Too often people in both niches of finances and religion identify a situation as black and white when it is actually gray. I hate to burst anyone’s bubble, but the world is much more complex than to have a clear cut answer for every question out there. This is the reason why it is important to be intentional with your finances. Making well-thought-out decisions about what and why you do them is an important step for every individual and family. While it is a wise decision to get advice from those you trust, you have to make the decision.

One of the most challenging questions is whether you should avoid debt like the plague. Most people, including myself, will tell you that it is better to live a debt free life because of the flexibility and freedom that it gives you. Yet, there is also many benefits of using debt to your advantage. Many card companies offer credit card rewards for using their card on everyday purchases. You can leverage your money in real estate by taking out a mortgage instead of buying a home in cash. Thus, I think it is an important question to ask whether one should avoid debt at any cost or if you can use it to your advantage.

Biblical Defense?

One of the most common things that I see among other religious finance blogs is the use of the bible to support one argument or the other. But, if you examine the entirety of the book, you will see that it isn’t black and white.

Pro-Debt Use:

Luke 19:11-27

¹¹ As they heard these things, he proceeded to tell a parable, because he was near to Jerusalem, and becausethey supposed that the kingdom of God was to appear immediately. ¹² He said therefore, “A nobleman went into a far country to receive for himself a kingdom and then return. ¹³ Calling ten of his servants,^[a] he gave them ten minas,^[b] and said to them, ‘Engage in business until I come.’ ¹⁴ But his citizens hated him and sent a delegation after him, saying, ‘We do not want this man to reign over us.’ ¹⁵ When he returned, having received the kingdom, he ordered these servants to whom he had given the money to be called to him, that he might know what they had gained by doing business. ¹⁶ The first came before him, saying, ‘Lord, your mina has made ten minas more.’ ¹⁷ And he said to him, ‘Well done, good servant!^[c] Because you have been faithful in a very little, you shall have authority over ten cities.’ ¹⁸ And the second came, saying, ‘Lord, your mina has made five minas.’ ¹⁹ And he said to him, ‘And you are to be over five cities.’ ²⁰ Then another came, saying, ‘Lord, here is your mina, which I kept laid away in a handkerchief; ²¹ for I was afraid of you, because you are a severe man. You take what you did not deposit, and reap what you did not sow.’ ²² He said to him, ‘I will condemn you with your own words, you wicked servant! You knew that I was a severe man, taking what I did not deposit and reaping what I did not sow? ²³ Why then did you not put my money in the bank, and at my coming I might have collected it with interest?’ ²⁴ And he said to those who stood by, ‘Take the mina from him, and give it to the one who has the ten minas.’ ²⁵ And they said to him, ‘Lord, he has ten minas!’ ²⁶ ‘I tell you that to everyone who has, more will be given, but from the one who has not, even what he has will be taken away. ²⁷ But as for these enemies of mine, who did not want me to reign over them, bring them here and slaughter them before me.’”

While not explicitly about debt this passage in luke helps illustrate the importance of using what we have been given to grow wealth. Most of the time this is use to argue about using our personality strengths for the purpose of God’s work. While this analogy may still apply, this passage has many financial illustrations:

• The money that the nobleman gave to his servants
• Talk of interest, bank, minas as a form of investment (note that a mina is about 3 months work for a laborer – imagine getting three months of your salary, how would you invest it?)

On the other hand, there are a number of other biblical verses that are strongly against debt:

Proverbs 22:7 –

The rich rules over the poor, and the borrower is the slave of the lender.

Romans 13:8 –

⁸  Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.

While it is important to consider the context of both of these passages (which I don’t have time to explore) the message is quite clear. Owing money to other people or companies can limit your pursuit of happiness and justice. Living in debt can be a debilitating thing.

My Take on Using Debt

While I would love to hear from my readers considering this interesting debate, I will give you my stance on debt (which isn’t normal). For the most part, I live a hard and fast rule of living a debt free life. Again, I said for the most part. I do think that owing money (like getting a mortgage) whether that be for your own home or real estate investments is a great way to go, but within reason. Too many of my friends and family jumped into buying a home before they could afford it and are now under water.

