What is debt? I am sure some people can make debt work for them, but I don’t think the average person can use debt to their advantage. Just like this post’s picture, when you send money to a credit card company every month, I think it’s just as bad as burning your money. I believe there are two definition of what debt is, they are:
- Debt is a slave
- Debt is a prison
First, lets start off with debt is a slave. Why would I say debt is a slave, because it says so in the Bible. In Proverbs 22:7, it says “The rich rule over the poor, and the borrower is slave to the lender.” When you are in debt, any kind of debt, whether it’s a mortgage, car loan, credit cards or student loans you are actually in a prison. When you enter into that relationship, you as the borrower are the slave, and the bank or credit card company is the lender. It’s kind of like a master and slave relationship, the bank is the master and you are the slave and just like in that relationship, the slave can really not do anything he or she wants to.
Second, debt is a prison. Why would I say debt is a prison? Think about it, can a pensioner, go out to eat, go watch a movie with friends, or go on vacation? Let me ask you, do you think a person can do those things if a person is up to their eyeballs in debt? Let’s talk about the Smith family, the dad makes $3,000 a month. They have to pay their taxes which is $750, their tithe is $300, their house payment is $500. They still have student loans from 5 years ago, that $170, then there two car payments which equal $400. They have 5 credit cards totaling $350. After all payments have been made, they would have $530 left to spend for that month. That’s a lot of payments, and I haven’t even taken out for food, gas or savings.
You may be thinking, but you were talking about debt being a prison, then you have gone off and rattled these numbers off to us. Hang on, I’ll get to that in a second. The student loans plus the cars, plus the five credit cards total $920. So this family is spending over $900 every month to other people. Imagine what you could do with $900 every month because you had no bills besides your mortgage. Now I like Disney a lot, I could take a nice trip to Disney in 4 to 5 months and not have to worry about paying off the trip because I saved the money to go versus charging the vacation to a credit card and then take a year to pay the trip off. This is what I mean by debt being a prison. When you are giving other people your hard-earned money, you can’t live free. Learn more about how to attack your debt next week.
P.S. This is the first post about finances for this blog. I want to teach people how to handle there finances more efficiently so we can give, invest for the feature, and live a life free of debt.
Thanks for reading, I would love to know your thoughts on this article, please comment below. If you could share the article with your friends, you can do that below too.