences. Familiar phrases seductively ring in our ears:

• "Play now, pay later"
• "No money down. No payments until…"
• "You can afford it. Minimum payments are only…"
• "You deserve it."

As we explore the mind and heart of God we find that the Bible characterizes the God-honoring debtor as “cautious.” The cautious debtor is one who avoids entering into debt, is careful and strategic when incurring debt, and always repays debt. Scripture has two guidelines for us about debt. First, if we owe debt, we must repay it. Psalm 37:21 says, “The wicked borrow and do not repay…” Secondly, and better yet, avoid debt altogether because it produces bondage. When you owe someone money, they own a piece of you. Proverbs 22:7 says, “The borrower is servant to the lender.”

There are spiritual dangers of debt to consider. Firstly, debt presumes on the future. Every time we take on debt, we are presuming that we will be able to pay it back. The ad says, “You can afford a $150 monthly payment,” and we believe it. While it may be true at the moment, we may not be able to pay it for the life of the loan. James 4:14 says, “You do not even know what will happen tomorrow.”

The second spiritual danger of debt is we deny God the opportunity to teach us. God may wish to teach us about his love and provision but we can deny Him that opportunity. For example, I desire something I don’t have the money for but I buy it anyway and put it on my credit card. I can just imagine God saying, “I’m so sorry you did that. I was going to have a friend give you that very thing. Not only have you denied me the opportunity to bless you and show you my love, but you’ve also placed yourself in bondage to debt

The third spiritual danger is that debt often fosters envy and greed. We all have a natural inclination to want more, and debt and credit can be used to satisfy that envious, greedy part of us. Luke 12:15 says, “Beware! Don’t be greedy for what you don’t have. Real life is not measured by how much we own.”

Credit cards have been one of the biggest problems in our culture. In a world where credit cards are already pre-approved and sent to your home it is an easy trap to debt. Here are three quick credit card rules to consider:

• Use credit cards only for budgeted items.
• Pay the balance in full every month
• The third rule is that if you violate rule one or two, cut up your cards.

In conclusion debt repayment is a great investment! Many people are looking for some advice on investing. Before looking for stocks or mutual funds to invest in, ask yourself the question, “Do I have any consumer debt?” If so, you have a wonderful investment opportunity!

Posted June 02, 2009