Pure Grace

I used to think Dave Ramsey was a way out of touch… Credit cards are same as cash, our purchases are protected. Why shouldn’t we use them same as cash? Well I have seen the light, credit is bad in all forms. Especially in light the past weeks financial crisis. A little credit goes a long ways. If you can get a little credit eventually you can get alot of credit. Imagine where our current financial picture would look like if Subprime mortgages didn’t exist. A simple credit card with a limit of $2000 leads to a good FICO score and a $250,000 subprime loan!
I remember hearing just a few months ago, real estate is really hot, it’s not a bad idea to use your homes equity to buy up real estate for investment purposes. Or hearing from a church that we have an opportunity to take on additional debt “in faith” to finance a building purchase, and in a few short years we’ll be able to sell it for a profit. Easy credit creates an environment for extreme risk. I don’t believe that God’s plan involves extreme risk, Dave Ramsey has a great article on what the bible says about Debt here’s a couple texts from that article; Proverbs 22:7 states that “The rich rule over the poor, And the borrower is servant to the lender.” And Proverbs 21:20 “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” The silver lining in this economic meltdown is that Cash is King, if you have Cash you will still be able to survive and thrive.