Christian Topic: Debt And Credit
October 25, 2004 - by Crown Financial Ministries

No one who is financially bound can be spiritually free.
 
Debt
No one who is financially bound can be spiritually free, and the effect of debt on marriage is evident in the statistics of failed marriages. Being debt free is still God’s plan for His people.

What is debt?
Debt is something owed. God doesn’t say we can’t borrow, but He warns against surety – debt without a sure way to repay. If collateral is used to cover the balance owed in case of default, then the loan isn’t surety.

But most debt in America is surety – with inadequate collateral to satisfy the loan agreement.

Debt isn’t credit. Credit establishes a mutual trust between lender and borrower. But undisciplined use of credit can quickly lead to debt

Credit
Establish – Today, almost anyone qualifies for a credit card, although the limit may be the minimum.

Cancel – To cancel a credit card, the account must not be delinquent. Send a letter to the issuing bank and request that your account be cancelled. Credit cards belong to the issuing bank, so cut the cards in half and return them with your letter.

Causes of debt

Ignorance.
Most people aren’t trained to handle money. Today’s attitude is: If you want it, get it, you deserve it – if you haven’t the money, charge it.

Indulgence.
Americans tend to feel that we should get what we want, when we want it, and the concept of saving to buy something seems an alien concept.

Poor planning.
Without a written plan that measures and monitors income versus expense, you’ll eventually find yourself having financial troubles.

Get out of debt
“The prudent sees the evil and hides himself, but the naïve go on, and are punished for it” (Proverbs 22:3).

Give to God first.
Your first commitment should be the tithe from your gross income.

Stop borrowing.
This means credit cards, loans from banks or family – all consumer credit.

Develop a balanced budget.
A balanced budget is the primary tool for managing family money.

Develop a pay-back plan with creditors.
Most will work with those who want to repay them. Our Christian debt progams will help by reducing average interest rates to between 6% and 8% and by reducing or eliminating fees and consolidating your bills into one affordable monthly payment.

Learn to trust God.
God knows what you need, so begin to trust Him – wait for God’s provision.

Exercise self-discipline.
Curb impulses to buy. If it isn’t budgeted, don’t buy it.

Seek wise counsel.
You may require help to establish and maintain a budget and work with creditors.

Rely on God’s Word.
Base financial decisions on the principles of God’s Word, not the world’s advice.

If you are in debt, you’re bound to creditors and not free to serve God to the utmost. Decide now to get out of debt and stay out. With God’s help and your discipline, you can become debt free and stay that way.

© Copyright 2004, Crown Financial Ministries. All rights reserved.

Please fill out the Christian debt information request form on the right to request more information about our Christian debt programs.