So, last time, you took a little test about credit and debit card usage and learned - or re-learned - how ubiquitous, yet costly, it is. But oh what marketers they are. See if you can finish these jingles:
Master Card: There’s some things money can’t buy … (for everything else, there’s Mastercard)
VISA: It’s everywhere … (you want to be)
And finally,
American Express: Don’t leave home … (without it!)
Speaking of American Express, here’s a startling bit of trivia for you: Back in 1958, when the first American Express cards were issued, it was touted as the “new money” – boy, how right they were. But … here’s the critical question: Is … that … little … piece … of … plastic … really money? Or … could it be something so dangerous – so potentially ruinous to your financial health – that you should at least consider whether you should be using it at all? Maybe a radical question but it will be my job during this the next several postings to help you answer that question by clearly explaining both the risks AND the potential costs of using credit.
So … let me tell you, upfront, the three main points for this topic. In terms of a picture, they form a “hamburger,” because there’s a bun on top, a bun on the bottom and a whole lot of meat in the middle. So, loosen your belts and get ready to digest some pretty heavy stuff. Let me finish this posting by introducing the three points that you can ponder for a couple of days.
Main point #1 – the top bun – and let me put it in question form: Is it wrong to eat this hamburger? In other words, does the Bible say that borrowing or debt is a sin? Think about your answer and … the support for your answer.
Main point #2 – the meat of this topic: borrowing to buy just about anything is ex-pen-sive. That’s because, as you’ll see, there are actually TWO costs to debt, not just one. You’re likely familiar with the first cost, which is? Yes, interest, and as you learned with our little quiz, those rates can be enormous on credit cards. But the SECOND cost – and one that is rarely acknowledged – is actually far larger than the first – and the digestive problems of that lead to main point #3.
Finally – the bottom bun – Recommendations: this is going to sound pretty radical: as a result of main point #2, stop eating this nasty hamburger! In other words, stop taking on more debt; instead, get rid of all the debt in your life. Just as you feel better when you eat right, you are going to live better – far better - when you jettison all that resource-draining debt that sinks you deeper into the pit of never-ending payments.
So ponder all of that and come back in a few days.