Be the master of your debt

Good credit establishes your future buying power. But when you misuse debt, you experience anxiety each month as you pull the envelope from the mailbox with the credit card bill that says you’ve spent more than you can afford. And what about the unexpected challenges of life? Your car needs a new transmission, or you need a medical procedure not covered by insurance. The things you buy don’t just cost you money; there are other less tangible costs such as your peace of mind and your sense of security. You forfeit these things when you continue to live beyond your means and throw good money after bad debt by taking out “interest-only” loans, no-down-payment financing, and other seemingly easy financing options. Like a juggler, you keep the plates in the air by making minimum payments each month. But eventually, you get tired of the stress and the plates begin to fall. You borrow money to stay afloat and then spend sleepless nights wondering how you’ll be able to keep up with the payments. Your embarrassment only compounds the situation as you hide your financial problems and put on a good face, cutting yourself off from the help you desperately need. If you’re in debt, what’s the solution? (1) Identify the emotions that led you to purchase items you couldn’t afford in order to fill some unnamed hole within you. (2) Live on a budget. “There is desirable treasure…in the dwelling of the wise, but a foolish man squanders it” (Proverbs 21:20 NKJV). (3) Develop a plan for getting out of debt and staying out of it!