What’s in Your Wallet?

Numerous experts have said there is good and bad debt. I say it another way – there is good and bad debt management. Good debt management leads to higher credit scores that will lower your cost to borrow. It helps generate income and increases your net worth. Also, good debt management is when the outstanding loan has been repaid. On the other hand, bad debt management stems from late payments, excessive amount of money owed, length of credit history and the type of credit borrowed. It leads to lower credit scores, higher cost to borrow money, and does not generate income, i.e. cars, clothes, credit cards, and gadgets. The monetary impact between good and bad debt management can lead to a $200 difference per month depending on your situation. Bad debt management can be reversed; the Bible even talks about it in a way that gives us hope. Proverbs 10:22 says the blessing of the Lord makes a person rich, and he adds no sorrow with it. Blessing relates to favor, empowerment, success, and prosperity. If your debt is causing pain, sickness, sleepless nights, irritation, fear, anger, and worry, it’s not a blessing. It’s time to get rid of it. God does not want you to live this type of life. We all have experienced some type of financial bondage. Debt has the power to enslave if it’s not managed properly. It sabotages relationships between spouses, family, and friends, and could possibly destroy our future. Once we’re out of debt, we can do things with our finances such as take vacations, save for retirement, or establish a business. If you are serious about turning bad debt management around, attempt the following steps:

• Acquire peace by praying daily for your finances.
• Cut up your credit cards and keep one in case of an emergency. If you can’t do that, switch to a debit card which is tied to your checking account to control spending.
• Pay off your debts from the smallest to the largest and make payments on time every month to boost your credit scores.
• Ask the creditors to pay off your debt, but only after completing the steps above and establishing a record of on time payments. (My wife and I were able to eliminate major debt from our household this way.)
• Consider selling something of value - your financial breakthrough is found in your house (consider 2 Kings 4:1-7).
• Pay off debt for someone else. It’s the golden rule found in Luke 6:31.
• Be patient – your situation will turnaround.

I know some of us have problems with debt. Everyone does not have cash tucked away in their wallet. The hardest thing for individuals to do is to get started. Commit to pray daily for your finances, practice moderation in spending with a budget, or attempt a credit card fast in order to turn your situation around. Know that God wants to help you grow in wisdom and knowledge about your finances. Your ultimate goal here is to ensure cash is available when you need it. Once debt is conquered, your financial struggle is over. Leave your legacy!