Churches Guide Followers Out of Debt

Counselors Draw Lessons from Scripture On Debt and How to Live Within Means







The following is a thought-provoking article written by Betty Lin-Fisher of the Beacon Journal that was published on Sunday, July 27, 2008:

As we continue to take a look at the subject of financial responsibility, are there lessons that can be learned from the religious community?

Many religions, including Judeo-Christian faiths, have deep roots in the idea of stewardship — that money is not owned by people, but given as a resource by God.

Because of that belief, many church leaders preach about stewardship and many churches offer classes and workshops teaching the principles. Many churches also offer free one-on-one financial counseling with trained volunteers.

The Bible teaches followers to be good stewards of their money and not to go into debt, said Michael Ammirati, a volunteer at Hudson Community Chapel who heads the one-on-one financial counseling services.

Pointing to a verse from Proverbs 22:7, ''The rich rule over the poor and the borrower is servant to the lender,'' Ammirati said that verse does not prohibit borrowing, but serves as a reminder that debt can place people in ''bondage.''

Many church-based financial counselors will help people distinguish between acceptable debt (for instance, to buy a house) and unacceptable debt (excessive debt on a credit card for discretionary items).

When money is worshipped instead of God, that's when it differs from biblical teachings.
''It's not that we shouldn't have nice things, but we shouldn't be putting those things before our relationship with [God],'' Ammirati said.

At The Chapel, Benevolence Director Colleen Koladzinski said her staff has seen an increase in people searching for biblical answers to their financial challenges, including ''how God designed us and what the purpose of money is for.''

''We've so lost sight of that. If you asked that question to even Christians, they probably wouldn't be able to tell you,'' Koladzinski said.

Read the full article...

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Debt Quicksand-Six Secrets To Dig Yourself Out

Today, many Americans find themselves in a financial crisis.

Personal bankruptcies are being declared in record numbers with one out of every 100 families experiencing this tragic legal process, according to a survey conducted by American Express.
Although the stigma has lessened, the effects can be long-lasting. Getting a job or an insurance policy can be very difficult if personal records are marred by bankruptcy.

Acquiring material possessions, taking trips to popular vacation destinations or dining out regularly at restaurants will eventually lead to faded memories. But the aftereffects of excessive credit card charges can linger for decades due to the power of compound interest. Paying three to four times the original purchase amount in fees and interest charges is a definite possibility. Making minimum payments on credit cards or other unsecured debt will eventually bury consumers in debt quicksand.

Here are six tips that can help to completely eliminate personal debt if individuals are willing to make some lifestyle changes:

-Itemize debts from the smallest balance to the largest regardless of the interest rates. List the minimum amounts due on each bill. Make the largest payment possible on the smallest debt and make minimum payments on all other consumer debt. Once Debt #1 is fully paid, apply the payment from Debt #1 to Debt #2 (plus its minimum payment). Work through each debt obligation using this strategy until all debt is fully paid. Some financial advisors would suggest reducing high interest rate balances first but the goal here is to gain pay-off victories and to keep momentum rather than being concerned with interest rates. Attempting to pay-off a large, high interest rate balance first could lead to frustration and diffuse any good intentions to eliminate debt.

-Cut up the credit cards. This will take some courage but it's necessary in order to get out of debt completely. If a plastic card is necessary, consider a debit card which acts like cash, not credit.

-Don't borrow by establishing a home equity line of credit. The inability to make these loan payments, could eventually lead to a home going into foreclosure.

-Create a money spending plan (commonly known as a budget) based on the "10-10-80" formula. The first 10% goes to charitable organizations or to a place of worship. The next 10% goes to personal savings. The final 80% is used to pay for basic living expenses. Keep in mind, that these are ideal percentages. Consider lower percentages to start if it's difficult to give or save 10%. The importance is in the order, giving, saving, and spending.

-PAY CASH for things. No cash means no purchase.

