My brother cannot get a loan on his own and he has asked me to co-sign. Should I do it?
If your brother cannot get a loan on his own there is a reason for that. He obviously did not pay a loan back at an earlier date, or he has failed to keep up on some kind of paperwork. If he is unable to attain credit on his own it is likely because he did not respect some lending institution in the past, therefore can you hope that he will respect you as a lending institution?
If you care for your family and you are committed to refrain from all new debt you will not take on the responsibility of someone else’s debt either.
Well I can spare the money, and after all he is my relative. So he can pay me back whenever he can.
Yes, he is your relative. Therefore you should want the best for him. If you can spare the money, then give it to him. But give it as a gift not as a loan. If you give it to him as a gift then nothing is expected in return and there are no unholy ties associated with it. If you want to buy him a needed appliance, buy it and bless him with it. If you loan it however, on the premise that he ‘will pay you back someday’, you are opening up a door to the enemy in your brother’s life. There are laws that are set up about money. Just try to go get a loan at a bank on the premise that you ‘will pay them back someday’. Will they allow that? No. Because there needs to be a repayment schedule in place. When you make an agreement to pay back whenever you can, you break one of those laws that is associated to money. This causes a spirit of debt to now have access to your brother’s life. This will cause poverty and lack for him, so it is not in his best interest that you make any such agreement.
One should also make sure that you are not enabling this person. The Bible says, “if a man does not work, he should not eat.” If we are continually coming to the aid of the same individual we are rescuing him from the consequences of his actions. If we keep intervening, the Lord may just stand back and let calamity come on our own finances. This would be the only way to
a.) get our attention that we are doing wrong and
b.) bring the desired chastening to the brother who is out of line.
Revelation 3:19 tells us that “God rebukes those whom He loves.” It is better to avoid that rebuke through simple obedience. Let each man be accountable to God for his own actions. If he needs a co-signer he probably needs to step up to the plate on some old business and walk some things out. Let Jesus be this man’s rescuer. When he is diligent to work things through and faithful in the little that he has blessing will start to overtake him. That is what the Word of God says and that is our experience as well!
Tuesday, March 4, 2008
What is wrong with having debt?
Is having debt in my life sin?
Having debt in your life is not sin, it is just unwise. Deuteronomy 28:12 declares that those who are blessed will loan to nations, but they will not be in debt. If debt was a sin then God would not have encouraged the Israelites to loan to other nations, as that would have caused those nations to sin. However, in Proverbs 22:7 we are told that “the borrower is a slave to the lender,” and this is true. When we owe debt we are bound in a serving relationship. Now we must go out and perform. The more debt we owe, the more of our life we have to give away. We become a slave to the process of paying the money back.
It is unwise to be in debt for other reasons as well. When we borrow money, we have to pay back interest as well as the money that we borrowed. We can end up paying the full price and even up to 3 times that amount again, depending on the size of the loan, who we borrowed it from, and the length of time that we take to pay it back. If we see ourselves as God’s steward then we must realize that it is His money that we are wasting on interest.
Well how could we ever hope to own a car or buy a house without going in to debt?
When we belong to Christ we can count on Him to provide anointed ideas on how to overcome the things of the world. If one must use borrowed money there are wiser ways than taking a huge loan over a 25 year period. For example if one were to buy a smaller home that needed cosmetic repairs and get a 15 year mortgage instead of a 25 year mortgage, that would save thousands of dollars from the total that we would pay on a 25 year mortgage. Making payments twice a month will also cut down the interest considerably.
World Financial Group has several ideas that can help a family overcome mortgage debt. I highly recommend sitting down with a representative for a free consultation. It takes some of your time but we have a few people in our organization that paid out their mortgages early and ended up with several thousands of dollars in the bank as well. It is sure worth looking into.
Beware of car adds on television that promise low financing. Often you will pay twice what that car is worth by paying for it on monthly payments and it depreciates the moment you drive it off the lot. Consider instead making payments to your own bank account while you drive your existing car. When it is ready to die use your saved money to purchase a car for yourself. Buy privately and get a used car that someone else has already paid the depreciation cost on. Drive the new car and continue making payments to your account. Each year sell your car for about the same price you paid for it and take the money you saved and trade up. In a few years you will be driving a beautiful new car without the debt in your life.
Paul said to owe no man anything accept your love, so when we are debt-free we are more free to serve God. We can pick up and go as He leads and we are not encumbered by the things of the world. It is wise to avoid debt.
We teach these concepts and many more at our weekly House Church Meetings. We want to empower people to be overcomers. Check out the side bar of this blog for meeting locations near you, and also have a look at our other links. Money is just one of issues of life that we can help you with. This is an organization that makes a real difference in people's lives.
Having debt in your life is not sin, it is just unwise. Deuteronomy 28:12 declares that those who are blessed will loan to nations, but they will not be in debt. If debt was a sin then God would not have encouraged the Israelites to loan to other nations, as that would have caused those nations to sin. However, in Proverbs 22:7 we are told that “the borrower is a slave to the lender,” and this is true. When we owe debt we are bound in a serving relationship. Now we must go out and perform. The more debt we owe, the more of our life we have to give away. We become a slave to the process of paying the money back.
