Debt is something that robs a lot of people of hope. According to Hal Lindsey, “Man can live about forty days without food, about three days without water, about eight minutes without air…but only for one second without hope.” Simply put, debt puts a peso sign on how much of your future you spent in the past.

After going through a debt problem myself for the many years of my adult life and eventually being free from its clutches, I made it a point to  spend so much time telling others to get out of debt or at least manage their debt properly.

I have said time and time again the Bible is the best resource for wisdom on personal finance, among many others. But here is a huge “news flash” for you: With over 1,300 passages on wealth, the Bible is virtually silent on debt, at least to the borrower. Only ½ of one proverb tells us, “… the borrower is slave to the lender” (Proverbs 22:7). Since no one wants to be a slave, enough said. How do you get out of debt? Simply put, you need to be a good steward of your finances. You may want to read my other posts on debt or pick up my book No Nonsense Personal Finance, there is a chapter there dedicated on getting out of debt.

The Bible, however, has considerably more to say to the lender, such as those whom have been entrusted with money are instructed to use it mercifully. Nothing drives this home like Jesus’ parable about the servant who, after being forgiven a fortune by the king, fails to pass that same mercy on to another servant. Instead, he chokes him and throws him into prison for a relatively minor debt (Matthew 18:21-25). Jesus tells this parable to Peter, who like us, probably thought he was being surprisingly generous by offering to forgive his brother up to seven times. But Jesus makes it very clear that this is just the start. Jesus’ teaching echoes many other encounters people had with him, like the woman who, having lived a life of sin, came to him at a Pharisee’s house and wet his feet with her tears, then kissed them and wiped them with her hair (Luke 7:36-48). Her response to Jesus was the exact opposite of the inhospitable Pharisee, who offered no welcome to his guest. Why? Because the one who has been forgiven little loves little. But the one who has been forgiven much loves much.

Where does that leave us? If you are a lender, them you need to be merciful. If you are a borrower, you need to be wiser.

So what if you’re one of the millions of people who are trapped by debt? I have great news for you. God, not money, is still your master.

Money might dictate when you serve, or where you serve, but it can never dictate who you serve.

Whatever your financial position, find comfort in this: “…the Lord will reward everyone for whatever good they do, whether … slave or free” (Ephesians 6:8).

Need wisdom with finance? Join me and Dodong Cacanando this August 19, 2017. Click HERE for details.

There’s a big debate with credit cards. Is it good or is it bad? Others prefer credit over cash. It’s safer to carry, and credit cards offer perks and discounts in which you can actually save rather than spend more. The other half think credit cards are evil. Your money is eaten up by interest rates, and before you know it, you’re buried in credit card debt. So which is it, really? Are credit cards good or bad? It depends really. It depends on how you view credit cards and how you handle money.

So are you ready for are credit card? If you are, you can use credit cards to your advantage; however, if you’re not ready for one yet, then you might really think plastic is evil. Below, I prepared a guideline you can follow to determine whether or not you’re ready to have a credit card.

You’re ready for a credit card if:

You spend less than you earn

If you always have savings by the end of every month, then that is proof that you know how to handle money. You’re not finishing your salary up to the very last centavo or racking up debt or ‘utang’. You already have the mindset that saving is a necessity, and there’s no need to finish your entire salary. Even better is if you save first before you spend, wherein you automatically transfer a percentage of your income from your payroll account to your savings, and you use the remainder for expenses. Take note though that if you get a credit card, you have to stick within your limit. This means you shouldn’t take away money from your savings to pay your credit card balance.

You can say ‘no’ to impulse shopping

The beauty about credit cards is it makes the shopping experience even better than it already is. Shopping becomes a breeze when you just hand the cashier your credit card, he or she swipes it, you sign, and voila, you can leave the shop with a new item (or more) in hand. This is bad, bad, bad for those who cannot control their spending. You’re not ready for a credit card if you’re susceptible to ‘shop til you drop’ or you can’t say ‘no’ when you see a big red ‘sale’ sign. On the other hand, if you can control your expenses and can walk past a ‘sale’, this is a sign that you have your spending in order and are ready for a credit card.

You’re NOT ready for a credit card if:

You view credit cards as free money

As mentioned above, the use of credit cards improves the shopping experience. It makes it easier, faster, and more convenient to shop. Because of this experience, others may view credit cards as free money. It’s not like debit cards in which the amount you spend is automatically deducted from your account. With a credit card, you don’t have to pay the balance right away, so technically, the Php 1,500 is still there in your account even if you already bought an item worth that much. If you think you’re going to have this mindset, wherein you see yourself paying the minimum required amount instead of the full balance, then you’re not ready for a credit card. You will just rack up interest charges by doing so and treating credit cards as free money or balances that do not need to be paid in full.

You need a card to pay back a debt or buy a ‘necessity’

Another sign which shows that you may not be ready for a credit card is when you plan to use it to pay back a debt or buy a ‘necessity’. Your sneakers broke and you’re thinking you can apply for a credit card to buy a new pair. Where’s the harm in that? You can always pay your credit card balance once you get your salary. If you do this, you’re already taking on debt by borrowing from your future salary. Even if you expect to receive your income by the end of the month, don’t treat money that is still coming as money you already have. Your credit card balance must be paid in full every month to avoid incurring interest fees. You’re not ready for a credit card if you don’t have the money to pay back the balance you will incur when you use it.

Looking for the right one

Owning a credit card is a big responsibility. If you lose sight of your spending patterns and money management habits, your credit card may own you instead of you owning a credit card. This means that you may incur credit card debt, go over your limit, or worse, keep on applying for more credit cards just to keep afloat. The guideline above is a good starting point to determine whether or not you’re ready for a credit card.

In the event that you decide you’re ready for one, keep being responsible and this means to do your research first. Don’t apply for the first credit card you see or the first agent who approaches you. Use the internet first to research which credit card has the lowest interest rate or which offers the features most suitable for you (e.g. miles, cashbacks, dining promos, etc.). To help you with your research, you can use comparison websites, such as MoneyMax.ph, wherein credit cards from different institutions can be filtered and sorted according to your preferences.

From my good friend, the deliberate blogger Larry Uy.

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I just got off the phone with a credit card company; I’ve been trying to have one of my credit cards cancelled for almost 3 months now. Come to think of it, it is now easier to apply for one than to cancel.

I can remember the time that I had 8 credit cards to my name and I can buy a 3 series BMW with them. Credit cards are loaded weapons on the wrong hand, believe me, it was my old life….

To read on please click on:http://lawrenceuy.wordpress.com/2009/12/02/christmas-frenzy/