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Credit Card Debt
Dangers of debt
Debt. The world tells you one thing. But there is a better way.
The world says credit is an important part of your financial identity. the more credit cards you have, the better your lifestyle can be. Anything is within your grasp if you can simply get the payments low enough.
Even so, people should never put themselves in a position where they might unexpectedly fall into "not repaying". And borrowing with no guaranteed way to repay only opens the way to do so.
As we learned in Session 2 (of the DVD), debt has two primary dangers.
First, debt always presumes upon the future. If you go into debt, you are obligated to repay - yet you take on that obligation without knowing for certain whether you will be able to repay or not.
Second, debt may deny Him an opportunity to work. For instance, if Ron Blue had funded the start-up of his financial planning practice the "normal" way through a line of credit, he's convinced he would have prevented Him from providing the necessary funds - as He miraculously did!
Action Item:
Open your wallet or purse and remove all the credit cards you carry with you. Lay them all out before you. Think through how much you owe on each card. Add it up (if it's zero, we salute you!) Without even considering your consumer debt, auto loans, etc., ask yourself how dangerous your debt situation is - in light of what we've learned.
Before you put those credit cards back in your wallet ... consider putting them elsewhere!
Today's Bottom Line
Debt - the flip
side of compounding - works against
you financially.
Calculate your loan interest as well as your compounding interest with our calculators.
This article is adapted
from Master your money
