Debt! Debt! Debt!

I’ve read several articles and books on how much debt is acceptable.  Some state that debt should be no more than 5% of your income; others state you should not have debt at all.  There may be times when you feel you must go into debt in order to better your life such as a school loan.  Remember though…

The rich rule over the poor and the borrower is servant to the lender. 
Proverbs 22:7

If you owe a car loan to Bank of America, then you are a servant to Bank of America.  If you thought you really needed that treadmill and completed a loan through Sears because you didn’t have the cash, then you are a servant to Sears.   

Debt will play a part in decisions you make.  It can prevent you from spending time with your children because you are working extra hours.  It can cause stress and arguments with your spouse when you realize you can’t afford to pay a babysitter and go on a date BECAUSE you have that credit card payment to make. 

DEBT EXAMPLES:  car loans, credit card, second mortgage, school loan, loan from family, “no payments until 2009” furniture loans, car title loan, pawn shop loan

I challenge you to get out of debt.  If a store offers you no payments until 2010, RUN!  You may have to thrown a blanket over the old couch you were looking to replace but if you have no cash…do you really want to be a servant to Rooms To Go?
Thanks for listening!  Dana

p.s.  Mortgage loans are also considered debt but I’ll address smart ways of having that loan in a later post.

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