Money Crisis

 

PORTRAITS

 

? Carl and Laura’s credit card debts have run out of control. Carl can’t get Laura

to stop spending, so they are constantly overwhelmed with bills they cannot

pay. Carl wants you to talk some sense into Laura.

? Bill just lost his job—downsized by the corporation. He is trying to fi nd work,

but the job market is tough. He’s struggling with God’s care for him in the

midst of this crisis.

? Sher’s husband of twenty years ran off with another woman. Aft er all the negotiating

between the lawyers, Sher is left with virtually nothing. She hasn’t

worked for years—how will she make ends meet?

 

DEFINITIONS AND KEY THOUGHTS

 

? A crisis is more than just a tragedy or upheaval; it is also defined as “a turning point, a condition of instability that leads to decisive change.” Let this encourage you. Decisive change can be good.

? A person who wants to fix a money crisis will need advice about handling the difficult financial situation, but he also needs something deeper—an understanding that, no matter what caused the difficulty (even if you did it to yourself), God still cares.

? Make some lifestyle changes that can help with the crisis. If the crisis is the result of personal irresponsibility, you should see your problem as God’s wake-up call. Take the long view and make changes that will keep this crisis from happening again.

 

 

The average creditcard

holder is carrying

a $2000 balance

at 18 percent interest

and is making minimum

payments. At

that rate of payment,

it will take more

than twelve years to

pay off the balance,

even if the card goes

unused during that

entire time. And total

interest that will be

paid on that $2000

balance is $2,231.

 

WISE COUNSEL

 

Some issues you may be facing:

 

Perspective—you may be so completely overwhelmed that you cannot function in life and are losing perspective on what really matters. Try and see that there is a way out if you take a breath and begin to think creatively.

 

Prayer—You may feel you cannot pray because the situation is you own fault. Understand that, no matter what the cause of the crisis, God wants you to pray about it.

 

Blame—Maybe you are blaming the entire problem on someone else and are focusing too much on that person. You need to see that spending all of his time thinking about what you’d like to say to that person gives the perpetrator too much power over your life.

 

Quick Fix—The person is focused on some speedy way to get out of the problem

(like winning the lottery or filing for bankruptcy). Help him see that this is going

to be hard work. It will take some belt-tightening and some lifestyle changes in

order to solve the problem and make sure it doesn’t happen again.

 

 

Therefore humble

yourselves under the

mighty hand of God,

that He may exalt you

in due time, casting

all your care upon

Him, for He cares

for you.

—1 PETER 5:6-7

 

 

 

ACTION STEPS

 

1. Get your perspective back.

? Say it aloud, “Money will not solve all my problems.” Sure, you need some now,

but the more important issue is what God wants to do in your life.

? Credit card companies are not staying awake at night worrying about you.

? Go do something free and enjoyable. You have today—enjoy it. Keep on living.

Walk the dog, hug your kids, listen to a CD, borrow a movie from the library

or a friend.

 

2. Know that you can bring this crisis to God.

? Is it okay to pray about money? Yes, of course. In the middle of a financial crisis,

as in any crisis or suffering, God wants you to run to Him.

? You need help; ask for it. You need guidance; pray for wisdom.

? If you caused the financial problem you’re in, ask God to forgive you and to

help you learn His lessons well so it won’t happen again.

? God is concerned about all of life. His goal is to make you more like Him. Your

crisis may be part of that growth.

 

3. Deal with the immediate problems.

Face the extent of the problem and decide what sacrifices or changes may be necessary

in the short term in order to handle the crisis, such as:

– Is there sin? Look it in the face and deal with it.

– Do you need professional help? (such as for a gambling addiction)

– Make phone calls, set up payment plans (after working up budget in #4).

– Put the credit cards on ice (literally), so you can’t get to them. Cut up as

many as possible.

– What other fires need to be put out?

 

4. Develop a plan for handling bills and payments.

? Prepare a budget. Start with your income; figure fixed payments (rent/mortgage,

tithe, utilities, car payments, insurances), then regular expenses per

month (food, gas, misc), then other monthly payments (creditors—start with

minimum payment amounts).

? List all the “other” expenses from lowest total to highest total.

? After working your budget, how much money can you put toward the “other”

bills? If only the minimum (such as with credit cards), start there. (If you can’t

even make minimums, you will consider other options in #5 below.) Place

amounts beside each bill.

? Decide how much you can pay toward each of the “other” bills. Pay that amount

toward each bill regularly. As soon as the lowest bill is paid off , add the amount

you were paying to that bill to the next bill on the list, and so on. Gradually you

will be adding larger amounts of money to the larger bills.

? Prepare a worksheet that lists all bills. Organize them according to due dates

and which will be paid with which paycheck during the month. Make this reproducible

so you can use it each month, checking off payments as you go.

