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World Bank chief warns of financial crisis World Bank chief Robert Zoellick on Saturday warned of a "new and more dangerous" time in the global economy...
US Recession Risks Rises The threat of a new recession is rising in the United States, economists say, as they slash their ..
Unsafe US debt remains safe haven US Treasury bonds remain a hot ticket for investors looking for a low risk investment in a volatile market despite the unprecedented ...
US borrowing tops 100% of GDP US DEBT shot up US$238 billion (S$287.2 billion) to reach 100 per cent of gross domestic project after the government's debt ceiling was lifted
Consumers consumed by debt The average consumer may feel far removed from the heated debates concerning the $14.3 trillion debt ceiling. But the truth is...
Financial Crisis II. Get out of debt now There is increasing talk among traders and financial analysts that the latest slump in global share markets
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Debt counseling vs. debt consolidation

 

Scriptural Financial Freedom Obtaining God's blessings

 

 

 

 

 

Debt counseling vs. debt consolidation

Men, the heads of the household, are likely to find it the hardest to cope with debt problems. The rate of unemployment for men have increased, and this could have an impact on men's emotional well-being, according to one mental health charity. The recession may have affected more men than women, as the former were most hit by job losses. This has led to an increase in family debt problems as over a quarter pay have the mortgage and almost a third are responsible for all household bills.

The only absolute way to become debt-free, in the first place, is to have a financial plan prepared at the beginning of each year that does not allow for the use of debt, and that you will stick to through self-discipline.

 

The major problem most people face is how to get out of the debt that they are already in. there are only two ways to get out of debt after making the decision to avoid the use of debt: Examine the assets you have to see which ones could be sold in order to reduce debt; and in the absence of assets to sell to eliminate debt, set up a repayment schedule and strictly adhere to it.

Assets that may be sold are investment assets, the liquidation of savings accounts, and perhaps even borrowing from the cash value of life insurance at a lower interest rate rather than what is being paid on credit card and consumer debt.

In determining which assets to sell in order to reduce debt and be debt free, remember that the assets sold should have a lower yield or appreciation rate than the debt cost.

 

Repayment - the hard way

Not everyone has the luxury, however, of selling assets to repay debt. Many of you are perhaps deeply in debt and have no assets at all. In fact, statistically, 80% of Amercians owe more than what they own; therefore, selling assets is not an option. The only option, then - other than receiving an inheritance or striking oil - is the slow, painful, and difficult process of making monthly payments. You must decide, first of all, not to take on any more debt, and second, to set up a schedule of debt repayment.

 

Today's Bottom Line

One of the other keys to repaying debt is to precommit any extra income or amounts from reduced expenses - in other words, excess cash flow - to debt repayment.

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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Financial Freedom Tips & Toolbox

Today's Pick: The dangers of Debt The Dangers of Debt by [Stacy Johnson]

 

 

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