Managing money can be a challenge for some people. It can be difficult to figure out how to cover all of your expenses, especially if you are living paycheck to paycheck. This may make it tempting to get a credit card or loan to help cover some of your major expenses. However, there are some reasons this may not be a great idea. First of all, loans and credit cards almost always come with an interest rate, and you may be surprised at how quickly that adds up. This may mean you spend hundreds or even thousands of dollars more than you would have simply paying cash. Secondly, there are some Bible verses that warn against carrying debt.
Believe it or not, the Bible speaks on debt multiple times, in both the Old Testament and New Testament. This means many of these verses apply to those of the Christian faith as well as those who are Jewish. Here are a couple of different Bible verses regarding debt:
"The wicked borrows but does not pay back, but the righteous is generous and gives." Psalm 37:21 "Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, 'Go, and come again, tomorrow I will give it' when you have it with you." Proverbs 3:27-28 "Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed." Romans 13:7
These are just a few of the many verses regarding debt and finances. Being smart with money is mentioned over 30 times, so it is important. If you are someone who believes and follows the Bible, then it's wise to avoid debt whenever possible.
Pay With Cash
The simplest option for avoiding debt is to pay with cash, or in other words pay with only what money you have at the time. Of course, this isn't always an option for most people. After all, things like vehicles and homes can cost a great deal more than what is in our bank account at any given time. For small things, however, try not to spend more money than you have. Try to avoid using a credit card to pay for a new flat screen television or surround sound. These are things you can save up for, but going into debt for items that aren't needed can be a financial mistake, especially if you are unsure that you will be able to pay it off quickly.
Pay Off Your Debts
You may have unpaid medical bills, credit card bills, school loans, or perhaps debt to friends or family. You should do everything in your power to pay these off as soon as you can. Even if you are years away from being debt free, making small monthly contributions to these debts will help you head in the right direction. Sit down and make a list of all your debts. Look closely at your budget to see how much you can contribute to each debt. You might consider cutting things out like cable television or the data plan on your cell phone to save a little money. Not only does paying off your debt relieve a financial burden, it can also help boost your credit score, which is important for acquiring loans for things like vehicles and homes.
Many people in America are swimming in debt. Whether it's due to bad financial decisions or simply coming across hard times in life, getting out of debt when you can is an important financial decision. In the future, avoid putting yourself in debt whenever possible.