MONEY IN HD: TOOLS TO AVOID DEBT
So let me ask you a question, do you know if you have a problem with debt? Now that might seem like a pretty obvious question to some of you. I mean, some of you might be thinking, well, ya, I definitely have a problem with debt. I have creditors calling me all the time asking me for money that I don’t have and my credit card bills are so high I just don’t know how I will ever pay them. And then there might be some of you here that are thinking, I don’t have any debt, I don’t owe any credit card companies anything, so it is not a problem for me. But how do you really know? Well, let me share six indicators that you have a problem with debt.
INDICATOR #1: You are living on credit instead of paying cash.
INDICATOR #2: You are delaying payments or paying the minimum you owe.
INDICATOR #3: Your debt is more than 20 percent of your net monthly income.
INDICATOR #4: You are unable to tithe or save.
INDICATOR #5: You spend money on extravagant items.
INDICATOR #6: You are always looking for get rich quick ideas.
If any of those indicators describe you, then you are probably struggling with debt or at the very least are vulnerable to being in debt in the future. However, you do not have to live in debt any longer, and can avoid owing money all together by coming up with a plan. Proverbs 21:5 in your notes says, “If you plan and work hard, you will have plenty; if you get in a hurry, you will end up poor.” Would you underline the words, if you plan and work hard, you will have plenty? What you must understand is that if you want to be debt free, if you want to avoid debt, it will take a major commitment from you. It will require dedication, persistence and faithfulness to a plan. (talk about financial plan I gave them last week, encourage them to do them, to put a plan together to avoid debt) To avoid Debt I must…
DETERMINE TO BE DEBT FREE
Talk about last week, and share about us being in $25,000 debt, Jennifer praying for me to come around. And I came around because of some need in the church.
Acts 4:32 says, “The group of followers all felt the same way about everything. None of them claimed that their possessions were their own, and they shared everything they had with each other.”
That is what made me decide I no longer wanted to live in debt. So I am determined to be debt free. What about you, what will cause you to decide to no longer live in debt? You know, there are many reasons to get out of debt. It helps alleviate stress in your life, makes your marriage stronger, helps us to stop living paycheck to paycheck, gives us the ability to set money aside for rainy days, enables us to prepare for our future, and sets us up so we can honor God with our money. Of all the reasons to get out of debt, to honor God with our money is the greatest reason.
Proverbs 11:24-25 says, “Sometimes you can become rich by being generous or poor by being greedy. Generosity will be rewarded: Give a cup of water, and you will receive a cup of water in return.”
LEARN TO BE CONTENT
Understand something, it is not a sin to buy something on credit. It is just not in your best interest. Using credit cards is not a sin but we should examine our motives when we decide to make a purchase with our credit cards. Because your motivation to use credit might be a sin. You know, in the ten commandments, one of the things that God told us not to do is covet. The word covet is defined this way. To desire enviously what belongs to another. When you are out there shopping, or looking through store sale fliers, do you find yourself coveting what belongs to the store?
And you know, something I came to realize as I was preparing this message, when we buy things on sale, and put it on a credit card, we aren’t really getting it on sale. We didn’t get a good deal. Because the credit card company loans us the money for anywhere from 7% to 23% interest. And if you don’t pay that amount off each month, the longer it is on your credit card, the more you pay for it. The only way we truly get a good deal is by paying cash. (Share about buying furniture at Raymour and Flanigan, how we thought we were getting a good deal at 0% interest, but they just tack the interest on to the price of the furniture)
1 Timothy 6:6-8 says, “And religion does make your life rich, by making you content with what you have. We didn’t bring anything into this world, and we won’t take anything with us when we leave. So we should be satisfied just to have food and clothes.”
You know, most credit card purchases are made on impulse because we think we have to have whatever it is that we are buying. But if we stopped and waited before we swiped that credit card, we might discover that we really don’t need it and can live a very content life without it. And a couple of ways you can learn to be content and not buy on impulse is by cutting up your credit cards.
Another way that I think is great, is put your credit card in a bowl of water and put the bowl in the freezer, so that when you want to buy something, you have to wait for it to thaw, so you give yourself more time to think the purchase over.
Luke 12:29 says, “What I’m trying to do here is get you to relax, not be so preoccupied with getting so you can respond to God’s giving. People who don’t know God and the way he works fuss over these things, but you know both God and how he works. Steep yourself in God-reality, God-initiative, God-provisions. You’ll find all your everyday human concerns will be met. Don’t be afraid of missing out.”
BE WILLING TO HAVE A SALE
Share about moving out of my parents house and selling sports cards to get the security deposit. And Jennifer and I selling one of our cars so she could stay home with Elijah.
Might need to sell some things to help pay down your debt. The question is are you tired of being in debt? Because you know, you don’t have to live in debt anymore and can avoid debt all together by putting together a plan steer clear of it.
Let me ask a question, is there something in your life that if God asked you to sell it, you would be like, I don’t think so? This is an interesting spiritual question. I’m not saying God is telling you to sell it, and I am not saying He didn’t tell you to sell it, but if He did tell you to sell it, is there something that you are protecting? You are like—God, I would sell anything that I have but this. And you hold it really close. If so, you have allowed that some thing to become your God. And you have made that thing into an idol. Instead of worshiping God, you are worshiping stuff. And in order to honor God correctly with our lives and our finances, we cannot allow anything else to be more important than Him. And since debt keeps us from truly honoring God and from being generous with what he has given us, we must be willing to have a sale if God prompts us to do that.
That’s why Ezekiel 20 says, “Get rid of all of your idols.” We have idols all around our apartments, all around our homes. Maybe the best thing that you can do is sell those, put God first in your life and begin to pay down your debt. And maybe you are thinking, man, that is really difficult to do, I am not sure that I can sell my stuff. I am not sure I have the will power to be content with what I have or to cut up my credit cards.
Well, take a look at the memory verse for this week. It is Psalm 37:5. Lets read it together. It says, “Commit everything you do to the Lord. Trust Him and He will help you.”
So what would you home look like if you applied some or all of these tools to your finances? How much more relaxed would your life be if you made a plan to avoid debt? How would avoiding Debt affect your relationship with God? If we all were determined to get out of debt, what impact would that have on our church?
Next steps:
Memorize Psalm 37:5
Determine today to be debt free and set a plan
Cut up my credit cards
Be generous with what God has blessed me with