When you are considering using debt to leverage your money and build wealth, be sure to ask yourself it is worth the risk AND whether you can handle the risk. Will you be able to pay the debt should anything terrible happen? Or are you praying to God for a miracle each month to pay the mortgage. People often make a distinction between good debt and bad debt, but I’d like to propose smart debt and stupid debt. Stupid debt is the one that is bordering on insane. This is the type of debt that people get just because they want to – whether that be drive a new car or getting a HUGE house. Smart debt is the idea of using debt responsible to build wealth and obtain financial security much faster. These examples include using credit cards, getting a mortgage that you can afford, etc.

Debt is not something to be used out desperation, but something that can be beneficial to the people who use it correctly. It’s too simplistic to say that you should avoid debt ALWAYS, but then again, it may not be a bad motto if it keeps you from making huge mistakes.

Readers, what’s your take on going into debt?

Experienced drivers know that if they want their vehicles to run properly for years to come, regular maintenance is essential. Household finances can benefit from the same advice. To improve a budget that isn’t running as smoothly as it could, or to prevent a financial breakdown, consumers should consider performing a financial “tune-up”.

Schedule a Budget Meeting

Improving one’s financial standing requires full participation and equal effort from both partners. Before any real change can occur, it’s a good idea to gather all bills, bank statements and other financial documents. Allotting adequate time to sit down with one’s spouse and go over household finances with a fine-toothed comb is essential.

The first step is looking for budget leaks and behavior patterns that cause late payments and other detrimental effects on household finances. Budgeting software is incredibly helpful, including the many new free online budgeting programs.

Next up is an honest, blame-free discussion of how these behaviors can be changed. Examples include scheduling set bill payment days, re-allocating bill payment responsibilities, or even something as simple as having plenty of stamps on hand.

Other Household Budget Considerations

Many couples are unaware of the numerous leaks in their budgets. Like a leaky engine, these budget holes can cause more serious problems in the future if not adequately addressed.

Some are as simple as downgrading to a smaller cable or phone package. Many households have TV channels and phone features they never use. Bundling services with one company can create even greater savings.

Auto insurance is another area of the budget that is often overlooked. Many drivers stay with an insurance agency out of familiarity or loyalty. Complacency could be costing many households a lot of money.

Online vehicle insurance comparison sites make no-obligation rate and coverage comparison simple and quick. Having a current insurance coverage statement handy while shopping for car insurance online ensures that switching to a new company won’t affect coverage.

For households that have already fallen behind on credit card and loan payments, it’s a good idea to contact creditors. Credit card companies in particular may be happy to lower the payment amount or interest rate on a delinquent account. It’s in their best interest to receive less money than agreed upon rather than no money at all. In today’s economic climate, credit issuers are accustomed to these types of calls.

Accelerating Debt Payment

Having a grasp on the current state of one’s household finances makes moving forward easier. Plugging budget leaks leaves more money available for paying off installment loans, credit cards and lines of credit.

Budget calculators make it easy to find out how long it will take to pay off a given bill. Many personal finance and industry-specific sites boast free calculators that allow users to input the current balance and interest rate to find out how much extra, and how many payments, it would take to pay off the debt.

Since many consumers have multiple loans and credit cards, prioritizing early debt payment is the final step. Many financial advisers recommend paying off debt with the highest interest rate first.

However sound this advice, some find it difficult to see the light at the end of the tunnel if the debt with the highest interest rate is also the one with the largest balance. If paying off smaller balances with lower interest rates first is a better motivator, then taking this route would be advisable.

Budget Maintenance as Prevention

Performing a financial tune-up may seem daunting, but it’s the most effective way to get back on track. From creating sound bill payment habits to shopping for less expensive auto insurance, budget “maintenance” helps households avoid the need for costly repair down the line.

Looking for a home?  If so, then you know shopping around for both your mortgage and your new home can save you thousands of dollars.

The problem is that shopping around takes time—a lot of time.  You could spend many hours comparing different banks’ home loans and the different types of mortgages.  In your home search, you may look at 25 or more houses.

