Tag Archives: debt

The Borrower is the Slave of the Lender

Culture, Daily living,

We wrote yesterday about the need to make good choices. I thought to complement  that article today by delving a little deeper into the financial choices we make, many of which aren’t very good. The wisdom of Solomon is clear:

The rich rules over the poor,
and the borrower is the slave of the lender. (Proverbs 22:7)

That verse is rather startling don’t you think? I mean, it is surprising just how wise it really is; how clearly it describes the relationship between the one who owes and the one who is owed. Think about it. As long as you are in debt to another you are subservient to them. Now, you can pretend otherwise but its clear that the lender controls the borrower.

  • A portion of your work profits belong to the borrower. You debt may be small as a percentage of your income but a portion must always go to the person who loans you money. You work is never entirely your own. We complain about how much money the government takes in taxes but we never stop to think about how much of every dollar goes out the door to pay our debt. Go ahead and figure it out. Divide your total monthly debt payment by your monthly income and see what you get. It may shock you.
  • The borrower defines how much you work. Because your monthly debt is largely a fixed amount, that is, it is not based on how much you work, you must work a certain amount every month just to keep up. If you do not, the debt falls behind and the telephone calls from debt collectors begins. How much more free time would you enjoy if you had less debt?
  • The borrower defines the quality of your life. because you have so much debt that must be paid, there is often little left for the fun things in life. Suddenly simple vacations are out of reach. Dinner out becomes impossible and a night for the family at the movies just cannot happen. Interestingly, debt is usually fixed but income taxes are not. So the more you work, the more the taxes. You still end up with more money but your labors give you less because of an increasing tax burden. So, you work more, see less and struggle. Debt directly affects your life.
  • The borrower is never far away. Those who lend are in the business of making money. The provide you with a product (money) which you must pay for. But fall behind a few days and the calls will begin. They will come in the morning, at lunch, at dinner, while you are tucking the children into bed and right up until the last legal minute. Some call it harassment while others just see it as a way to get paid but in any case the borrower’s breath is always on your neck.

The message is simple: Debt is bad. It is to be avoided at all costs. Solomon had it right. And I don’t think you want to be anyone’s slave!

Black Friday Sales Event

Culture, Daily living,

cashBlack Friday sales are just a week away. By this time next week thousands of shoppers will be flooding into the shops, stores and malls trying to grab up great after Thanksgiving deals. For some people it’s a day of bargain hunting and adventure. For others it’s a great time to stay home and avoid Walmart at all costs. For everyone it is the most dangerous economic day of the year.

Decisions you make on Black Friday will follow you all year. The “deal” you find on Black Friday quickly evaporates if you use a credit card. And forget that junk about paying it off at the end of the month. You and I both know that something always comes up and we let it ride, just one more month. As an example, take a look at this post from a guy who is trying to improve his financial health. It’s astonishing how much we pay in interest payments every month.

Here are a few common sense approaches to commit to now. Decide now to apply a Biblical model to Black Friday.

Continue reading Black Friday Sales Event →

Wednesday Blog Roundup

Personal finances, Web sites, , ,

The blog roundup for this week focuses on money. Yes, that all to scarce yet ubiquitous item that makes itself so important to most people. There is certainly no lack of information on the web about controlling your cash but not all of it is good. We’ll try to offer a selection of the best sites and blogs for your consideration.

I’ll begin with personal finance expert Dave Ramsey. His radio program and speaking engagements have turned Ramsey into something of a cult favorite. I think his advice and encouragement is very good although I am well aware that not everyone agrees with him. Here’s a link to Dave’s 7 Baby Steps to get out of debt. It’s a good place to start and you can explore the site further from that link.

Here’s a bit of a contrarian view about paying off debt from Liz Weston at MSN Money. She argues that we should be selective in which debt we pay off first. Her view is different from Ramsey and certainly worth considering. You can find her article at When paying off debt is a bad idea.”

Here’s a blog that focuses on managing money from a Christian perspective. I know almost nothing about the site or the person but he has a 7 step plan of his own which could prove helpful.

How about a list of 1001 ways to save money? Moolanomy has a list of list to consider.

Frugal Dad (how’s that for a blog name?) suggests using an envelope system to manage your budget. Actually that is also a favorite of Dave Ramsey too. This is a very simple way to take control of your spending.

Here’s a final article, again from Weston at MSN. Her readers shared their dumbest money blunders. Any of you like to chime in?

Please remember, The rich rules over the poor and the borrower is slave of the lender (Proverbs 22:7).

Also Paul’s advice to Timothy “now there is great gain in Godliness with contentment, for we brought nothing into the world and we cannot take anything out of the world.” (1 Timothy 6:6, 7)

Your thoughts, comments and suggestions are always welcomed.

Freedom

Matthew, Romans, , , ,

Romans 5:6, 15-17

Matthew 18:21-35

Independence Day is upon us and we celebrate the founding of our great nation. Marked by outdoor parties with mounds of ribs, beans and potato salad we will stuff ourselves immensely and then settle down to watch a sky-show of fireworks. Many will hardly consider the cost of our Declaration of Independence in 1776. It’s was the ever wise Benjamin Franklin who warned his fellow freedom seekers “We must hang together , gentlemen…else, we shall most assuredly hang separately.” Freedom always comes with a steep price.

As followers of Christ, we are bought with a steep price: Continue reading Freedom →