Escape the Debt Trap”
Romans 13:8, 1 Timothy 6:6-9
Introduction to Series: VIDEO CLIP: “Stanley Johnson” Lending Tree Commercial- :32
“Somebody help me!” Maybe you have seen that clip on TV. Interestingly it is done by a company who claims they will help you by consolidating your debt. But financial experts will tell you that in reality this is a “for-profit” company who takes your debts and stretches them over a number of years actually costing you thousands of more in interest rates over the long run. I’m not sure Stanley or we for that matter need that kind of help!
But let’s face it, handling our finances and balancing our wants and needs is a challenge! Jesus knew that. Take a look at the list up there. I was going to have you guess which topic Jesus spent more time on but since we are in a financial series and since you all are smart people I knew that this would be a no-brainer. But it still may be surprising. But the truth is Jesus spent more time talking about finances & possessions then he did baptism, communion, Bible study or even prayer. Why? Because he knows us! And he knows what a problem this thing we call materialism can be for us. We have bought into the lie that we are going to be here forever so we need to “grab for the gusto,” “get all we can get,” and live for this life because “you only go around once.” Really? That is not what the Bible teaches. In fact, the Bible teaches that this life is just a trial run, a race that ends. And when your time is done and you break the tape and finish this life, then real time begins. So, we want to spend the next five weeks talking about this very pertinent and challenging topic.
And I want you to know that this whole topic is a challenge for me too! In fact, I was thinking how ironic this is that the guy that’s preaching to you about all this, just bought a new house! And that purchase gives us the largest monthly mortgage payment we’ve ever had! Now, I will tell you we’ve planned for this but I want you to know up front that I am not above this struggle. Let’s realize as we start this that debt, money and possession issues are a great equalizer... from pastors to politicians, teachers to truck drivers, accountants to athletes, all of us struggle with this topic. So, the one who speaks to you is listening as well as preaching!
And even though the title of this series is “Escape the debt trap,” we won’t be just talking about financial debt. Our debt goes much deeper than that. We owe a debt to God for making us, and then providing salvation for us that we can never pay. But we can give him a decent return on his investment in us by handling our possessions wisely. So, in the following weeks we will talk about “Understanding your money biblically,” “Gaining your money correctly,” “Spending your money wisely,” and “Giving your money generously.” Now, I want you to understand that I know that one of the biggest complaints against the church from those who are not a part of it, and from some who are, is that “all the church wants is my money.” We have been very deliberate and careful here at Discovery to let you know that is not the case. But, because this topic is a relevant problem, and because Jesus Christ himself makes it a priority in His teaching, we must address it. But... this series will not be all about giving to the church. My prayer is that you will learn some practical principles that will help you in this life and prepare for the life to come! PRAY
Introduction to Sermon:
America is on a buying binge. And what’s amazing is that experts tell us that the borrowing and credit splurge shows no sign of letting up. Staggering though it may seem, families across America have more than $600 billion in credit card debt alone! Our spending is causing incredible problems. Listen to some of these facts from 2002. Over 40% of us spent more than we earned. The average savings rate was a -2.2% That’s minus 2.2%! 95% of all bankruptcies were personal bankruptcies.
Maybe it’s time we got it in our heads that debt is dangerous. Out of control debt fuels desperation, depression and fear. And when those things come into play they put pressure on our relationships and become greater than our faith. The devil is an expert at using our financial stress to steal our joy and damage our seeking God and our confidence in his care! So, let’s start this series by looking first at why we get in debt and then apply come biblical and practical application to escaping the debt trap.
