Getting Out of Debt
Over the years we have worked with hundreds of bankers throughout the Southeast.
One thing I learned very early was that all bankers are not created equal. Some
are brilliant financial people who handle their customers' money (as well as
their own) with skill and expertise. Others may be skilled bankers' but they
aren't very adept at managing their own assets.
I learned about just such a situation during an informal meeting with the
president of one of our banks several years ago. President Jones was worried
about what to do with Robert, one of his senior vice presidents. Robert was a
great guy who appeared to the outside world as a man who really had it all
together. He was handsome and talented, respected by his peers and the
community, a loving family man, in general, he was a good old soul. But on this
particular day, Jones was worried about a personal difficulty that was
interfering with Robert's professional responsibilities. He feared this burden
might destroy Robert's career. What was Robert's problem? It was too much
personal debt. Jones explained that Robert had gotten involved in a number of
leveraged real estate deals that had not worked out. Now he was drowning in
debt. Jones simply didn't know what to do about the problem. After all, Robert
was a banker himself. He understood things like money, debt, and leverage. He
knew better than to get in to such a predicament but here he was.
You're Not Alone
I shared this story because I want you to know that debt problems don't just
happen to uneducated folks. Bright, suave, business tycoons and financiers fall
into the debt trap. Borrowing, and the associated problems it can bring, affects
people in all walks of life. Today, if you're struggling with debt, I want you
to know that you're not alone, not by a long shot. Total household debt in
America topped 100% of total disposable income for the first time in 2000. As of
2005 Americans began spending more than we made for the first time since the
Great Depression! At over 2 trillion dollars per year, we are now spending more
on credit cards than we are with cash! The average family with credit card debt
is now carrying a balance of $8,000 to $12,000.
Is It Wrong To Borrow Money?
This is the first question I want to address because there is a lot of confusion
(especially among Christians) about the whole issue of borrowing and debt.
Today, many Christians believe that the Bible teaches that borrowing is a sin.
Despite their good intentions (and, best efforts) I don't think they can prove
their point biblically. Some people have turned to a comment that Paul makes in
Romans 13:8 to make their case, "Owe nothing to anyone except to love one
another." However, a closer reading of this passage makes clear that the apostle
is encouraging the Christians in Rome to be good, obedient, honest citizens.
Specifically, he is telling them to pay their taxes as they should. He sums up
by telling them to pay their taxes honorably and "owe nothing to anyone." I
simply disagree with those who would point to this verse as a prohibition to
borrowing money. If anything, it seems to support the idea that Christians
should always fulfill their debts and live up to their obligations.
But, again, all of this should not obscure the most important point: While the
Bible may not prohibit all forms of borrowing, there are plenty of peripheral
teachings that should cause one to think hard before getting into debt. There
are two questions to ask before we borrow:
Click here to learn more about the 19-chapter book, No Debt, No Sweat!