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Financial Articles
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 deal is no big deal

 

Scriptural Financial Freedom Obtaining God's blessings

 

 

 

 

 

 

Debt deal is no big deal

"No one should pretend that they have solved anything other than an artificial political crisis," said Bob Bixby, executive director of the Concord Coalition, a nonpartisan deficit watchdog group. Bixby said he was watching the brokering of the final deal with "fixed horror".

The debt ceiling deal President Obama enacted cuts deficits and lets the country avoid default. But it is getting very muted cheers from serious fiscal experts -- the ones who actually understand the federal budget.

The bill relies too heavily on cuts to discretionary spending, which is not the major driver of the country's long-term deficits.

"We have not reached the promised land," Erskine Bowles and Senator Alan Simpson, the co-chairs of President Obama's bipartisan debt commission, said in a statement. "The plan doesn't do enough to stabilize our debt, nor does it make any meaningful structural reforms to address our nation's long-term fiscal problems."

 

Last month ratings agency Moody's put the US on review for downgrade.Fitch Ratings said it would cut its rating on Treasury securities if the Government's misses a debt payment. You'll have to give Amercian politicians "credit" for getting into this mess.

"While the agreement is clearly a step in the right direction, the United States ... must also confront tough choices on tax and spending against a weak economic backdrop if ... government debt is to be cut to safer levels."

Sadly, debt doesn't seem to bother many of today's buyers. Trade deficits are in the billions, and national debt is 14 trillion! The national debt would work out to about $40,000 per citizen! And the invitations continue: "Interest free on your credit card!".

According to Federal Reserve data, total household debt in the nation at the end of 2010 amounted to about $13.4 trillion, which means consumers owe almost as much as the federal government. The conclusion to be drawn is the U.S. population (as well as the government), is addicted to debt.

Unlike the US Government, credit card companies and other lenders are not inclined to solve consumer overspending by raising the credit limit. While some card issuers may raise limits in some cases for their best customers, most will simply cancel the card or close the account and demand full payment.

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. 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

Get out of debt now. "owe no one anything...". Pay off your credit cards as soon as possible. And increase your credit rating.

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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