Credit Card = Debt Consolidation?

Credit, Borrowing, and Debt

Today we all tend to use terms like "credit", "debt", and "borrow" almost as if they are the same. But there are distinct differences between the three. You have credit when you are given the right to borrow. When you use that "right", you are actually borrowing. And until you repay, you are in debt.

Debt doesn't seem to bother many of today's buyers. Trade deficits are in the billions, and national debt are in the trillions! The national debt would work out to about $25,000 per citizen! And the invitations continue: "Interest free on your credit card!".

Borrowing money has its price. Credit cards make it much easier. Anytime you use credit to borrow money, you precommit your future income. The effects can range from inconvenience to financial disaster.

Many people justify indebtedness with the thought that they are making an investment when they purchase items.

What is an investment? Something you put money into that is growing in value or has an economic return. Therefore, a car is almost never an investment. Rarely does it grow in value or have an economic return. A home may fulfill that defination, but its primary purpose is not to make money but to provide shelter. Follow the Sequential Investment Strategy step by step and you can grow prudently rather than jumping ahead into risky ventures you're not prepared to take.

Even so, we need to step back and gain some prespective on investing. While He encourages us to be wise managers, He also wants us to maintain balance in pursuing our financial goals. So here's a timely reminder from His Word:

Do not overwork to be rich; because of your own understanding, cease! Will you set your eyes on that which is not? For riches certainly make themselves wings; they fly away like an eagle .... (Pro 23:4-5)

There's no get-rich-quick scheme in His Word you can follow. If you pursue money, it will only fly away from you faster. And lead you down paths that head toward destruction.

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.

Today's Bottom Line

Investments of excess cash flow should be made with a sound strategy, pure motives, and diligent faithfulness.

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