Debt is everywhere, from top to bottom.
Land – has accumulated an unprecedented amount of debt in the last ten years, and the amount of debt has increased in the last 5 years.
Companies – from the largest corporations to small businesses – borrow money to pay for wages, inventory, and expansion, thinking that maximizing leverage makes sense.
Credit cards are the second most used financial product among small businesses.
In 2009, an estimated 64% of small businesses (companies with 1 to 50 employees) used commercial credit cards for loans or transactions.
These shocking statistics show that the debt burden of personal consumers is unprecedented.
The median credit card debt of US households is $ 15,956.
Total US credit card debt: $ 801 billion
Total US Consumer Debt: $ 2.43 Trillion
It seems that we are indeed in a very turbulent situation because of choices made from the country’s highest level to the individual!
What Does the Bible Say About Debt?
God warns us of the danger of debt in many scriptures … Here are some:
When we owe others, we are their slaves:
- The rich rule the poor, the borrower is the lender’s servant, and the borrower is the lender’s slave. (Proverbs 22: 7)
- We have to pay back the borrowed money:
- The wicked do not borrow to repay the debt, but the righteous give generously (Psalm 37:21)
- Whether as individuals or as a country, we should all be lenders rather than borrowers:
- Don’t give up on the person who wants to borrow money from you to someone asking you. Matthew 5:42)
- Because the Lord your God will bless you as you have promised, you will lend to many countries, but you will borrow money from every country. You will rule many countries, but no country will rule you. Deuteronomy 15: 6)
Debt resolution (wealth method)
Many articles and programs teach you how to live responsibly, cut credit cards, consolidate debt, and basically live like a poor person until the debt is paid off.
I agree that you should always live within your means. I agree that this is a principle of prosperity … but two aspects of the equation are often overlooked here. Most debt relief programs focus only on expenses (spend less money, no credit cards, no meals, etc.). The other side of the equation is the income side.
I propose a balanced approach: live responsibly and do not take on new debt, but at the same time look for ways to increase income.
Some possible ways are:
Take a second part-time job.
This can only be used as a “quick fix” to the debt problem, as the second part-time job will only provide that temporary income while you work. In an emergency, this may be the best approach.
Improve your skills
You may want to consider returning to school or participating in a special training program to improve your skills and increase your income. However, for most people in debt, this is not a viable option, as they will have to incur more debt to attend school (student loans, for example), and the return on higher-income will take months or even years. It Will not happen.
Start a business
One of the main tenants of our welfare plan is to have your own business. We learn: “If you don’t have a field, you can’t harvest it !!” (see related articles on our blog).
Obviously, I am not recommending starting the business from scratch (high failure rate and high risk) or even buying franchise rights (low failure rate, but still requires a lot of investment). However, there are now many home business options available to you. These opportunities allow you to generate more income from home and part-time jobs with meager initial investment and overhead.
Most of these “home-based business” options are in the “direct selling” industry, which has experienced robust growth even during the recent recession. In fact, the direct selling industry has been growing for 20 consecutive years, with 175,000 people joining direct selling companies every week in the United States alone (500,000 worldwide).
For hours you spend on “part-time” (i.e., temporary income), you can invest in setting up your own income-generating business that can create a residual flow after you quit your job.
This choice should not be ignored as it has helped many people from different backgrounds to thrive in this difficult economy under different circumstances. Of course, there are many business opportunities for families and bad business opportunities. Make sure to research your opportunities before investing, and make sure you get the right training and support to ensure success.