It is unwise to be in debt for other reasons as well. When we borrow money, we have to pay back interest as well as the money that we borrowed. We can end up paying the full price and even up to 3 times that amount again, depending on the size of the loan, who we borrowed it from, and the length of time that we take to pay it back. If we see ourselves as God’s steward then we must realize that it is His money that we are wasting on interest.
Well how could we ever hope to own a car or buy a house without going in to debt?
When we belong to Christ we can count on Him to provide anointed ideas on how to overcome the things of the world. If one must use borrowed money there are wiser ways than taking a huge loan over a 25 year period. For example if one were to buy a smaller home that needed cosmetic repairs and get a 15 year mortgage instead of a 25 year mortgage, that would save thousands of dollars from the total that we would pay on a 25 year mortgage. Making payments twice a month will also cut down the interest considerably.
World Financial Group has several ideas that can help a family overcome mortgage debt. I highly recommend sitting down with a representative for a free consultation. It takes some of your time but we have a few people in our organization that paid out their mortgages early and ended up with several thousands of dollars in the bank as well. It is sure worth looking into.
Beware of car adds on television that promise low financing. Often you will pay twice what that car is worth by paying for it on monthly payments and it depreciates the moment you drive it off the lot. Consider instead making payments to your own bank account while you drive your existing car. When it is ready to die use your saved money to purchase a car for yourself. Buy privately and get a used car that someone else has already paid the depreciation cost on. Drive the new car and continue making payments to your account. Each year sell your car for about the same price you paid for it and take the money you saved and trade up. In a few years you will be driving a beautiful new car without the debt in your life.
Paul said to owe no man anything accept your love, so when we are debt-free we are more free to serve God. We can pick up and go as He leads and we are not encumbered by the things of the world. It is wise to avoid debt.
We teach these concepts and many more at our weekly House Church Meetings. We want to empower people to be overcomers. Check out the side bar of this blog for meeting locations near you, and also have a look at our other links. Money is just one of issues of life that we can help you with. This is an organization that makes a real difference in people's lives.
How Can I Avoid New Debt?
It seems impossible to live debt-free in our society. How can I do it?
The only way to accomplish living debt-free in our society is to have a plan. If you fail to plan, you plan to fail. When you attend a House Church weekly you will go through our 52 short lessons on Finance and those lessons will help you to develope a plan to live by that will set you free from new debt.
Why is it so important to be debt-free?
Romans 13:8 says, “Owe no man anything accept your love.” When Christians owe money it is a poor witness. If we do not pay our bills on time we look poor, and nobody wants to join us if we are poor. God wants us to prosper so that we can be a blessing and glorify His Name through our actions. He does not want us to be using huge sums of money that was intended for kingdom use on paying exorbitant interest on items that we bought to feed our own flesh.
Well I don’t even know where to start.
The best place to start is right here, right now. You can’t go back and change the choices you made last week and last year. You didn’t know then what you know today. So start right now. Make a new commitment to surrender your ways to God's ways. Make a new promise to avoid new debt like you would avoid rattlesnakes.
Make a commitment today to no longer:
- Buy furniture or appliances on payments.
- Make purchases on credit cards that you can not pay off by the end of the month.
- Carry multiple credit cards with you while shopping.
- Go shopping without a list. (If you go shopping without a list satan will create one for you while you are visiting mammonmart.)
- Overflow the shopping cart when you have a nagging knot in your stomach. (That is a warning, so listen to it.)
Never:
- Take items to the pawn shop.
- Gamble with the money God has given you.
- Accept a loan with the understanding that you will pay it back someday, or whenever you can. (This opens a doorway in your life for a spirit of debt and it will overwhelm you.)
- Go to a loan shark, or take a pay-day loan.
Always:
- Trust in the Lord and lean not on your own understanding.
The only way to accomplish living debt-free in our society is to have a plan. If you fail to plan, you plan to fail. When you attend a House Church weekly you will go through our 52 short lessons on Finance and those lessons will help you to develope a plan to live by that will set you free from new debt.
Why is it so important to be debt-free?
Romans 13:8 says, “Owe no man anything accept your love.” When Christians owe money it is a poor witness. If we do not pay our bills on time we look poor, and nobody wants to join us if we are poor. God wants us to prosper so that we can be a blessing and glorify His Name through our actions. He does not want us to be using huge sums of money that was intended for kingdom use on paying exorbitant interest on items that we bought to feed our own flesh.
Well I don’t even know where to start.
The best place to start is right here, right now. You can’t go back and change the choices you made last week and last year. You didn’t know then what you know today. So start right now. Make a new commitment to surrender your ways to God's ways. Make a new promise to avoid new debt like you would avoid rattlesnakes.
Make a commitment today to no longer:
- Buy furniture or appliances on payments.
- Make purchases on credit cards that you can not pay off by the end of the month.
- Carry multiple credit cards with you while shopping.
- Go shopping without a list. (If you go shopping without a list satan will create one for you while you are visiting mammonmart.)
- Overflow the shopping cart when you have a nagging knot in your stomach. (That is a warning, so listen to it.)
