Wednesday, July 6, 2016

Getting Out of Debt and Staying Out!

Debt is a big problem for many people and families.   In our Self-Reliance Services Newsletter for June 2016 there is an article I include below called "6 WAYS TO GET OUT OF DEBT"

Serving as Self-Reliance Missionaries in the Philippines we come in contact with people all the time who are burdened by debt.  In the Philippines many people borrow money from "friends" or "family" on what is termed a 5 - 6 loan.  For those who may not know, a 5 - 6 loan is very simple.  You borrow 5 today and in 30 days you pay me 6.  For example, 5,000 pesos today requires payment of 6,000 pesos in 1 month.  If you don't have the 6,000 pesos in a month, don't worry, you can pay 1,000 pesos and then in 30 days you can pay the 6,000.  Or again, just pay the 1,000 pesos of interest per month, every month.  Month after month and year after year.  The math is simple, 20% per month or 240% per year.  When someone takes out a 5 - 6 loan they find themselves working for the lender, not for themselves or their family.  They are in bondage and some then borrow from another to pay the first and then the second until they are so far in debt they can find no way out.

In the United States of America it is a little more subtle.  Start off with credit cards which have 18% or higher interest rate with hidden charges for late or short payments and the interest rates can rival what happens in the Philippines.  Families often borrow on their home to pay these off and then start over again with new credit cards and it continues to get worse.

Debt and interest like this is a tool of Satan and he uses it well to destroy lives, marriages and families.  If you have problems with debt, seek help.  Read these suggestions and make the sacrifices necessary to remove this burden from your life.

Remember that your family is most important in your life.  Do not allow debt to destroy your family.

I would like to suggest the following as the path to financial well being.

First, pay your tithing.  God Promises in Malachi 3:10

Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith
the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it.

This is a promise, this is a covenant, and God cannot lie.  Simply stated, pay your tithing and you will be blessed.  God will open the windows of heaven and pour out blessing upon you and your family.

Second, spend less than you earn.  Learn to live on less than you earn.  Do not live on borrowed money.  If you use a credit card, do not charge more than you can afford to pay off that month.  Save for extra wants so you have enough for your needs.

Third, learn to save.  You never know what will happen so save a little each week so when you have an emergency you can the money to take care of it.  Pay yourself a little and hold it in reserve.

Fourth, honor your financial obligations.   We are people of integrity.  We believe in honoring our debts and being honest in our dealings with our fellow men.

Fifth, teach your children to follow your example.   Children learn best by example.  If they see their parents paying their tithing, spending less than they earn, saving a little each week and honoring their commitments then their children will also have integrity.  

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