-Get debt counseling but be cautious of credit counseling agencies, debt management plans (DMP), debt settlement or debt consolidation companies. There are too many predatory "debt counseling" companies looking to make a fast buck at someone's expense. The best approach is to consult with a financial planner, preferably a CERTIFIED FINANCIAL PLANNER™ professional (CFP®). These individuals have a client's welfare as their top priority. Their fee is a small price to pay if it means getting out of debt permanently.

Making the transition from a credit card debt lifestyle to cash-basis living takes time, effort and discipline but the rewards make it worthwhile.

Digging out of a debt hole requires a change in mindset. If financially distressed individuals are willing to commit to change, the road can eventually lead to financial freedom and peace of mind.

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Insider Truths Of The Wealthy

There is a good article that contains an important belief that is common among individuals who have accumulated significant wealth.

It took me years to realize the full impact of this uncomplicated statement:

"Those who do not promote, market, and sell the value they personally possess, combined with their useful product or service will always be under the control of those who do."

Most wealthy people meet this criteria. Additionally, they typically maintain a debt free lifestyle with the ability to generate significant income despite the influences of other people, the economy, the stock market, and other external factors.

Conversely, individuals who are not self-employed possess value to an employer but they don't meet all of the criteria indicated above.

An employer, not an individual worker, determines:

• Salary
• Raises
• Eligibility for promotion
• Job responsibilities
• Work location
• Hours
• Benefits
• Other employment factors

To read the full article that also includes two common myths about personal wealth and financial freedom, click here.

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DON'T BE EMBARRASSED BY DEBT—YOU'RE NOT ALONE

Heavy debt can trigger a lot of unpleasant emotions. Embarrassment is one of the most common and most dangerous feelings we can experience.
Whether you have to look your kid in the face and tell them you can’t afford to sign them up for their favorite sport this year or your credit card gets rejected by some disdainful teenage teller at the mall because it’s maxed out, debt problems can make the toughest adult turn red in the face and feel like hiding.
This response is natural, but it’s also dangerous because it just makes us want to run away instead of deal with the problem. Americans, in particular, are very secretive about their personal finances, and embarrassment can send them deeper into hiding.
One way to beat your embarrassment so that you can begin to grab the debt bull by the horns is to understand that you are not alone. If you have significant debt, you’re not even in the minority. You’re in the same big boat as most of your countrymen. Here are just a few of the latest indicators:
By age 65, 96% of Americans will either be dead or dead broke! Only 3% will reach financial independence, while only 1% will become rich.
According to the Wall Street Journal, a staggering 70% of Americans live paycheck to paycheck.
The American Bankruptcy Institute lists over 2 million bankruptcies in 2005, a huge 30% increase over 2004 and more than 98% were personal. In the first three months of 2007, bankruptcies were up 66% over the same period last year.
Are you a woman with kids? Then, look out! According to the 2003 book The Two-Income Trap: Why Middle-Class Mothers & Fathers Are Going Broke, having a child is now the single best predictor that a woman will end up in financial collapse. – Harvard Professor Elizabeth Warren and Health Benefits Consultant Amelia Warren Tyagi
This isn’t to say that you should just throw up your hands and sit back because everybody has these problems, but it does mean that there are some pretty wide-spread forces at work that helped you get where you are today. Some of these economic, political, and social forces have quietly slipped into our daily lives. And the better we understand who and what is behind this rampant explosion of personal debt, the better we can begin to bring our personal finances under control and get back on the road to financial freedom.


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Oprah Comments on The Law of Attraction

Oprah is hugely successful. She started her own business many years ago and she's been a continuing inspiration to me and to millions of others around the world. Oprah Winfrey can help you realize that in order to change your life and especially your concerns about getting out of debt, money management and financial security, you should give to yourself, to your family and back to society. This is an inspirational video to those who are ready to take on a new challenge to be successful with money, debt elimination, and other aspects of life in the general.

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