MoneyWalk 158 Pay Off Debt
This program will help you undo financial bondage.
The highest interest loans are usually issued by retail establishments. Most of them charge about 25% interest for every dollar borrowed when not paid off in total once the bill is due next month. These financial institutions are charging you 25 cents on each dollar you let revolve (rollover) from month to month. It usually takes a very long time to pay these credit cards off when you only make minimum payments because the payment due is usually 2 to 4% of the outstanding monthly balance. Financial institutions that provide these loans may set the finance charge at a much higher level (30%, 35%, etc.) when they believe you have become a poor payment risk due to undisciplined financial behavior (increasing credit limits or usage, delinquencies, etc.).
It’s not good for your financial health to maintain and continue to seek more debt. Get your financial affairs in order to pay off credit balances and develop a mindset to refrain from using them, unless you have more than enough money saved to pay off your entire charge when the bill comes due. People that have been undisciplined in using credit in the past should immediately close the accounts, no matter what others say about it ruining their credit score. If they don’t cut them up, the debt demon will continue to guide them into overspending and their credit score will wind up being terrible anyway as their debts grow larger, seriously undermining their ability to pay bills on time each month and provide for their family. You must understand that many loans and credit accounts are issued to motivate you to buy more and more unneeded products and services without regard for what is truly best for you and your family.
Never listen to advisors who encourage you to keep credit accounts when past history shows you have been undisciplined and thus will remain loaded down with debt. You must break the cycle. When you eliminate credit accounts and faithfully pay bills when due, you put yourself in a far better financial position than what is indicated by just having a good credit score. You won’t need a credit score at all because provision that comes from utilizing biblical financial debt-elimination principles will bring all the resources that are best for you, especially when you follow this up with long-term investing of the freed-up cash flow.
While going through the debt elimination process, you may be able to apply for a low interest consolidation loan at your financial institution to pay off higher finance charge accounts and get one reasonable monthly payment for all the accounts consolidated. These loans are normally closed-ended, which means the amount you pay off in future months is not re-usable. It does not revolve to allow you to charge more. Never consolidate accounts with a finance charge lower than the consolidation loan's finance charge. The Lord wants you to be debt-free, able to provide for yourself and family, and able to abundantly fund gospel ministry. Doing all you can to get high finance charges lowered helps you more quickly eliminate debt and is the type of faith with works that is pleasing to Him. It shows you are a good steward of money entrusted to you.
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Deuteronomy 28:12, Proverbs 22:7, Luke 16:8-12, Romans 13:8
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The book at the link below provides principles and practical steps that help you use the Power To Get Wealth. By 1992, we had $135,000 of debt and a negative $35,000 net worth. Financial bondage and turmoil led me to seek principles and a process for employing good stewardship. As a result, we became constructively debt-free in 1998, mortgage free January 2004, millionaires in 2012, multi-millionaires shortly thereafter, and retired in 2018 in my mid-fifties from public servant jobs while giving abundantly to fund the gospel of our LORD Jesus Christ. The same power is available to you!
You can find books authored by Randy and Karen Parlor at www.Amazon.com.
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