(Power point available)
SLIDE 1
A recent government report with a boatload of statistics reveals people owe for a lot of big things other than houses.
These debts all need to be repaid, and meanwhile finance companies are pulling in a lot of interest payments from the loans, which total well over a trillion dollars.
Of course, we had seven years of prosperity since the last recession, so there’s no doubt that all debts will be settled, right? But last year set a record for the number of personal bankruptcies filed! This year may break that record.
So what do these statistics say to you?
SLIDE 2
In the American religion of materialism, there are two words more sacred than any other: "Charge it!" Yet, consider the following two scenarios in evaluating the intelligence of using plastic:
1. Ellin is 30 years old. She has a $3,500 balance on her Citibank credit card at 18% interest. She makes the minimum payment each month. How old will she be when she has her credit card paid off? [70 years old]
2. Susan and Tom needed a new washing machine, so they went to Sears and found one for $299. They got a Sears charge card and made the minimum payment each month. By the time the washing machine was paid off, how much did Susan and Tom actually pay for that washing machine? [$1,199]
Debt has become as American as apple pie.
According to one bank’s research of 1996 applicants for home loans, they found that:
· 90 % of applicants had a minimum of 4 credit cards
· 3 of the 4 cards were at the maximum allowable limit
· 82 % of the applicants had 2 car payments; the average payment was $326 for 48 months
· 70% of all applicants showed some late payments on their credit reports
· When faced with the decision to keep a new car or sell it in order to qualify for a home loan, 50% of young adult 1st time home buyers chose to keep the car and continue renting
· and 32% of the young adults applying had overdrawn their checking account less than 90 days prior to the date of application
(source: Bob Russell, preaching minister at the SouthEast Christian Church in Louisville, KY)
It reminds me of the true story a meat store owner told some time back:
The owner said: “one day a customer informed me she had gotten some unexpected money and wanted to fill her freezer. She picked out about $200 worth of meat and handed me her credit card."
Laughing, the owner said: "I thought you got some unexpected money."
"I did," she replied. "They raised the limit on my credit card."
We live in a culture based on instant gratification. Buy now – pay later. Of course, this causes enormous problems not only in culture but also in our individual families and lives. Consumer debt in America now stands at trillions of dollars. That’s not what the government owes. That’s what you and I owe.
So today I’m continuing the series “Getting a Grip on My Finances”. I want us to look at the warning signs of entering the debt zone.
SLIDE 3
The debt zone is a trap because it enslaves you. When you go in debt, you loose your freedom. The Bible tells us in Proverbs 22:7 “The borrower is the servant to the lender.” Any time you take a loan, any time you go in debt to someone or some company, you are, in a sense, becoming a servant to them because you’re obligated to those people. It becomes a very major trap that many people can never get out of.
SLIDE 4
Here is a stack of the credit card and loan applications that I received in the mail just this week. Each of them has some specific way of trying to entice me to apply for their card. [give examples of some of them]
Whenever you read one of these ads, there’s one word you’ll never find in any credit application or credit advertisement. It a word that we don’t like in credit ads. It’s the word “debt”.
SLIDE 5
In Roget’s Thesaurus: Here are the synonyms for debt:
SLIDE 6
o to owe,
o to be obligated,
o liable,
o in deficit,
o in default
o insolvent,
o encumbered
o in over one’s head
o tied up
o out of pocket
SLIDE 7
o in arrears,
o indigent
o paupered
o destitute,
o penniless
o needy,
o lacking
o distressed
o in difficulty,
o a deadbeat
SLIDE 8
o having a wolf at your door,
o living hand to mouth
o beggarly,
o emptied
o having seen better days,
o gone to the dogs
o racked and ruined,
o impoverished
o bad off
o hard up
SLIDE 9
o beaten down
o reduced to ruin
o fleeced
o stripped
o bereft,
o bereaved
o reduced
o unable to make ends meet
o embarrassed
o broke, busted.
SLIDE 10
If they told you that this is what they were selling, would you think twice before applying for it?
SLIDE 11
A few years ago that did a movie version of the 60’s TV show “Lost in Space”. One of the main characters is this dorky robot who walks around – his goal in life – saying, “Danger! Will Robinson! Danger!”
Today, I want to be the dorky robot. I want to give you six danger signs that you are in over your head. .
What does the Bible say? Signs of the trap of the debt zone:
SLIDE 12
1. LIVING ON CREDIT INSTEAD OF PAYING CASH.
SLIDE 13
Proverbs 3:27-28 “Don’t withhold repayment of your debts. Don’t say `some other time,’ if you can pay it now.”
How do you know if you’re living on credit? Simple: the balance is going up.
SLIDE 14
It shows a lack of contentment in your life. You can’t wait. You can’t be patient. You can’t save. You have to have it now. It shows a lack of contentment.
