Credit, Money and the Home
by: Kimberly Flores
Did you know that money is mentioned in the bible more times that heaven or hell?
Does the idea of telling your spouse what you spent on marketing send chills down your spine? Why? Because you have nothing to show for it…yet?
Do you have a set budget you follow, including your online expenditures? Or, are you just throwing your money at whatever looks provocative at the moment?
Have you found out that PPC (Pay per click) search engines eat your money faster than you can check your credit card balance?
Don’t cry, I’m right there with you. Running up a credit card balance is very scary, hoping against all that your promoting will pay off. It can eventually show some profit if you keep at it, but where is the break-even point?
I know firsthand how this feels. Been there, done that.
Ok, the first thing you MUST DO: STOP USING CREDIT!
If you aren’t seeing any income, stop using your cards and instead set aside an amount in a savings-type account to draw from with a debit card. If you are receiving some commissions, or income, reinvest that rather than put your family’s livelihood on the line.
This is very difficult.
I have come to associate online marketing like gambling. It isn’t a sure thing, so it must be a gamble. This is a sin to me now. I am very cautious about where I put my money. I still invest in advertising mind you but I research it thoroughly.
I have searched and prayed for an answer to this question: “If I am to prosper as promised, I must follow Gods principles or I won’t be entitled to the promise”.
I found this resource that has helped me tremendously: http://www.crown.org/
there aren’t any affiliate links so I don’t get a dime promoting them but I am anyway.
I’ve learned so much from their vast assortment of resources.
I have set a budget and am trying diligently to stick to it, making at least 5% for marketing/advertising.
To quote an article from Crown:
Debt
Nothing in the area of finances has dominated or influenced the direction of our society during the past 50 years as much as debt. However, being debt free is still God’s plan for His people today.
The blessings of becoming debt free go far beyond the financial area; they extend to the spiritual and marital realms as well. No one who is financially bound can be spiritually free. The effects of financial bondage on a marriage relationship are measurable in the statistics of failed marriages.
Approximately 50 percent of all new marriages fail, and finances are listed as the leading cause of divorce by a factor of four to one.
What is debt?
Simply put, debt is something that is owed. The Bible does not prohibit a person from borrowing, but it does warn against surety—taking on debt without an absolutely sure way of paying it back. If collateral used to secure the loan can, in case of default on the loan, cover the balance of the money owed plus interest, the loan is not surety. However, taking into consideration that most debt in America is surety, we need to redefine debt.
Today, debt can be defined as a condition that exists when a loan commitment is not met or when inadequate collateral is pledged to satisfy the loan agreement.
Debt is not credit. Credit is the establishment of a mutual trust relationship between a lender and a borrower. Most often the undisciplined use of credit quickly leads to debt.
Establishing credit.
The best way to establish credit is to borrow against an acceptable asset, such as an existing savings account. Almost any bank will lend money up to the amount that is in the account and charge from 1 to 2 percent more for the loan than the prevailing saving rate. If within a year you pay back the amount borrowed, the total cost for acquiring the loan will be approximately $20. Then, by using the bank as a credit reference, you most likely can qualify for a major credit card, although the credit limit may be the minimum amount.
With disciplined use of the credit card and faithful payment of the bill, credit limits probably will be raised.
The best way to cancel an existing credit card or credit account is first to make sure the account is not delinquent. If it is current, you can send a letter to the accounts department, customer service, or business office of the bank that issued the card and request that your account be cancelled. Because the credit card is the property of the issuing bank, you also will need to cut the cards in half and send the cut cards along with your letter. Generally, banks will not accept a letter of cancellation unless the cut up cards accompany the letter and the account is current. Along with the letter you can either send a check to cover the outstanding balance or request payment arrangements. However, the payment arrangements they offer may or may not be the same as your previous monthly payment requirements.
Common attitudes that lead to debt
1. Ignorance. Many people, especially those in the baby boomer generation, never were trained how to handle money. The philosophy of today’s society is to spend and spend; if you don’t have the money to spend, charge it. If you want it, get it, because you deserve it.
2. Indulgence. In today’s American society we tend to feel that we should get what we want, when we want it. The whole concept of saving in order to buy seems to be a thing of the past.
3. Poor planning. No matter how noble our intentions may be, without a written plan that gauges and monitors income versus expenditures we will eventually find ourselves in debt and having financial troubles.
How to get out of debt
“The prudent sees the evil and hides himself, but the naïve go on, and are punished for it” (Proverbs 22:3). The following are steps that anyone can take to get out of debt and to stay out of debt.
1. Give to God first. The first fruits of all that He gives us—the tithe from our gross income—must be our first commitment. Without faithfully fulfilling this commitment, all other efforts will fail.
2. Stop all forms of borrowing. This includes credit card use, personal bank loans, family loans, student loans, and all consumer credit. The sooner you stop borrowing, the sooner you will be out of debt.
3. Develop a balanced budget. A balanced budget is the primary tool in any family’s plan for managing money. If you are in debt already, the budget will need to be fairly restrictive at least for a while.
4. Work out a pay-back plan with your creditors. Most creditors are more than willing to work with people who honestly want to repay them. Make sure that every creditor gets something, but stay within the guidelines of your budget.
5. Learn to trust God. God knows what you need before you ask, so begin to trust Him for the things you need but can’t afford. Do not charge to get them; wait for God’s provision.
6. Exercise self-discipline as a lifestyle. Curb impulses to buy. If it is not budgeted, don’t buy it.
7. Seek wise counsel. Many people need assistance in establishing and maintaining a budget and working with creditors.
8. Rely on God’s Word. Make all financial decisions based on the principles of God’s Word, not on the world’s financial principles and conventional financial wisdom.
Conclusion
God wants us to live debt free in order to serve Him to the utmost of our abilities and resources. If we are in debt, we are bound to the creditor and are not free to serve God to the utmost. If you are in debt, determine now to get out and stay out. Anyone can become debt free and stay that way, with desire, discipline, and time. With God’s help, it can be done.
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So my friend let us be prosperous in a productive way. I’ve enjoyed sharing my heart with you, forward this to any one you feel can use the stress relief, but leave the resource box intact.
About the Author
Founded by Kimberly Flores: Always looking to make a way in the wilderness. Here to get the information of the Power of the Web into your hands. Seeking out the profitable tools that the budding entrepreneur needs to get an edge. Home Biz Tips - send an email to testedtough@getresponse.com WEB: http://testedtough.com http://infonowservices.com
