The Bankruptcy Trap

Personal bankruptcies - men and women financially destroyed by debt - are always devastating. Bankruptcy is very real. The consequencies can be unreal. Many go into depression. Some even end up tragically. Even for some christians.

Bankruptcy is a result of unpaid debt. Debt, however, is only symptomatic of the real problem: that is greed, self-indulgence, impatience, fear, or something else.

When we experience problems like those, we try to patch them over with something that can ease our pain quickly, like drinking, rather than trust in Him and rely on His provision. But that only feeds the root problem. It never solves anything. Here are some tips foir avoiding bankruptcy:

1. Compounding works against you. Compounding can enlarge your investment amazingly over time. But the same principle can work against you - when you're the one who must pay the growing interest.

2. Getting in debt is easier than getting out. If you're overspending by $1,000 a year, then you must not only stop overspending, but also start paying it back with interest. That's difficult. But it can be done, little by little over a long time.

3. Debt mortgages the future. Because of the interest payments you must make, you are sentencing yourself to a lower standard of living in the future.

4. Debt robs you of the freedom of choice. You have an obligation to repay - it becomes your number one financial priority.

Rather than using debt to solve our problems - and finding ourselves in greater jeopardy than before - He invites us to place ourselves in His hands.

Action Item:

Take a financial physical checkup. Establish a finish line. Plan how to get from here to there.

Today's Bottom Line

Debt - a symptom of much deeper problems - keeps us from experiencing His best for us.

The Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

Calculate your mortgage, credit card repayment, loan interest as well as your compounding interest and more with our 25 calculators!

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