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How Big Is Your Debt

4th Sunday after Pentecost

How Big Is Your Debt

Text: Luke 7:36-50

Let’s say that you are the average American.  As the average American, you have debt.  Most people agree there are “good” kinds of debt and “bad” kinds of debt.  Good debt would be your home or land mortgages, school loans, and possibly vehicle debt.  “Bad” debt would be other kinds of loans and especially credit card.

Now, since you are the average American, let’s say you have $10,000 in credit card debt (which is about the American average these days).  Some of you may gasp in horror at $10,000, others of you might say, “I wish!”  But you are hypothetically an average person right now, so you have $10,000 of debt.

Most wouldn’t fret too much about that debt.  Sure it’s debt and all, but it’s not too bad.  It’s about 50 days of work, maybe a fourth of a year’s wages.  Not too bad.  You make some payments.  Yeah, there’s interest, but you chip away.  You know you’ll probably pay it off eventually (assuming you don’t spend more).  As long as you make regular payments, the only penalties you suffer are a little lower credit score and lots of wasted dollars in interest. Read the rest of this entry

What Would You Do?

4th Sunday after Pentecost

What Would You Do?

Text: Luke 7:36-50


What Would You Do?  What Would You Do if you had a big debt to pay?  Most of us have debt.  It’s a very American thing to do.  We have debts of all kinds.  We have mortgage debt.  We have car loan debt.  We have college loan debt.  We have credit card debt.  We have debt to banks, debt to family, and debt to friends.  Some have a few of those kinds of debt.  Some have all of those kinds of debt.

But What Would You Do if you had a really big, really bad debt to pay?  I’m not talking about overextending yourself on a house or a car.  I’m not talking about getting stuck at a 10% interest rate when the market is at 5%.  I’m not talking about getting hit with late fees or interest.

What if you had made a number of bad choices and really put yourself out there.  You got yourself in a bit of trouble and racked up a huge debt.  Suddenly you realize that this debt was $7,500, and it was due immediately.  Uh oh!

But What Would You Do if your debt was even larger?  What if you got yourself in a bit of trouble, racked up a $7,500 debt, but then kept going?  You continued to make bad choices.  You continued to get yourself in trouble.  You increased your debt.  Suddenly you realize that this debt is not $7,500 but $75,000.  It’s a debt that might cost you 500 working days—perhaps two years—to pay off if 100% of your wages were garnished.  (If you make more money or have more money, imagine the numbers are higher.  Maybe $75,000 and $750,000.) Read the rest of this entry