 

5. Where can help come from?

Brainstorm ways to get additional money to help retire the debt. (Be sure to understand that any additional money must go toward debt, not to raise your standard of living.) Consider:

– Sell something of value.

– Take out a home equity loan or refinance an existing mortgage.

– Take on a new job (spouse goes to work outside the home; or money is

earned from inside by babysitting, tutoring, etc.).

– Get a loan from family or friends (careful with this one).

– Obtain advice from an accountant or financial advisor who can help keep

you on track.

– Get help from the church or the government.

 

6. Set new priorities and parameters—what needs to change?

? Do not run up any new debt. Leave credit cards on ice, for true emergencies only.

? Discuss needs vs. wants. Where can your belt be tightened?

? Decide on a thirty-day moratorium on any purchases over a certain amount of money. You may find you don’t want it so badly after thirty days. (If couples, do this, but also they must agree on the purchase—no surprise purchases.)

 

7. Be patient. Let God perform His work in your life through this crisis.

? Your crisis is not a permanent condition. It’s a turning point. It will get better.

? Don’t be ashamed. Hold your head high, trust God for guidance, follow that

guidance, and remember that somehow God is going to work all these things

together for your good.

? Ask: Where is God guiding? What is God teaching?

? Don’t let the crisis turn you from God. Draw nearer. Study His Word. Pray for

wisdom, protection, provision.

 

The Motley

Fool’s Credit

Center features

several mind-blowing

statistics:

? Total consumer

credit: $1.7 trillion.

? Credit card

debt carried by the

average American:

$8,562.

? Total finance

charges Americans

paid in 2001: $50

billion.

? Percent of U.S.

households deemed

credit worthy by the

lending industry: 78%.

? Number of credit

card holders who

declared bankruptcy

last year: 1.3 million.

 

 

By committing not

to go further in debt,

people begin to

reverse the process

that produced the

debt. Then, they can

develop a balanced

budget that will control

spending and will

allow them to stay

within the parameters

of their financial

means.

—CROWN FINANCIAL

MINISTRIES

 

 

 

BIBLICAL INSIGHTS

 

The sleep of a laboring man is sweet, whether he eats little or much; but the abundance

of the rich will not permit him to sleep. —Ecclesiastes 5:12

? Many people desire to be rich, thinking that they will have no more worries.

That is a paradox, however. Riches give freedom to do many things, but the

chains of worry often ruin any true enjoyment.

? God would have us be content whatever our financial status, for all wealth

ultimately belongs to Him.

 

“You have sown much, and bring in little . . . And he who earns wages, earns wages

to put into a bag with holes.” Thus says the Lord of hosts: “Consider your ways!”

—Haggai 1:6, 7

? People spend money on what they consider most important. Haggai pointed

out that the people in Jerusalem were valuing the comforts of their own homes

over God.

? We need to reevaluate where we spend our resources. Do our activities and

spending habits reflect our dedication to God?

 

“Bring all the tithes into the storehouse, that there may be food in My house, and

try Me now in this,” says the Lord of hosts, “If I will not open for you the windows

of heaven and pour out for you such blessing that there will not be room enough to

receive it.” —Malachi 3:10

? God’s ways are not our ways. People think that to be secure, they must hoard

their money. God says the opposite.

? Jesus issued the same challenge: “Give, and it will be given to you: good measure,

pressed down, shaken together, and running over” (Luke 6:38). To refuse

to give is actually to rob God; to give generously is to know God’s abundant

blessings.

 

Be anxious for nothing, but in everything by prayer and supplication, with thanksgiving,

let your requests be made known to God; and the peace of God, which surpasses

all understanding, will guard your hearts and minds through Christ Jesus.

—Philippians 4:6, 7

? This verse applies to many kinds of worries—and it certainly fits financial pain.

If you’re in a financial crisis, the first place you need to go is to God, letting

“your requests be made known to” him.

 

For the love of money is a root of all kinds of evil, for which some have strayed

from the faith in their greediness, and pierced themselves through with many sorrows.

—1 Timothy 6:10

? The Bible doesn’t say that money is the root of all evil. Money can do good

things for God’s kingdom. The root of all evil is the love of money.

? Those who love money never have enough, and they do any number of stupid,

illegal, or risky things in order to obtain more. They are never satisfied.

? How do believers stay away from the love of money? “Godliness with contentment”

is the answer. When we are content with what we have, we can give the

extra back to Him.

 

 

The borrower is servant

to the lender.

—PROVERBS 22:7

 

PRAYER STARTER

 

I know, Lord, that nothing is too hard for You. I humbly ask that You will help me be wise as I prepare a budget, seek new income, and try to pay off these debts because I know this honors You. Show me what You would have me do, and I ask for provision and protection . . .