These are depressing times. The economy is slowing down. Unemployment rates are going up. Gas prices are through the roof. The stock market is volatile. Foreclosures are at an all time high. Home values are plummeting. Banks are failing. And today, two of the biggest backers of home mortgages, Freddie Mac and Fannie Mae, were just seized by the government. Can things get any worse?
Perhaps, things wouldn't be so perilous financially for people today had we listened to the simple advice of Solomon in Proverbs 22. A lot of people today are in a quandary financially because of the failure to heed Solomon's practical instruction. Banks have failed and gone into receivership due to their less than prudent actions regarding lending practices.
In verses 26 and 27 of this chapter, Solomon states that we shouldn't pledge a debt that we don't have means to pay or else we'll lose our bed, or in more modern terms, our house. In other words, if we can't afford something, don't buy it. Don't borrow money you have no way of paying back.
In the past few years, the sub prime mortgage offers enticed a lot of people into purchasing homes they couldn't really afford. Most people reasoned that they could get into a nicer home at a lower payment and then refinance later. That lower payment looked awfully good. But most didn't consider the exploding balloon payment that got there sooner than they expected. When the housing values begin to fall, many found themselves owing more on their house than what their house was worth. And just like Solomon said, "if you lack the means, your very bed will be snatched from under you."
As the amount of foreclosures have risen, the value of homes have been driven even lower. That has put more people into upside down situations and into financial peril. Banks and lending companies, eager to make a profit through seductive offers, are now suffering the consequences of their own greed. Many of them are now over extended and experiencing huge losses.
But this type of mentality isn't limited to mortgage lenders. Credit card debt has long since taken the lead in heaping debt on the average consumer. Many of us buy things or charge things that we have no ability to repay. Now add growing interest and the debt becomes unmanageable. And with new bankruptcy laws taking affect, getting clear of our debt is even harder.
If only we could get a grasp on the wisdom of Solomon in this simple financial matter. Don't borrow beyond your means to pay back. I don't care how good your are at manipulating your cash flow, it will catch up to you and you will always be scrambling. Financial struggles bring on tension. Tension often leads to disagreements. Disagreements sometimes kill relationships. (Did I mention that financial issues are listed as the number one cause of divorce?)
God, please help me live within my means. Credit offers, easy payment plans, makes things seem so enticing. I confess, I have an "I want" syndrome. Give me the wisdom and the discipline to use sound financial and budgeting principles. I don't want to put my family in distress and I don't want to take away from giving to your Kingdom.
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