Most people don’t have time to shop around effectively for both a mortgage and a home, which is why many people don’t get the very best deal they can.  The good news is that you can choose to use a mortgage broker and reduce your shopping around to homes only; the mortgage broker can shop around for the best mortgage for you.

Why should you use a mortgage broker?

1. Mortgage brokers are free.  You don’t pay the mortgage broker, the banks do.  (Usually the mortgage broker gets paid a small percentage of the loan amount.)
2. Mortgage brokers aren’t loyal to any one bank.  Brokers have access to many banks and can easily perform a home loan comparison to find you the best deal.
3. Mortgage brokers want to find you the best deal.  If a broker can find you the best deal, you are much more likely to take out that particular loan, and the broker gets a small commission from the bank.  If you are dissatisfied and don’t take the loan, the mortgage broker gets nothing.
4. You are under no obligation to the mortgage broker.  True, the mortgage broker spends time trying to find you the best loan, but if for any reason you are dissatisfied, you are under no obligation to take out the loan with the broker.
5. Mortgage brokers save you time.  If you let the mortgage broker do the work, you save hours of time by not having to personally compare the many loans that are available from several different banks.  That gives you more time to find your perfect property.

Buying a home is an emotional process.  You can spend hours look for just the right home, you will likely negotiate to get a better price, and after all of that work, you still may not get the home and may have to start the process all over again.

Mortgage brokers work for you and can help you relieve some of the stress of looking for a new home by finding the best home loan for you and your circumstances.  Considering mortgage brokers are free to homeowners, why not let an experienced professional help you shop around and reduce some of your stress over a very time consuming, but ultimately worthwhile, endeavor finding your home.

Out of all of the financial themes from the bible, contentment keeps coming up. In case you haven’t checked out the list of bible verses about money, there is a wide list of bible verses that have to do with contentment. Contentment means the act of being satisfied with what you already have. In some ways, it is the exact opposite of greed.

If you look at the list of bible verses more closely, you will see that the theme of contentment comes up over and over.

• Psalm 37:16 – Better is a little that the righteous has, than the abundance of many wicked.
• Proverbs 15:16 – Better is little, with the fear of Yahweh, than great treasure with trouble.
• Proverbs 30:8-9 – Remove far from me falsehood and lies. Give me neither poverty nor riches. Feed me with the food that is needful for me; ⁹ lest I be full, deny you, and say, ‘Who is Yahweh?’ or lest I be poor, and steal, and so dishonor the name of my God.

These are just a few of the many verses on contentment. The message seems to be clear: Value what you have. Don’t live your life in search of possessions. Search for meaning in people and God. And so on…

This sounds great, but can it be that simple? If this is God’s message to us, why is it so important. Why does it keep coming up, over and over.

Conservation of Resources

One of the first things that comes to mind is the conservation of resources. It’s no secret that the act of being green and frugal often overlap. When you are content with what you have, you are not driven to consume. Consumerism is rampant in the U.S. We strive to get more stuff, drive faster, get the latest and fanciest pieces of technology, and the list goes on. Unfortunately this means that we are using more of our natural resources and contributing to global warming. I’m aware that there is some disagreement over the issue of global warming – primarily if we are the cause (because it does exist), but irregardless, there is still an important biblical theme of stewardship. God asked us to be good stewards of his creation, and this is particularly relevant to issue of environmentalism.

Is it possible that God was/is warning us against our own self-destruction?

Are We Consuming or Being Consumed?

I remember when my wife and I started to have a little extra cash for the first time in our adult lives. Being a product of our culture, we asked what we could do with it. Questions about what we should buy (if anything) or where to go, were the popular topic. For anyone who has given into this, even in small bits, I am sure that you recognize (at least on some level) that stuff won’t make you happy. It may improve your life in some ways (and can therefore be “okay” with the right motivation), but it should never be the end result.

I often wonder if consumerism is about us buying and/or consuming resources or about us being consumed by our greed and want for stuff – because that is how it feels sometimes. If we are honest with ourselves, I think we will find ourselves looking for happiness in the stuff we buy. Is it possible that the impulse to buy and/or consume is doing more harm than good? (in more than one way)

I believe it is in a combination of these two reasons that contentment becomes so important. It is with contentment that we are reminded of what is important in life: friends, family, life, God, etc. All the other things have very little meaning.

