Today debt is enslaving and consuming modern American culture. What does the Bible have to say about solving this problem? Today I want to give you some practical tips on how & why to get out of debt, and stay out of debt.
Did you know that the root meaning of the word debt is "death?" Although the Bible is clear that no debt should extend beyond 7 years, over the last 60 years banks have extended mortgage loans from 7, to 10, to 15, to 20, and now 30 years (to their great finincial benefit, I should add). God's solution to inter-generational debt was The Year of Jubilee, first established in the Mosaic covenant. It was God's way of insuring that the debt of the fathers would not be passed on to the children. Every fifty years all debt was forgiven and a fresh start was possible for everyone.
Today debt is strangling our children. Debt has become the legalized drug of the last generation -- after having been shunned for the previous 10 generations in America. There are many reasons for the explosion of debt and credit, but the gospel solution is still the same... "owe no man anything except to love him." So how can we learn to overcome the temptation to borrow?
1. First, study and obey the scriptures for God's rules on debt.
2. Prioritize your expenses (include both a tithe to your local church or nurturing ministry, and give yourself a 10% savings cushion for emergencies that always come up). If you don't have enough money to pay your bills you have two choices: 1. Earn more; or 2. Spend less. This may mean reducing your life-style to fit you pocketbook. At this point you will be in a position to receive blessings from the Lord.
3. Establish a money-management system that works for you and then begin training your children in these principles before they fall into the credit trap too!
In summary. God's Word is anti-debt because the debtor becomes a slave to the lender. Let's stop borrowing against our future and begin to save an inheritance for our children.