July 2008
Using Debt Responsibly
By Barry G. Allen, President and CEO
We conclude this stewardship lesson, Debt Management, by looking at how to use debt responsibly. Debt itself is not the problem – how we use it is the problem. If we charge more on our credit cards than we can afford to pay at the end of the month, we abused that credit card. However, if you pay off your credit card balance each month and do not carry balances over, you are managing your debt responsibly. We pray that these lessons have helped you take a serious look at your debt situation and prayerfully considered God’s will for getting out of debt.
How do I use debt responsibly?
- Always ask yourself, “Is this debt to provide for my needs or my wants?”
- Determine if you control your debt or if your debt controls you.
- If you use a credit card, pay it off monthly so there are no interest or finance charges.
- If you can’t discipline yourself to pay your credit card off each month, DON’T USE a credit card.
- There is no “free” debt – recognize that paying in cash instead of financing your purchase over an “interest-free” period of time may allow you to negotiate a lower sales price, saving you money.
What does this have to do with my Christian walk?
The scriptures tell us that we should live our lives in a way that glorifies the Lord and that one day we will be called to answer for the choices we made. This judgement time will also include the way we chose to handle our money. Did we tie ourselves down in debt and therefore, became servants to the debtor (Proverbs 22:7)? Or did we keep free from the chains of debt and then become able to answer the Lord’s calling when it came to helping others through additional offerings of money and time?
Most people incur debt to:
- To get what we want or need today and pay for it in the future and/or
- To buy more than we could otherwise.
Instant gratification is the way our society lives, but it is not the way the Bible teaches. Matthew 6:19-21 and 24 summarizes the way the Lord wants us to live:
“Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moth and rust do not destroy and where thieves do not break in and steal. For where your treasure is, there your heart will be also. You cannot serve both God and Money.”
We encourage you to pray about your debt situation and how God wants to work in that area of your life. Then use the tools presented to you this month to reach for and accomplish financial freedom from debt. Look forward to how much more you can glorify the Lord when that bondage is gone from your life and you are freed up financially to do what the Lords asks of you.
Prayer Focus: Pray for the discipline to follow-through with the plan you developed to get out of debt and to change your spending habits so you don’t incur any additional debt.
Next Month: Living Beneath Your Means
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