Credit

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 payments—not 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.

Howard Dayton, in Homemade, 6-86.

“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 don’t 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.

George Fooshee, Homemade, Vol. 11, No. 4, (April 87)