Credit is what keeps you from knowing how far past broke you are.
Personal debt in the U. S. increased at the rate of $1000 per second and consumer installment debt has mushroomed to a point where it takes approximately $1 out of every $4 that consumers earn after taxes to keep up the paymentsnot including the home mortgage.
For over 250,000 Americans, the burden of debt is so great that he/she declares bankruptcy. There are even more serious consequences of this financial tension created by debt: 56% of all divorces are a result of financial tension in the home.
“The wise man saves for the future but the foolish man spends whatever he gets.” Proverbs 21:20.
Since statistics show that the average American consumer has installment payments equal to 17 to 18 percent of his take-home pay, obviously large numbers of persons are overspending. An increase in bankruptcies of over 50% more each year than the previous year, would indicate that such overspending is leading many into financial disasters. And the Bible calls such spenders fools! I dont know many people who deliberately choose to be foolish.
When it comes to money, the way to be wise is to be a saver. Here are four simple rules given by the late financier, J. P. Morgan, for saving money.
1. Start early. Today is the day to start your savings program.
2. Save a definite amount. 3. Save regularly and systematically.
3. Employ your savings productively.