Christian Web Site      
Powered by

Search WWW Search
  Good Debt, Bad DebtMonday, March 4th, 2024  

Many people in the United States have been raised with the belief that you cannot get ahead or be successful without going into debt. Television and magazine ads tell us that we can have, or worse, need, everything that's new, everything that our neighbors have. Yes, they even tell us that our neighbors already have these things when, in fact, our neighbors quite probably could not afford them either. The advertisements tell us that all we need to do is put it on our credit card. The result is that most families today are living in debt for things they didn't need. And, because we bought what we were told we needed with money we have yet to earn, we have lost the ethic of working for what we want.

How much money you make is not what matters. What you do with the money you earn does. If you use credit to buy the latest and greatest items, you are undoubtedly paying more or those items that you would have paid if you purchased them for cash. The result is that you income no longer covers your expenses so the debt cycle grows.

It's true that some debt is good debt. Purchasing an item that will increase in value is a good debt. Securing a mortgage to purchase a home in a good neighborhood is a good debt because a home normally increases in value over time. You can always sell the home and pay off the mortgage debt.

Home equity loans can be considered either a good debt or a bad debt depending on how the money is used. If the money borrowed against the equity you have in your home is used to improve that home, then it is a good debt. A home equity loan becomes a bad debt if the money borrowed is used for such things as a family vacation or any other purpose that doesn't increase the resale value of your home. Always remember that failure to repay a home equity loan is cause for foreclosure on your home. It's foolish to take out a home equity loan for items that aren't needed.

Education loans should only be secured if that is absolutely the only way you can get an education. Starting a new life after graduation can be costly. You will have job hunting expenses, possible relocation costs, the cost of getting an apartment and many other expenses. Your budget will be tight. You could have to spend many years in an uncomfortable financial situation if you have loans to repay as well. If you can get your education while working and pay for that education as you go, you will start your new life on a much more secure footing.

Auto loans seem to have become a way of life in America. Consider them a bad debt. Most people secure an auto loan for 5 years, 60 payments. At the end of that 5 year period, the automobile is usually worth approximately a half of the original price. It's much better to purchase a cheap, but reliable, used car for cash if a car is necessary and save until you can buy a new car without using credit.

If you are already heavily in debt, consider speaking to a Christian debt counselor. Breaking the debt cycle can be a challenge, but the rewards can be so great that it's a challenge that you really need to face.

Site copyright© 2002-2024, Surf-in-the-Spirit. All rights reserved.

  Christian Finance Navigation

    Financial What Ifs
    The Christian And Debt
    Good Debt, Bad Debt
    The Envelope System
    The Household Budget
    Budget With Coupons
    Budget Calculator
    What You Owe
    Honest Treasure
    The Cost Of Raising A Child
    Bank Account Options
    Rich And/Or Poor
    Money When You Die - Humor

4 Steps to Credit Card Freedom
The Problem With Money
Debt to Income Ratio
Debt to Income Ratio Calculator
Make A Financial Map
Financial Planning
A Financial Covenant with God
Lending Money
Charging Interest
Cosigning A Loan
Simple Loan Calculator
Investing In Wall Street

Before You Invest
Investor's Checklist
Should We Save Or Give?
Monthly Savings Calculator
Guidelines For Spending
If You Have...
Finer Than Wealth
The Widow's Offering
Paper - What To Keep
Bible Quotes: Money
Identity Theft
Average Consumers

Net Worth Calculator
Home Mortgage Types
Mortgage Refinance
Should You Refinance?
Mortgage Insurance
Mortgage Payoff Calculator
Home Ownership Advantages
Mortgage Tax Deduction
Reverse Mortgage For Seniors
Retirement Calculator
Materialism, Man and Morality
Giving Less Than a Tithe?
Christian Financial Reading
  Choose A Topic

    Advice For Christians
    Read The Bible Online
    Work And Business
    Christian Charity
    Church Life

Christian Education
Your Environment
Your Finances
Healthy Living

Christian Home
Christian Music
You And The Web

Christian Art And Literature
Just For Teens
Just For Kids
Family Fun
Christian Webmasters

  Other Resources Section


Christian consolidation debt

Drops Hcg

               © 2001-2024  All rights reserved.