I. Debt Enemies:
I really believe that the devil very cleverly uses at least three enemies to slip under our radar and do his damage when it comes to material possessions. 1. The first is our feelings of inferiority. Something inside whispers to us, “You’ll feel much better if you buy that car or that house or have those clothes.” Many folks struggle with low self-esteem, rejection or some other form of inferiority. And the result is that we’ve come to think that possessions give us security. Proverbs 13:7- “One person pretends to be rich but has nothing. Another looks poor but has great wealth.”(GW) You see the problem is that when you base your security on something that can disappear you’ve got one foot in quick sand. Prov. 23:5- "Riches disappear in the blink of an eye; wealth sprouts wings and flies off into the wild blue yonder."(Msg) Please understand that no matter how much stuff you have, or don’t have, your value is not tied to it. Your true value is that God thinks enough of you to send Jesus to buy you! Buy you back from a sinful life. We all have infinite value regardless of our possessions, because the cost of Jesus’ life means he would rather die than live without us. “You know how full of love and kindness our Lord Jesus Christ was. Though he was very rich, yet for your sakes he became poor, (left heaven) so that by his poverty (His death on the cross) he could make you rich.” (Give you true value.) (2 Cor. 8:9)
2. Feelings of jealousy. We see people who have more than we and we wonder why they do and we don’t. Bob Russell, a preacher in Kentucky, said that when growing up if he saw a friend of his have something and say, for example, “I wish I had a bike like that.” His mother would make him change that and say, “I wish I had a bike like that and I wish he had one better.” She was trying to teach him not to be jealous or resentful over what others have. Our problem is that we have come to believe that possessions give us status. If we just drive the right car, live in the right neighborhood, wear the right clothes.. Then we’ll be thought of as “really something.” The problem with that thinking is that you can always find someone who has a nicer car, house and clothes. Jesus said in Lk. 12:14- “A man’s life does not consist in the abundance of his possessions. (NIV)
3. Feelings of guilt. For example, if we’re struggling to make ends meet, we are tempted to buy on credit in order to provide something we think our spouse or kids want but we can’t afford. Remember a couple of weeks ago when we asked how many things you realistically get off of your wish list? Maybe 10% - if your doing good. And yet studies show that parents give their kids 75% of what they want. It’s teaching them to have unrealistic expectations about what they can afford. Sometimes it’s a salve that we try to apply to the guilt of not investing our time with our family. We begin to think others will think of us as significant if we have or give possessions. There are many who actually think they can buy the love or allegiance of a spouse or child with stuff.
And all of these negatives come out of a mindset that promotes possessions as the answer to contentment. But the richest man that ever lived, King Solomon wrote: It’s foolish to think wealth brings happiness."(Ecc. 5:10 - LB) Being in constant debt is dangerous.. It hurts our finances, our families and our faith.
II. Debt Escape:
So, what can we do? Millions are suffering the ill effects of debt and see no cure or hope. But with God there is always hope. There is always an escape route, a way out, because God’s word, the Bible promises it. 1 Cor. 10:13 - “... you can trust God, who will not permit you to be tempted more than you can stand. But when you are tempted, he will provide a way to escape. If you take it, you will not fall.”(CEV) God has provided a way out of every temptation and the enticement to spend more than you own is no different. Let’s look at four things to do.
1. Reorient your thinking. This is where it all starts. The first step is to admit how we got in this credit mess. And let’s be honest.. The basic reason is that our desire for stuff gets out of control. I.e., we want more than we can afford. And don’t think the financial world doesn’t know our weakness.
That’s why in last year banks sent out 5 billion pieces of mail to convince you to add just one more credit card to your wallet. After all, “What’s in your wallet?” Apparently it’s credit cards! How many of you here get letters that offer you more credit cards? Oh, they tell me I am a preferred customer! And of course they say that because of my outstanding credit rating they are willing to trust me with maximum purchasing power. What hype! But they know what many of us don’t. They know that statistics reveal if they can get a credit card in your hand that you will spend 34% more in a year than you would with cash. The average American credit card holder charges more than $2500 a year on credit cards which has an average interest rate of 18%. Just listen to the following statistics gleaned from applications for a home loan from an unnamed bank. 90% of all applicants have a minimum of 4 credit cards and 3 out of 4 are at maxed. 82% of all applicants have 2 car payments, the average payment being $396 for 48 months. 1/3 of the younger adults have overdrawn their checking account 90 days before the loan appointment. Get this: Of those applying.. it would take an average of 6 years for each individual to pay off their consumer debt.. debt other than a house- if they stopped charging today and added nothing to their credit cards, it would take 6 years!
How did we get there? The Bible tells us the truth. “...we are tempted when we are drawn away and trapped by our own desires. These desires conceive and give birth to sin..” James 1:13 (GN) Our desires trap us.. wanting more and buying more than we can afford. Allowing evil desires like greed, desire for status and failing to see true value has got us here. So, we must reorient our thinking. First by admitting the real problem.. It’s us and our desires.
