Debt Angel - Credit Card Debt

Credit Card Debt - Watch Out For Its Kiss...

Credit Card Debt: Is it Biblical?

Romans 13:8 tells us:

"Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellow man has fulfilled the law. " Any debt is biblical, to the extent that you are actively working to pay it off! But there is something particularly seductive about credit card debt. How does a person get himself into the awful, but common, predicament of not just any debt, but specifically, credit card debt?

An Example of the Dangers of Credit Card Debt

Here's an interesting example showing the loathsome dynamics of credit card debt: Let's say you want new computer equipment, with all the bells and whistles, that will cost just around $2000. You receive a credit card offer in the mail, which explains that you can borrow up to $2000, and then begin payments of only $40 a month. The interest rate is a bit steep at 18%, but after all, the payment is only an affordable $40 a month. For credit card debt, It sounds like a super deal.

Avoid Paying Only the Minimum Amount Due

If you pay the MINIMUM balance on that credit card every month (calculated as 2% of your outstanding balance), it would take you over 30 years to pay off your credit card debt, which will certainly be obsolete long before you finish paying. The worst part is that you will end up paying about $5,000 worth of interest on a $2000 loan! Think about that the next time you say "charge it." Did you know that average households now carry some $8000 in credit card debt? That's 167% more than the $3000 average for households in 1990. No wonder people are trolling the Internet looking for debt relief.

Forget it! God doesn't want you to spend eternity paying off credit card debts (unless you've done something really, truly sinful). Get your hands on some credit card consolidation - the angels will smile down upon you.

The Cost of Missed Opportunity

Think of the missed opportunity costs. Remember our computer equipment we couldn't live without? What if we had taken that $40 a month and put it into an investment PAYING 8% over the same 30 years? Your investment would be worth over $60,000, and $46,000 of that would be interest WE were paid!

If you are in a situation where you owe a thousands of dollars on several cards, debt consolidation may be the right choice for you. Debt management is something you'll certainly need to look at, both the pros and the cons. It can help you pay off your total debt within five years, at a discount rate; and with a little fine-tuning and debt counseling - you'll have more access to your cash flow during the process.

Credit Card Debt

Being knee deep in your credit card debts is no fun, believe you me. The best way to eliminate credit card debt is to first believe in yourself that you can actually make your balances disappear with strong discipline and a responsibility that you take upon yourself. It can happen. Just remember- interest is the enemy. (And credit card debt consolidation is the hero.)

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