Memory verse: Everything in the heavens and earth is yours, O Lord, and this is your kingdom. We adore you as being in control of everything. 1 Chronicles 29:11
Memory verse 2: “Just as the rich rule the poor, so the borrower is servant to the lender” Proverbs 22:7
We have talked alot about how the bible views debt as slavery. And this is one of the main reasons it is so imperative that we strive to get out. But the bible also warns us of something else. Presumption. Presumption is assuming will happen in the future. Read what James writes about this.
“come now, you who say, ‘Today or tomorrow, we shall go to such and such a city, and spend a year there, and engage in business and make a profit.’ Yet you do not know what your life will be like tomorrow…..Instead, you ought to say, ‘if the Lord wills, we shall live and also do this or that” James 4:13
What James is saying here is we cannot assume that tomorrow will be the same as today. We may lose our job, we may be unable to work for some reason, our source of income may be lessened or lost. I have witnessed many couples buy a house and a car, based off their combined incomes, then they have a baby, make less income because of it, and have to sell and downsize. We cannot assume the ability to pay off a debt, therefore we should avoid this possibility.
And interestingly, God leaves no stone un-turned when talking about our finances. Did you know that He even talks about co-signing?
“it is poor judgement to guarantee another person’s debt or put up security for a friend” Proverbs 17:18 NLT
“it is poor judgement to cosign another’s note, to become responsible for his debts” Proverbs 17:18 LB
Again, God is not calling it sin to be in debt, or be security for someone elses debt. But He does warn us that it is dangerous. The average in North America for the co-signer to have to pay for the loan because the borrower couldn’t pay is 50%. That’s half of the loans. That’s very good odds that it will happen to you. Ask yourself if you can afford another 300 dollar payment or 1000 dollar payment over and above what you are doing now. This is exactly the risk if you co-sign. Now i know that if you are like me, my parents co-signed for my first car loan, and I appreciated that. However, if we really want to do things God’s way, we need to teach our kids to save money and buy according to what they have, rather than learning to assume debts. Learning to save money, in my opinion, is the second most important financial skill you need to learn. (the first being tithing)
Practical homework: click on the link below and print off the sheet. Fill out the debt list with complete detail. List every possible debt from your home mortgage to the $5 you owe your mom. This may require a little research.
Tomorrow, we review the plan to get out of debt. See you then!
Prayer: God thank you for this day. God your word says that a tomorrow is not guaranteed, so help us live to the fullest today. In Jesus name, amen.