Never:
- Take items to the pawn shop.
- Gamble with the money God has given you.
- Accept a loan with the understanding that you will pay it back someday, or whenever you can. (This opens a doorway in your life for a spirit of debt and it will overwhelm you.)
- Go to a loan shark, or take a pay-day loan.
Always:
- Trust in the Lord and lean not on your own understanding.
How Do I Deal With Old Debt?
“But as for me, I will walk in my integrity; redeem me and be merciful to me.” Psalm 26:8
Long outstanding unpaid debt is one of those areas where the enemy has a field day in the lives of believers. As we continue to not step up to the plate on old debt we are showing a lack of integrity in our lives. Now we may say, “Well that happened a long time ago and I shouldn’t have to pay that back now,” or “wasn’t all that happened before my salvation forgiven?” God forgives us of our sins. That is true. We have been forgiven that we borrowed money and did not pay it back by God, however if we did not ask the person we borrowed it from to forgive us then there is a doorway of unforgiveness still in operation. In their mind we still owe them money. Every time we buy something for ourselves, they would wonder when we are going to pay them back the money we owe them? This gives the devil legal right to hinder us in our finances. A spirit of debt or poverty may be influencing us and keeping us poor.
What should we do? Repent. Repent quickly and do not put it off. Write down every person and company that you owe money to, and how much. Then take your list before God and repent. Tell him that you are sorry that you have not paid these debts because that has glorified Him. Ask for His help to pay them now as you step up to the plate. Next write out a letter asking for forgiveness from each creditor. Offer to begin making monthly payments on each one. Even if you can only offer $5/month, get started right away. Send your first 6 months checks with your letter. If they cash that first check, they have entered into an agreement with you. Each month then you do not owe them anything more that what you agreed on. So the spirit of debt will loose his power over your life and money will come to you more easily. Some will forgive you of your debts, others will accept your payments and you will learn the valuable lesson of integrity while making that monthly payment until it is completely paid.
If you need a little help we have some excellent resource materials for you. Pastor Kerry has created a binder called "Financial Freedom in Christ" that can be ordered through the ministry. In it there are helpful charts to fill out to get your creditors in order. There is a sample letter to write to your creditors that you may photocopy or you can rewrite in your own words. There is a debt repayment schedule so that you can keep track of the checks that you have out in any given month, and some very easy budgeting help as well.
You may feel overwhelmed as you begin, but if you take a deep breath, and say a prayer for strength that can really help. You can also get a friend to come over and help you go through it. sometimes a little moral support and the accountability of another person there with you will help you get done what you need to get done. Put on the coffee and start opening up all those nasty bills together. You will feel a whole lot better and the burden will lift when you are done.
Make a plan for your success. Stick to the plan. You will do just fine. A year from now you will be surprised how far you have come.
“Owe no man anything accept your love.” Romans 13:8
Long outstanding unpaid debt is one of those areas where the enemy has a field day in the lives of believers. As we continue to not step up to the plate on old debt we are showing a lack of integrity in our lives. Now we may say, “Well that happened a long time ago and I shouldn’t have to pay that back now,” or “wasn’t all that happened before my salvation forgiven?” God forgives us of our sins. That is true. We have been forgiven that we borrowed money and did not pay it back by God, however if we did not ask the person we borrowed it from to forgive us then there is a doorway of unforgiveness still in operation. In their mind we still owe them money. Every time we buy something for ourselves, they would wonder when we are going to pay them back the money we owe them? This gives the devil legal right to hinder us in our finances. A spirit of debt or poverty may be influencing us and keeping us poor.
What should we do? Repent. Repent quickly and do not put it off. Write down every person and company that you owe money to, and how much. Then take your list before God and repent. Tell him that you are sorry that you have not paid these debts because that has glorified Him. Ask for His help to pay them now as you step up to the plate. Next write out a letter asking for forgiveness from each creditor. Offer to begin making monthly payments on each one. Even if you can only offer $5/month, get started right away. Send your first 6 months checks with your letter. If they cash that first check, they have entered into an agreement with you. Each month then you do not owe them anything more that what you agreed on. So the spirit of debt will loose his power over your life and money will come to you more easily. Some will forgive you of your debts, others will accept your payments and you will learn the valuable lesson of integrity while making that monthly payment until it is completely paid.
If you need a little help we have some excellent resource materials for you. Pastor Kerry has created a binder called "Financial Freedom in Christ" that can be ordered through the ministry. In it there are helpful charts to fill out to get your creditors in order. There is a sample letter to write to your creditors that you may photocopy or you can rewrite in your own words. There is a debt repayment schedule so that you can keep track of the checks that you have out in any given month, and some very easy budgeting help as well.
You may feel overwhelmed as you begin, but if you take a deep breath, and say a prayer for strength that can really help. You can also get a friend to come over and help you go through it. sometimes a little moral support and the accountability of another person there with you will help you get done what you need to get done. Put on the coffee and start opening up all those nasty bills together. You will feel a whole lot better and the burden will lift when you are done.
Make a plan for your success. Stick to the plan. You will do just fine. A year from now you will be surprised how far you have come.
“Owe no man anything accept your love.” Romans 13:8
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