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By Zandile Shaba

Personal Debt Crisis!

The number one issue that people with problems approach me for is related to debt. Being an ex-banker I have personally witnessed how people can be ruined by too much debt. When debt is uncontrolled it can lead to financial destruction, business failure, failed marriages and family distress.

What does the bible say about debt? Well, here are some scriptures that will give you an idea;

Deuteronomy 15:6

For the Lord your God will bless you as He has promised you, and you will lend to many nations, but you will not borrow; and you will rule over many nations, but they will not rule over you

Proverbs 22:7

The rich rules over the poor, and the borrower becomes the lenders slave.

Romans 13:8

Owe nothing to anyone except to love one another; for he who loves his neighbor has fulfilled the law.

From the above scriptures it is clear that although the bible does not specifically prohibit debt, it certainly does not have anything good to say about it. Gods best is for us to live debt free. Debt is not Gods idea, but mans idea. He has provided everything for us that pertains to life and Godliness. The reality is that nowadays it is becoming more and more difficult to live without debt. In some countries, it is almost impossible to operate without a credit card. In fact you actually need a credit card in order for you build a credible credit record. In Zambia what we have are loan sharks that are charging rates such as 30% per month! That is a per annum interest rate of over 360%! If you borrow from these guys you certainly qualify for the months award for What were you thinking?.

So why do we get into debt?

1. The number one reason is premature lifestyle enhancement. We would rather buy today rather than save until we have enough money to buy what we want. Most of the debt that I acquired in the past was for things that I could have avoided. I really did not need that new car at the time that I acquired it. But I wanted it now. It took me a while to work my way out of that debt!

2. Competing with others we want to be better than our neighbors, friends colleagues etc. Remember that the people you are trying to impress will not be there to bail you out when you declare bankruptcy.

3. Low self esteem – we try to build ourselves by acquiring stuff

4. Interest rates are low therefore it makes sense to borrow -Many have borrowed on the basis of low interest rates and got their fingers severely burnt when interest rates went up or the currency strengthened. The sub-prime mortgage crisis is a case in point. Circumstances can change, sometimes overnight. What makes sense today may not make sense tomorrow and if you are in debt it is difficult to exit a position you would have tied yourself into.

In the book Business by the Book by Larry Burket (1998), he gives the following guidelines for borrowing;

1. Dont borrow needlessly ask yourself whether the borrowing is really necessary. The first choice should always be to wait and save.

2. Avoid guaranteeing anyones debt . Proverbs 6 vs 1-3 says

My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, you have been trapped by what you said, ensnared by the words of your mouth. So do this, my son, to free yourself, since you have fallen into your neighbors hands: Goto the point of exhaustionand give your neighbor no rest!

3. When you borrow, you must repay. Psalm 37 vs 21 says The wicked borrows and does not pay back, but the righteous is gracious and gives.

As Christians we need to take whatever steps we can to re-pay our debts. I personally have stopped lending to Christians because in almost ALL cases, I was never re-paid. I soon learned that if I have the money I would rather give it away. Otherwise, I simply say no. Proverbs 22 vs 7 says that the borrower becomes a slave to the lender, so I would rather not be in the slave trade business.

Another tip I can add is talk to someone first before signing off on that debt deal. Proverbs 11 vs 14 says Where no counsel is, the people fall: but in the multitude of counsellors there is safety. Sometime wise counsel can help you snap out of that pressure mode where you feel you must have it now.

Zandile Shaba

Lusaka, Zambia

Success for Me!

Phone: +12292990443, Email: successforme101@yahoo.com

W: http://www.successforme.org F: http://www.facebook.com/successforme.org

Reference

Burkett, L. (1998). Business by the book: The complete guide of biblical principles for the workplace. Nashville, TN: Thomas Nelson, Inc.

About the Author: Zandile Shaba is an ex-banker who decided to step out on her own and set up a successful home based business in the personal development industry. She is studying for her doctorate in Business Administration. She has a passion for helping others achieve their own success.

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