Why do you think contentment is so important?

In all walks of life, it pays to be safe. Doing your best to ensure that you don’t succumb to any illness, injury or any other form of harm is important, but if something bad were to happen to you, someone you love or a treasured possession, what do you do? Many people take out insurance policies to protect themselves financially against such a thing happening. However, for all that’s good about having insurance, there are a few flaws. Here are some of the pros and cons of insurance:

Pros:

• Insurance can cover you for all sorts of things. You can get covered in the event of a car crash, against burglary, illness, the contents of your home being damaged or even if your pets become sick.
• Some forms of insurance can be very cheap. For example, some insurers offer contents insurance worth up to £5,000 for less than £10 per month.
• Being insured helps to reassure you that, if something bad were to happen, you’re going to get some sort of coverage, whether it’s in cash form or a replacement for the car or electrical item which has become damaged.

Cons:

• Some insurance policies such as car insurance can run into thousands each year. This often makes motoring expensive for people who need to own a car for getting to work, doing the weekly shop and getting around.
• Insurance payouts can sometimes be insufficient, especially when for something like an injury. This is where specialist law firms such as first4lawyers come in, as they sometimes win a lot of compensation for clients who make claims.
• Sometimes it’s better not to have insurance, especially if it’s too expensive. Some policies don’t offer value for money, while insurers occasionally make it too complicated for customers to get the policy that’s right for them.

Ah, medical bills.  We all hate them but they have been part of our life since birth.  As the old, wise saying goes, “there is no such thing as free lunch.”  Oh how that is especially true with medical bills!  I was just at the doctor’s office for a typical check-up and it cost me $20!  no treatment, no nothing, but it still costs me money.  I guess I should be thankful I’m not paying thousands because of cancer treatment!

However, my point here is that medical bills are part of life and the sooner we accept that, the sooner we can properly manage them.

If you find yourself in a position where you have a gigantic medical bill looking back at you, what do you do?  I know you didn’t ask for a big medical bill but sometimes real life can be quite the shocker.

I want to share with you some tips for lessening the burden of a medical bill.  Some of these tips might surprise you because hospitals and pharmaceutical companies simply don’t want you knowing about them!

Never pay full price

Did you know that you don’t have to pay full price for your medical bills?  If you’re surprised, you’re not the only one!  Hospitals assume that you will just pay the price tag of whatever treatment you had.  It amazes me how people blindly walk into medical bills and write a blank check.  Stop forking over money for the full bill!

Hospitals understand the economy and are typically willing to negotiate bills.  Another thing you should consider is negotiating the price of a medical procedure before you get the bill.  It’s not uncommon for hospitals to slash their price by 25% or more to retain your business.  Remember, hospitals and medical companies are run like a business; they don’t want to lose you and your family’s business!

Don’t assume the bill is correct

Medical bills are like traffic tickets, there are typically errors that can lessen the amount of the bill.  Did you know that the average medical bill passes through five sets of hands?  It can actually be more than that for certain hospital organizations.  Because of this arduous process, you need to make it  a habit to double check medical bills.  Hospitals could care less if you overpay for something that is not correct.  You care because your wallet cares!

How to handle medical debt

Medical debt is never fun, but sometimes it happens.  A great example is someone who goes through cancer treatment and their insurance only covered 50% of it.  If the rest was taken out on credit, you will need to tread carefully.

Most medical organizations will not request the full amount owed.  Instead, you can negotiate payments and end up paying the price in full.  For a hospital to go to collections is quite the process and can be spendy for them.  They are typically extremely open to negotiating with you.

Going forward…

After reading this article, hopefully you are more self-aware and will be better prepared for medical bills in the future.  Taking action and learning about these things will benefit you down the line especially if you feel it doesn’t matter now.  Don’t assume these situations will never happen to you.  You never know what the Lord has planned for your life, and as Christians, we are called to a standard of wisdom and not simply following the Lord blindly through life.  Be prepared for the worst and the Lord will take care of the rest!