It pays to have dollar sense

Consumer spending accounts for about 70 percent of the American economy. Consumer credit peaked in July 2008, and that was just before a worsening of the credit crisis brought down financial giants like Lehman Brothers and American International Group.

So is it ever okay to borrow money? Based on the Scriptural Financial Freedom principles, it may seem that borrowing is always a bad idea. There are times, however, when using credit cards is both acceptable and even necessary.

Using credit can actually be a wise financial move. For example, imagine a family that needs school books for the children's education. They do not have the money for school books today, but they will within two weeks when dad's paycheck comes. Using credit to acquire them makes good sense as long as they make the funds available to pay off that credit card balance. But will you be in a position to take advantage of the possibilities?

A home mortgage is one of the most common use of credit that most Americans point to as being justifiable and even sensible. In times of appreciating property values or exceptionally low interest rates, that might be a good idea. Buying a home does make good economic sense, even if you have to take out a loan to make the purchase.

In times of economic uncertainty, however, assuming such a large debt may not be wise. Can you, as a homeowner, handle the stress associated with a plateau - or even worse, a drop in the value of your home? Can you continue to make monthly payments if you loose you job?

The main question you must ask yourself before buying a home is "How much economic uncertainty do I expect to see?" A little patience may help you to take advantageof an underpriced and oversupplied property market.

Today's Bottom Line

The decision to take credit must make economic sense. Check your motives before going into debt. Are you rushing into an uncertain financial commitment? The greater the debt, the greater the stress.

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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