Monday, April 06, 2009

How to stay out of debt

Owen Strachan has a very good post about financial strife that many people bring with them to marriage. Debt has a way of creating stress in a marriage and, unfortunately, it is a subject that too few are willing to consider biblically.

In our consumeristic age (now compounded with a growing "government bailout" mentality) the idea that a person should live within his means seems rather quaint. Even Christians are often influenced more by the prevailing cultural attitudes on debt than biblical teaching. Yet, as Proverbs 22:7 summarizes, "the borrower is the slave of the lender."

I ran the following clip in 2007. It is still funny. And it still communicates the kind of practical wisdom that the Bible commends and that is far from common in our day.



Jerry Brewer said...

That will preach! Unfortunately, it was better received by the audience of SNL than the same Truth from the Word of God would be by many in the church. Thanks for the video.

David McCrory said...

I still appreciate the old saying my father taught me. Here's Economics 101 -

"When your outgo exceeds your income, your upkeep will be your downfall!"

jigawatt said...

Great video, Tom. Unfortunately it characterizes way too many people in the US today.

Ok anyone who's a wizard with economics, help me out here. The idea put forth by the video and by all the Dave Ramsey's of the world is to save money and buy as little on credit as possible. But when I listen to the news, they act like our economy is utterly dependant on people taking out loans to buy stuff. So if everyone saved their money and had next-to-no debt, what would happen?

Tim Faulted said...

Jigawatt, Our current US economy is based on the idea of credit spending. So the pundits are right, saving rather than buying will currently hurt our economy. But this model is flawed, that why its going down the tubes.

If everyone saved their money, eventually there would be no need for credit, and we could develop a stabilized economy again.

pregador27 said...

My wife and I are going through the Dave Ramsey courses (Financial Peace University). We have changed our spending habits in a major way. We have a way to go, but debt-free is where I have always wanted to be. I wish we would have learned these things when we were first married!

As for the economy- it's ruined no matter what (for now). Until politicians learn to quit spending money we do not really have our nation will dig a deeper financial hole. More people saving and becoming debt-free would force their hand a bit.