Family Finances 1
One poll listed the five major causes of marriage breakup as these: money, poor communication, lack of commitment, change in priorities, and infidelity. Most marriage polls list money as a top cause of problems. This is not surprising. About 43% of American families, like the government itself, spend more than they earn each year. This continues to be true, in spite of financially tough times. An average household carries $8,000 in credit card debt. As a result, personal bankruptcies have doubled in the past decade. In 2003, the total debt for American consumers was $2 trillion, an average of $18,654 per household, not including mortgage debt (another $10 trillion). This was a 41% increase in five years but has doubled since then.
Debt starts in college and never ends. In the 2008-09 academic year student loans grew about 25% over the previous year, to $75.1 billion. Today, two-thirds of college students borrow to pay for college, and their average debt load is $23,186 by the time they graduate, according to an analysis of the government’s National Postsecondary Student Aid Study. The loans were based on the expectation that an education would provide a good paying job and the loan could be paid back. With unemployment at 10% or more, increasingly this is not happening.
In contrast to the ‘norm’, God’s Word warns, “The rich ruleth over the poor, and the borrower is servant to the lender.” (Prov. 22:7) Paul writes, “Owe no man any thing, but to love one another.” (Rom. 13:8) Our family has lived debt-free for 29 years now and can testify this brings with it great peace. First, we don’t have to worry that we can’t make payments and something will be repossessed. Second, the absence of interest payments has allowed us to invest more into the Lord’s work. Laying up treasures in heaven is the greatest investment. Third, this conviction has brought us to prayer more than anything else. If God didn’t provide the money for something we wanted and were praying about, we were confident it wasn’t His will. Our lives are marked with many specific ways God has provided as we determined not to go into debt to meet a need.
So how do you get started living debt-free? I am confident that the first and most important step in living debt-free is to fight covetousness and learn contentment. Paul said, “I have learned, in whatsoever state I am, therewith to be content.” (Phil. 4:11) The pizzazz of the world is appealing, and the need to show others we are successful will inevitably drive one to debt. God has promised to supply all our needs so erase that one from your worry list. God also often gives us ‘extras’ when we wait patiently. But He warns us not to set our heart on any of these things. Instead, “Set your affection on things above.” (Col. 3:2) After all, things cannot satisfy, and will soon pass away.