The dos and don’ts of debt management

Debt is a legally building agreement that, in the future, will require you to pay for what you’re using today. That is negative living — and it can strangle your life. Debt can hold you back from many great things in life. 

It is unwise to enter debt unless the financial return for doing so will be greater than its cost. For example, a loan for education beyond high school or to start a business often meet this criteria — while loans to purchase clothing and furniture do not. Even a house is not guaranteed to appreciate, and it’s purchase should be entered into very carefully.

Before taking on debt, consider these dos and don’ts:

Do consider the level of financial and emotional stress the debt will cause.

Do consider whether you and your spouse agree to take on this debt.

Do consider how this debt will have an impact on your ability to achieve other goals you have set.

Do consider whether this debt will prevent you from being able to embrace God’s plans for your life.

Don’t borrow to get what you need now. Work and trust God to provide what you need.

Don’t guarantee another person’s loan, which is the same as taking on the debt yourself.

Don’t borrow to get in on a  get-rich scheme. Remember that assets are accumulated little by little.

Don’t rely on the future. Your salary may not increase. Your job may be cut. Plan for the future — but live in the present with the means you have.

We hope you’ll consult with your financial advisor for a plan to liquidate liabilities. We certainly invite you to contact us here at Lighthouse Financial, too.


All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.



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