Secondly, we need to acknowledge that the cure begins in your mind.. change the way you think! For example: Decide from now on that you are going to think before you spend. Think through the benefits or disadvantages of the proposed purchase before buying. Ask yourself, “If my income dropped suddenly and I needed to sell this item, would I be able to pay off the debt with that sale?” Each time you think about buying something rehearse the positive side of being out of debt. Does this purchase mean more to you than that? And acquaint yourself with scripture, God’s way and thoughts about finances. “It is better to be poor and know the Lord than to be rich and live without him.” (Pro. 15:16 TEV) “Don’t be obsessed with getting more material things. Be relaxed with what you have. Since God assured us, “I’ll never let you down, never walk off and leave you..”(Heb. 13:5 Msg) “Tell those who have the riches of this world not to be arrogant and not to place their confidence in anything as uncertain as riches. Instead, they should place their confidence in God who richly provides us with everything to enjoy.” (1 Timothy 6:17 GW) Don’t ever forget God wants your best. Not the oppression of debt but the freedom of contentment.
3rdly, under reorienting your thinking, know and accept the Biblical facts about debt. Scripture cautions us about wanting to get rich so much that we fall into the trap of debt and wander from God. Look at the 1 Tim. passage on your insert. “But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that. People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” (1 Tim. 6:6-9 NIV)
But, even with that warning, the Bible doesn’t say that debt is a sin. It is not a sin to borrow the money to build a church building, purchase a house or buy a car. Duet. 15:8- "Lend money to others that need it."(GN) The Bible wouldn’t command us to do something that would make another person sin. But it does remind us again & again, whatever debt you incur you pay back as quickly as you can. Rom.13:7-8- "Pay all your debts, except the debt of love for others. You can never finish paying that!"(NLT) So, debt is not a sin but debt can cause enormous problems. Reorient your thinking.
2. Resolve to stop the bleeding. If this is a problem for you my prayer is that today is the day that you say, “Things are going to be different. Today I resolve to stop getting further and further in debt.” Yes, you owe what you owe.. But you don’t have to owe more. Maybe you need to say, “From now on, if I can’t buy it with cash, I won’t buy it.” Cut up your cards, pay only with cash. Whatever it takes, stop getting in deeper.
And that means some new rules for credit card use. Now, just as the Bible does not say debt is a sin, it also does not say using credit cards are a sin. Credit cards can help you establish credit & keep records. They can be a valuable asset if used correctly. How do you use them correctly? 1. Pay off the entire balance every month. The first month you cannot or don’t pay off the balance you should stop using the card until it’s paid off. There are certain cards and certainly payment plans that will not let you charge if you have an outstanding balance. That’s a good way to impose some self-discipline. 2. Use the card only when necessary. Credit cards make it so easy to overspend. In fact, the banking & credit industry is counting on your lack of discipline! Remind yourself that a credit card is just putting off the inevitable. If you can’t afford it with cash, even though the store will let you use your card, don’t buy it! Always remember, it’s a credit card, not a debt card.
Next, strategically develop a written repayment plan. In other words, draw up a plan that where you will begin to pay off your debts. Know, that means you must know what you owe! You need to know an exact amount so you can create a plan to pay it off. Your first priority in this plan must be your secured assets. These are the items you lose to the lender if you don’t pay them off in time.. your house, your car, etc. Then, your next priority is to repay your debt on your unsecured purchases. Typically, the lenders for these items will work with you as long as you talk to them, tell them your situation and pay them something regularly. Consider doubling up on your payments. You say, “How can I do that?” You’d be surprised.. Eat out less often, buy less expensive items, make what you wear and use last longer. Little things. But whatever you do, write out a plan for repayment. Each bill paid off will bring satisfaction and... more money to pay off the remaining debts.
