Debt

: Eliminating the Tie That Binds..

Tuesday, December 07, 2021 1

Debt
“…Owe no man anything but to love one another “ – Romans 13:8

 Debt - A liability or obligation to pay or

render something. Something that is
owed or that one is bound to pay

 (2) Types of Debt

 Secured – Home Mortgage; Auto Loan
 Unsecured – *Credit Cards; Medical Expenses

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Debt

The Associated Press Poll

Stresses Of Being Buried Under Debt
(1,002 adults, taken 3/24/08-04/03/08, +/or - 3.1% margin of error)

60% 51%
50% 44%
40% 31% 29% 27% Low Debt Stress
30% 23%
15% High Debt Stress
20%
8%
10% 4% 4% 3% 6%
0%
Muscle Migraines Severe Ulcers Severe Heart Attack
Tension (Headaches) Anxiety (Digestive Depression
(Back Pain) Problems)
Which of the following illnesses and other health problems, if any, have you had in the
past 12 months?

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Debt
Married Couples
 Too Much or Not Enough $$
▪ Over ½ of the Marriages ending in divorce site money as the #1 issue.
▪ Lack of solid Financial plan
▪ Failure to plan for the ‘expected’ (i.e. kids etc.) & the ‘unexpected’ (i.e. job loss)
▪ Newly-wed couples in debt prior to marriage, primary problem for newlyweds

Singles
 Un-Forecasted Expenses
▪ Medical Bills – Emergencies; Long Hospital Stays; Death of Family Member Loved Ones
▪ Acquire insurance policies: Life Insurance; Medical; Car etc.
▪ Estate Planning; Will Prep

Recent College Grads

 Predatory Lending
▪ High bankruptcy rates
▪ 20 & 30 year debt obligations
▪ Low Credit Worthiness = Job Apps; Insurance Rates etc.
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Debt
Debt Avoidance: Rules of Thumb
 Live within your means
 Establish an emergency fund to avoid debt—e.g. $1,000 then 3-6
months expenses and then 6-9 months expenses
 Practice delayed gratification—save for items and pay cash
 Credit cards—pay the balance off in full each month or consider
canceling the cards in order to control your deficit spending.
 Earn additional income to pay down debt—e.g. non-working spouse
gets a job, working spouse gets an additional part-time job.
 Consider an extreme change in lifestyle—e.g. the elimination of non-
wealth producing activities such as luxury vehicles, boats, etc. Moving
to a smaller house with a lower mortgage payment.
 Work hard at reducing your debt and never give up
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‘The Bowman Basics’ …Building a Legacy
1. Pray - Seek out God’s plan for you and your Finances
2. Establish a Vision - Write down the vision and post in plain site (3 yr; 5yr; 10 yr; 30 yr)
3. Confession - Confess Wealth Generation & Management scriptures/principles over
your life and finances daily
4. Stop accumulating debt. Destroy credit cards if necessary and pay by cash, check,
or debit card.
5. Exercise Appetite Control or “delayed gratification”
 Be happy with what you have. Live within your means
 Do not spend “tomorrow’s money” today
 Institute the 24-hour rule: before buying anything over $50, wait a day to make
sure your really need it (Needs, Wants, Desire)
6. Establish a Spending Plan (Budget)
 Analyze spending habits to determine where you can cut back or eliminate
expenses. Save and be prepared for that ‘unexpected expense. It will come!!
7. Exercise Resilience & Patience
8. Set the tone, pave the path, trail blaze the road for future generations
9. Dream & Believe!!
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Q&A

Questions ?

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