Luke 3:14
(Jesus) “Don’t extort others… be content with your pay."
It is a presumption on the future. Proverbs 27:1
Don’t brag about tomorrow, since you don’t know what the day will bring.
SLIDE 16
Studies have shown that if you use a credit card, you’ll spend 23% more money in a store than if you use cash.
SLIDE 17
2. DELAYING PAYMENTS OR PAYING THE MINIMUM DUE.
SLIDE 18
If you find yourself bouncing checks because of insufficient funds. If you find yourself withdrawing money out of your reserve account in order to pay today’s bills.
SLIDE 19
The Bible says in Romans 13:8 "Let no debt remain outstanding.”
SLIDE 20
3. UNABLE TO GIVE BACK TO GOD OR SAVE
If you’re not saving any money, if you’re not giving back to God on a regular basis, you’re spending too much money. We talked about these principles last week.
SLIDE 21
Malachi 3:8 “Will a man rob God? Yet you rob Me. But you ask, `How do we rob You?’ In tithes and offerings.” If I’m not giving back to God, I’m robbing God. I’m using God’s money to pay my bills.
Now I know some of you are thinking it’s not all that important to give back to God. But this morning I’d like you to hear from someone who has learned the importance of giving back to God—and what it took for him to learn that.
SLIDE 22
[FAITH STORY from Pat Lamb]
SLIDE 23
Then the Bible tells us “The wise man saves for the future, but the foolish man spends whatever he gets.” It’s a warning sign that you’re in the debt trap if you can’t do those things.
Along with that….
SLIDE 24
4. UNABLE TO PAY TAXES
You get to April 15 and you don’t have the money to pay your taxes,
SLIDE 25
the Bible says in Matthew 22:21 “Give to Caesar what is Caesar’s and to God what is God’s.” If you can’t pay your taxes that means you’re spending too much money. You are in the debt trap.
SLIDE 26
5. EXTRAVAGANT SPENDING
SLIDE 27
Proverbs 21:17 “Indulging in luxuries, wine, and food will never make you wealthy.” The key word is indulge. I believe that God has given all the blessings of life.
SLIDE 28
Maybe the key is what John Wesley, the Methodist founder and preacher use to teach: ALL THINGS IN MODERATION>
SLIDE 29
Today we have an entire luxury market that targets our mail service with catalogues. I read about a $200 nose-hair remover! Folks! I could show you a much cheaper way to do that but I’m not going to. I could show you how to do that. Who needs a $200 bugger-picker!!
SLIDE 30
6. LOOKING FOR GET RICH QUICK IDEAS
If you’re always looking for get rich quick ideas it means you’re either in debt right now and so you’re trying to get out, you’re headed into debt and those get rich quick ideas will put you in debt. The Bible says run from get rich quick schemes.
SLIDE 31
Proverbs 21:5 “Steady plodding brings prosperity; hasty speculation brings poverty.” When you’re in debt, you’re ripe for a rip off.
SLIDE 32
People often get in debt because they live in a fantasy world. they’re barely making it, waiting for the Big Deal.
SLIDE 33
Some people are always waiting to win the Lotto. There’s a word for people who play the lottery – loser! You are more likely to be hit by a meteor than to win the lottery. The odds are more likely that you will go to the moon than you will win the lottery.
SLIDE 33 A
Or look at this enticement to place a bet on today’s Super Bowl that I received in an email this week: BET THE BOWL TODAY--$50 Free. (yeah, right). Hundreds of ways to bet on the bowl.
Don’t go to Lost Wages for your vacation.
SLIDE 34
Ecclesiastes 5:7 “Dreaming instead of doing is foolishness.” Some of you think, “There’s no way we’re going to get out of debt,”
SLIDE 35
But there is a way out. If you will follow God’s financial plan and the steps to getting out of debt, you can do this.
There is good news if you find yourself trapped in the debt zone. I wish I could tell you how to get out of debt today but if I did the sermon would have 15 points and that would just be too long. But then the next week I could give you a pointless sermon.
So I urge you to return next Sunday as I will talk about 9 steps to moving out of the debt zone based on some Biblical principles. Come on out and hopefully the groundhog won’t see his shadow since next Sunday is Groundhog Day.
SLIDE 36
PRAYER
As I lead this prayer, why don’t you talk to God about your finances? Why don’t you pray this prayer “Dear God, I’m discouraged about my finances. But I do believe that “What is impossible with men is possible with God” Today, I want to give You my financial mess. I want to do it Your way. I want to follow God’s financial plan. So I commit to being here next Sunday to learn from your word how I can get out of this debt trap. I am willing to do, Father, whatever You and Godly counsel tell me to do to get out of this debt trap. I ask for Your help. In Jesus’ name. Amen.”
(Main ideas of this message stimulated by Rick Warren’s taching on Finances)