3. So reorient your thinking, resolve to stop the bleeding and thirdly, Regulate your spending. First, declare a moratorium, a stop to all impulse buying. Modern marketing methods capitalize on our impulsive buying nature. One husband said his wife’s credit card was stolen but he didn’t turn it in because the thieves were buying less than his wife. But, hold on guys! Larry Burkett said that after years of counseling with families and their finances that men are more of a problem than women. The wives buy impulsively but the men tend to buy impulsively and extravagantly, maybe not quite as often but for them it’s a boat.. a truck, a big screen TV, a “high-tech,” high-priced toy. One pastor suggested: “To fend of impulsive spending make this pact with your family. No unplanned purchases will be made until you have left the store for at least four hours. Thinking while you’re away about whether you can afford the purchase.” You know what? When I think of the times I’ve fallen prey to impulsive spending.. I see some software I’d like or a book that looks good.. If I would of left the store for four hours doing something else, I bet I wouldn’t of bought even 1/3 of what I did impulsively.
Second under this step, develop a savings plan. One of the reasons we get into debt is we spend and spend without ever thinking what will happen if something goes wrong.. some emergency. So, first create an “uh-oh” fund. This is money you will use when something breaks or something unexpected happens. Put whatever you can into this fund.. Even if it’s only $10 a month. Save until you’ve put $1000 in that fund. This will bring great satisfaction but remember, when you spend some of it start replacing it. Then, after establishing your emergency fund, prioritize your long term goals. Even if you have never saved a penny before this, it’s never too late to start. In this scenario it is “better late than never.” Things like education for your children, special vacations, retirement, all should be in your savings plan. Remember, once you get your debt down, you’ll have more money for savings.
Thirdly, under this step. Design a system of accurate records. Basically, follow the plans you have made. Like Nike suggests.. “Just do it!” But here’s a couple of tips from Dr. Kregg Hood, a Christian financial planner. 1. Balance your checkbook. A CNN poll revealed some time ago that only 40% of Americans don’t balance their checkbooks. This can be especially crucial if you use an ATM card for cash or use it for purchases. 2. Create a.. here comes the “B” word.. Budget. A lot of us hate that word because we think it implies restriction but it’s really just smart! It doesn’t have to be complex.. Make a list of all your expenses. Next, a list of your income. Now, establish some goals of spending. Make a priority of what must be spent first.. Your monthly fixed expenses, i.e, mortgage, car payment, credit card payment. Then monthly expenses that vary in amount.. Groceries, gas for the car, etc. Now, look what remains. Anything? If not, then you’ve got your budget. If you do have some left over decide what you will spend and what you will save.
If this is too complex then use the envelope plan. This is one of the oldest but most efficient ways to control of your spending. There is even software with this system in mind. The envelope system works this way. Label separate envelopes for each category of spending that you have that are not fixed expenses like house payment, car payment, utilities etc. But make envelopes for such things as groceries, gas for the car, recreation, eating out, etc. At the start of each pay period cash your check(s) and place enough cash in each envelope to cover your planned spending. Then when it comes time to pay those things, i.e., groceries, take out what you need. But remember, when that envelope is empty, no more groceries, unless you rob from another envelope like recreation, that’s your choice. But don’t forget that the amount in the envelopes must cover you until you get paid again. Now, here’s the trick.. If you have some left over in your envelopes, don’t spend it! Put it in your savings account! But no matter how you do it, keep some kind of record of your spending. It’s the way as the old saying goes, “you plan your work and then you work your plan.”
Now, I know we’ve just scratched the surface today. We’ll spend more time on some of these things as we talk further in the weeks to come. But to close let me suggest one more step: Reach out for help. If you are in over your head or you listen to this and feel like it’s too late then there are some resources to help you that we can recommend. And you can contact these no matter where you financial situation lies.
Crown financial ministries was founded by the late Larry Burkett. It’s a Christian company that specializes in helping people in their financial planning from budgets to retirement. I’ve printed the web site address for them. Also Turning Point Financial Counseling. A highly rated Christian company that specializes in debt management. And Good Sense Ministry a outreach of Willow Creek. They have seminars that help people with their finances using some of the very biblical principles we have talked about today. In fact, if God is laying upon your heart a desire to serve in a ministry for Discovery in this area, the Good Sense Ministry seminars train financial counselors to come back and serve in the church. But this is no time to be proud.. Come talk to us or contact some of these experts in the field. We and they want to help.
But never forget, the one essential ingredient to a successful escape from the Debt trap is God. I hope you’ve seen or been reminded again today that God wants your best. Your confidence in him will be richly rewarded beyond money. And He says our loving Heavenly Father tell us: “Godliness with contentment is great gain.”
