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Handling Debt Deut. 24-10-13 Introduction:
Greek mythology included a character named Midas. Everything he touched turned
to gold. It became a curse when his food, water, and daughter turned to gold.
Money can be a blessing or a curse. Matthew
6.25-30 Jesus said to not be anxious about material and physical needs for
God knows and provides what we really need. Instead we are to have faith,
provide good stewardship, and trust in God. One
issue we must talk about is that of debt. I)
We Have Become A Nation of Debtors A)
Last year 5.3 billion credit card offers were mailed out. B)
Last year American’s owned $660 billion in credit card debt. C)
Our National Debt is over $18000 per household. D)
The Stimulus package just passed is about a trillion dollars. How much is a
trillion dollars. See slides 1.
The total national debt is expected to be 9 trillion dollars 2.
That equals to $80,000 per household E)
At one time debt was discouraged and rarely extended 1.
1910 Sears Catalog “Buying on credit is folly” 2.
J.C. Penny – James “Cash” Penny 3.
Phrases such as “Neither a lender or borrower be”; “If you can’t afford
it, don’t buy it” were common place. F)
Today debt is encouraged 1.
We are told to use “Other Peoples Money” (OPM) 2.
“Buy now and pay later” is used to lure us into buying items we can not
afford. G)
Results 1.
We are the most indebted country in the history of mankind. 2.
People are going to have to pay for things they do not even have. 3.
As a nation we are facing financial ruin – bailouts, banking crisis, housing
bubble, etc. B)
Facts About Debt A)
Debt is any amount of money owed to anyone for anything. 1.
It is not a gift but a loan. 2.
With the expectation of it being repaid. B)
Debt is not a sin but talked about in the Old Testament 1.
A man could loan to his neighbor ask for a pledge, Deut.
24.10-11 2.
Could not charge interest when loaning to the poor, Lev.
25.35-37 3.
OK to charge interest of a foreigner on a loan but not a brother, Deut. 23.19-20. 4.
Debt was forgiven every 7th year, Year of Jubilee, Deut. 15.1-2. C)
Key Principles 1.
Debt is not a sin but can cause one to sin. 2.
Bible does discourage the use of debt. 3.
Debt can be a symptom of greed and covetousness, lack of discipline, or just
being naïve. III)
The Trap of Indebtedness (The ease of going down the slippery slope). A)
Easy to get credit cards and bank loans 1.
All major stores offer credit cards and some type of incentive to get you fill
one out – Sears, J.C. Penny, Visa, MasterCard, etc. 2.
Has not always been so – cash is king. B)
What is the problem? 1.
Our economy is consumer driven, borrowing is expected, encouraged, and easy. 2.
The more TV one watches the higher the lifestyle desired. Advertizing is
designed to create demand and not just fulfill need. 3.
This has lead to people not thinking about the cost of what they are buying.
a. Young couples try to get too much too quickly – new house, new
furniture, new car, and new bills.
b. 20% of last years bankruptcies were college students.
c. No thought of what happens if I lose my job or get sick. 4.
All of this creates financial problems with then creates family problems.
a. Communication stops, second guessing starts, arguing consumes,
and spiritual problems occur. IV)
Dangers of Debt A)
The real cost of debt needs to be considered, Luke 14.28 1.
The real cost includes the interest (House, Rolex watch, etc) Proverbs 14.15
a. You will almost certainly owe more than what you paid for the
new car in the first couple of years.
b. Housing crisis caused by couples being “upside down” on their
loan.
c. Be careful of sales items tied to financing. 2.
Think of the total cost. 3.
Facts about credit cards
a. Encourages overspending, the average credit card holder spends
12 to 18% more than those without cards.
b. Credit card companies consider those that pay off their cards as
“Dead beats” B)
There must be a way to pay off the debt, Psalms 37.21 1.
Christians must face their obligations, Romans
12.17; Ecc. 5.5 2.
There are Bible warnings about “surety” and the buying of things we can not
afford, Proverbs 17.18; 11.15. 3.
You can easily lose everything you have by over borrowing, Proverbs 22.26-27 V)
Biblical Principles of Borrowing A)
Many Biblical references are negative, Proverbs 22.7 1.
The borrower places themselves in bondage. The bank really does own it! B)
Borrowing can place us in the position of robbing Peter to pay Paul 1.
Causes people to neglect their family. C)
It robs from our savings and future 1.
The principle of interest works for or against you. 2.
Buy $100,000 house at 5% you pay over $93,000 in interest over 30 years. VI)
Criteria For Taking On Debt A)
Does it make economic sense? Proverbs 27.23-24 1.
Can I pay it back? Is it a good investment? What will I have at the end of the
loan? 2.
Separate the emotion from the logic. B)
Does your spouse agree? Genesis 2.24 1.
Wives tend to have a sixth sense, Proverbs
19.14b 2.
Husbands are “bigger” impulse buyers.
a. Wives tend to buy more items on impulse (pair of shoes)
b. Husbands tend to buy higher price items on impulse (car) C)
Can I have peace of mind? D)
Is there any other way? VII)
Solutions For Getting Out of Debt A)
Solutions that generally do not or can not work 1.
The wife going to work to pay off the debt
a. Usually the lifestyle increases, cost of clothing, transportation,
meals, child care, etc.
b. Indebtedness is generally a spending problem and not an earning
problem.
c. Only works if the wife goes to work to really pay off the debt and
every dollar she makes goes for that purpose. 2.
Stop giving to the Lord.
a. Both giving and paying off your
debt is commanded by God. 3.
Ignore the problem, Proverbs 15.19 4.
Debt consolidation -- 78% of the
time after someone consolidates their credit card debt, the debt grows back. B)
Positive solutions 1.
Ask, why am I in debt? Greed, irresponsible, impatient, etc. 2.
Stop buying and start paying off the debt.
a. Credit counselors will tear up your credit cards.
b. Work to pay off the debt. 3.
Be informed, know the terms and conditions before you buy, Proverbs 27.23 4.
Trust in the Lord, Matthew 6.25-30. Conclusion:
We are all indebt to God because of sin. This is a debt we can not pay off
ourselves but has already been paid for us. Jesus died on the cross in our
place. We either accept His payment or we will spend eternity paying the price
ourselves. |