Are You Dealing with Credit Card Debt?
Today we’re going to look at credit card debt through the eyes of a Prosperous Soul.
Based on a recent study, the average household credit card balance in the United States is about $15,600. The average credit card interest rate is about 15 percent, which means Joe American is paying around $2340 a year in interest payments.
Credit card interest means that in addition to the goods themselves, we are paying an extra $2340 year. In other words, whatever lands on our credit cards will be higher by about $2340.
Would you have bought those items if they were that much more expensive? Many of us ferociously shop online and haggle over the hard price of an item, making choices because of a few pennies. But what creeps up on us is the additional financing that comes from interest. When we don’t quickly pay off the balance on our cards, we can find ourselves in the averages category.
Get in the Habit of Paying Attention
If you use a credit card, you have to manage more than just the cost of what you bought. You also have to manage the interest, which will eat away at you. Over long periods of time, you’ll also have to deal with inflation—your dollar is “smaller” now than when you first started.
If you’re trying to pay off your credit card debt, one common strategy is to transfer your current balance to a credit card with zero interest. This isn’t a bad idea, but whenever you’re dealing with a credit card, you need to stay alert.
You are the pilot of your home, business, organization—anything you are stewarding relating to money. When you look into an airplane cockpit, you’ll see an overwhelming number of dials and gauges. A pilot can’t afford to be distracted, and that’s exactly what lenders want you to be. They are counting on you to be tired, so you’ll look away from the gauges and start to relax, not paying attention to the details of your flight.
If you choose to transfer your balance or refinance your loans, understand that you’re fiddling with some switches around the cockpit. It is wise to pay attention and keep careful watch of how your flight is going.
What Credit Card Debt Is Not
As Christians, we tend to blend financial debt and sin because we feel guilty about the condition of our finances. If you have credit card debt, I want you to hear me on this: Your debt is not sin. It is a storm you have navigated into, and now you need to navigate out of it.
If you find yourself in the storm of credit card debt, it is not the time to condemn yourself or allow the enemy to make you feel hopeless. The enemy wants you to be hopeless. He wants you to feel like a failure or a fool, but neither of those things is true. You are an inspired child of God, and you are going to navigate through this thing.
If you’re feeling guilty, fearful, or like there is a stigma on you because of credit card debt, put your hand on your heart and speak this prayer aloud:
Father in heaven, I thank You that You love me and that no one is “less than” in Your eyes. James 1 says that if anyone lacks wisdom, they can ask You and You will give it abundantly to them. I ask for wisdom now.
In the name of Jesus, I break off the cloak of shame and despair from my shoulders, and I give it back to the enemy who wanted to put it on me. I return it to the sender. Now I rest in the understanding that You are not finished with me yet. With You, it is not a matter of if but when. I know You are going to give me wisdom and move on my behalf. In Jesus’ name, I pray. Amen.
God bless your Prosperous Soul.