There are SMS, anonymous and ad-hoc calls, emails and pamphlets about the availability of immediate credit with limited documents. There are easy loans everywhere. There are advertisements everywhere that seduce people to buy things they can not even afford to buy. The principle is simple – Buy Now and pay later. Many fail to notice the trap. Strangely the creditors who lend money to us are not our family members, relatives, and not even friends. But they seem to so concerned about our well being and willing to offer money.
Will anyone give us money without any return of favor? Most of the banks around the world carry quite a lot of non-performing assets. These banks have to make a profit from those who are not yet bankrupt from their previous debt. They aggressively pursue people who can take their loans and use their credit cards. None of the creditors runs a charity organization.
Let’s look at few debt traps
Educational and home loans are unavoidable in the modern era. Almost none of the middle class in any part of the world can afford to buy a home without taking home loans. It has become a norm of life. Same is the case for education loans in most of the countries. While loans in some case have become a necessary evil in our life, we have to make sure they don’t ruin our life. Better to wait for the closure of one loan before starting another loan. The spiraling effect of the combination of loans leads to deep debt.
Also try to pay back the premium when ever we have extra cash in hand. It reduces the interest on the over all loan amount. Do not drag the loans all the way to full term, when there is an opportunity to pay back premium.
Failures in life:
Failures in life are always painful. The failed marriages, business, and health not only creates emotional strain but adds to financial burdens. The failures in life hit us unexpectedly. Failure in marriage at times follows the health or business failure. When there is no money in the family the relationship in most cases hits a new low as a result of friction and frustration. No one can foresee the risk of unseen failures. But we can live a disciplined life. Spend time to build our relationship. Follow good eating habits to keep our good health.
Attractive but avoidable:
Luxury cars, ornaments, gadgets, expensive international holidays, and lifestyles are attractive but avoidable. There are multiple credit cards and personal loans available with so-called low-interest rates and no interest rates available to serve our needs. But they all come with underlying perils. Any expense beyond the boundary earning is unexploded dynamite.
How to Avoid Debt Trap?
There is no way we can totally avoid all of the above traps. Best insurance from debt is living a life with wisdom and leading a life dependent on God. Let us look at successful financial living as taught in the bible. Before I write them down, I want to make it clear this is not about prosperity Gospel. This is the ways to stop loving the world and living a life obedient to God. The below ways are not going to make us rich. But will make your life more aligned towards God.
Store Your money in Heaven:
Solomon says, Whoever is kind to the poor lends to the Lord, and he will reward them for what they have done. Someone said the only money you are going to see in heaven is the money you put in the offering box, while you are on earth. Let’s learn to give and learn to worship our Lord with our money, while we have.
The secret of Contentment :
Surrendering Life to God
The author of human life is God. We came to this world to fulfill a purpose, which we will never understand unless we surrender our life to God. Life becomes meaningless when the author of life is thrown away from his own narrative. We can never foresee what will happen to our job and business tomorrow. But the creator knows. A life surrendered on the altar of God flourishes and lives peacefully even in the midst of storms.
Dear friend, let’s pray to Jesus to protect us from the trap of debt.