Why do People Go into Debt?

In his book Taming the Money Monster well-known Christian financial counselor Ron Blue introduces his readers to common reasons why people go into debt:

• Lack of Discipline
• Lack of Contentment
• Search for Security
• Search for Significance

Here’s what I think:

If I were to rate these I would put the lack of discipline as number one. In our convenience oriented world people often do not really interact with cash. The pay check is automatically deposited. Their bills automatically withdrawn. They pay for groceries, gas, and goods with a credit card. So they never really interact with cash. Why pay attention to it? Why spend time with it? As long as there is money in the account (and even when there is not) I can still charge that item, so why spend time trying to figure everything out?

Lack of contentment. Not really sure about this one. We are a people who seem to 'need' a lot. I do not know if we are not content, or greedy, or just have a high level of need. Probably we have a bit of all of these things.

Search for security. Be honest. We all feel a little better when there is a cash cushion in the account. The question is always when does saving become hoarding, and when does security become a false security with misappropriated hope? I suspect there are a lot of us who feel less secure after the 2008 experience than we did prior, and yet our God is the same yesterday, today, and tomorrow. Interesting to consider.

Search for significance. There is a lot to this. Power and significance go hand in hand. Seems as though the Bible does not have a lot of positive things to say about humanity's quest for power.

Perhaps I could add a fifth to the list - ignorance. Many people are in debt simply because they thought debt was the right or best way to succeed. They have not had much teaching at home. They did not get any teaching in school. One cannot know unless he has first been taught (unless he can teach himself, but that would require self-discipline which we have already recognized is in short supply in the financial realm).

By the way, to see more of Ron Blue’s material you can check out his website here.

How did we get to be in this mess?

"How did we get to be in this mess?", perplexed people often ponder. When did we choose this life? How did it get to a point that I couldn’t sleep at night? What happened that made me afraid to pick up a phone? When did things get this bad?

Drowning in a sea of debt is a conscientious decision few have made. The flaw of many was simply thinking only about today.

Margaret Atwood in her book Payback: The Shadow Side of Wealth rightfully remarks, “a story is a string of actions occurring over time.” Often we would not have selected our current status, but one, two, or a hundred poor decisions along the way have led to a mess.

Perhaps you are a young person who has yet to script much of your story. Or perhaps even you are an older person who so far has been fortunate enough to avoid large amounts of consumer debt. It might even be that you are already struggling with massive amounts of debt. Regardless, the rest of the story is waiting to be scripted. Interestingly, you can either write your own script or just a few ignorant decisions and before you know it 10 -15, 20 years of your life has already been scripted by the need to repay.

Look ahead. Where do you want to be tomorrow? What needs to happen to your finances today so you get to choose your own story?

Debt as Obligation

Every debt you sign leaves you, the individual ‘in debt’. Who wants to be 'in debt'? And what does it mean to be 'in debt'? Being 'in debt' tends to have a negative implication. But getting debt presents itself as the sophisticated means of getting wealth. A debt is never assumed without an obligation. A debt, therefore, always costs some level of freedom. The amount of debt attained dictates the amount of freedom sacrificed. A bad series of debt decisions often leaves the individual powerless to the masses of creditors. Their future is now controlled by a series of seemingly insignificant decisions about debt. This has resulted in an entire shifting of power - away from the individual and to the creditor. Power away from your free will to enslavement to the will of the creditor.

Those in debt will often say,

• "I cannot look for another job, I'm in debt."
  
• "I wish I could help with that ministry or mission, but I'm in debt."
  
• "I would love to do some other things with my life, but I'm in debt."

That debt we thought would be a ticket to something greater has now become the leash that limits our freedom.

Along these lines the teacher of Proverbs observes: "The rich rule over the poor, and the borrower is servant to the lender" (Proverbs 22:7 NIV).

Also Deuteronomy 15:6 records the following teaching "For the LORD your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you." Here we see Israel’s claim as a free nation includes the avoidance of debt. Debt is a type of servanthood or slavery. Israel knows intimately the burden of slavery. Israel's God does not want His people ruled over. When we are ruled over we are put on a leash and forced to do something that someone else wants. God wants us in a position where we only need to do what he wants. Thus the one who lends, rules and the one who borrows is ruled over.

Are you completely free to serve God when he calls? Can you go where he sends you? Can you be his body in helping those in need? This is where God wants us to be and it is my intention to continue to provide resources necessary to help us come to a place in life where our only obligation is to God and his kingdom.