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ARE CREDIT CARDS OK…IF YOU PAY THEM OFF EVERY MONTH?

I’m starting something new.  I’m calling this Bible money answers. 

Since this is Bible money answers, we’re going to go to the Bible and figure out, should you use credit cards if you can pay them off every month?  Or is it best to just avoid them all together? That’s what I’m gonna talk about in this message.

This may be surprising to some people, but if you’re using a credit card, even if you’re paying it off every month, you’re borrowing money.

If you’re using someone else’s money, even if you pay it back the next day, it’s still borrowing money. And the Bible has absolutely nothing good to say about borrowing money.

In Proverbs 22:7, it tells us that the borrower is slave to the lender.  In Deuteronomy 15:6, it tells us that we are to lend, and not borrow.

Now, don’t get it twisted. This is not a salvation issue.  This is not a sin. And if you borrow money, you’re not going to go to hell or anything like that. As a matter of fact, in Second Kings, there’s a story about a good God-fearing man that actually died in debt.  But, then the creditors were actually coming to take his kids in the slavery to repay his debt.

So as you can see, the Bible is really telling us to stay away from debt as much as possible!

If you are using a credit card and you are paying it off every month, I applaud you, congratulations. Because 58 million Americans are carrying a balance from month to month.  Thankfully, you’re not one of them.  But, there are two major risks when you use a credit card, even if you’re paying them off every month.

Risk number one is that you spend more money.

Have you ever been out, maybe this is you or maybe it was a friend, but they said, “Let me buy that so I can get points.”?

See these credit card companies are selling a product, a credit card is not a service, it’s a product that was created to make them more money.

What they’ve done is they’ve attached rewards or benefits to using your credit card.  In turn, that causes you to spend more money because you think you’re being rewarded, subconsciously.

And there was a study, that was actually published in Forbes, that said you spend up to 100% more if you use a credit card, instead of cash or a debit card.

Maybe that’s not you.  Maybe you’re responsible.  Maybe you don’t spend more money.

There’s a second major risk to using a credit card and that’s the power of habit.

Try this: fold your arms.  Now, fold your arms the other way.

Something that simple. You have to think about doing. And that’s the power of habit.

Now imagine you’ve been using your credit cards, time after time, for several years and you run into a hardship.  Subconsciously the habit of reaching for your credit card and paying for something has already been developed. So even if you run into a hardship and you can’t pay the card off that month, the habit may force you to still use your credit card.

The number one reason people file for bankruptcy is credit cards.

And I highly doubt that any of them had the idea that… “Hey, I’m gonna charge this credit card to end up paying interest, and even worse, into filing bankruptcy.” That’s no one’s intentions.  But, life happens. The power of habit is real.

So every time you use that credit card it increases your risk of falling into debt. Someone can smoke cigarettes for 50 years, and never die of lung cancer, but why would you wanna take that risk?

No one has ever become wealthy because they use credit cards, but there’s a bunch of people that have become broke because they use credit cards.

Now, the last thing I want to point out is that there are a lot of people that use credit cards because of the points.  This makes a lot of sense.  You can buy the stuff you’ve already been buying, plus you can get some free stuff from it. 

I challenge you to do this instead of using your credit card.  To earn money to buy a hotel, or by a flight, why not download the Acorns Investing App.

The Acorns App is pretty cool because you can buy something on your debit card and it’ll round up the change, put it into an investment account for you.  You can use the money for stuff like hotels credit cards, or whatever you want.

And it works like this: If I go to the store and I buy something for $1.70, it’ll round to the next dollar, which is $2.00, and take that 30 cents put it in a separate account for me.  My wife and I use this to buy plane tickets and hotels all the time.  Also, it takes a lot less money to earn a flight and a hotel using that money then it will using a credit card.

On top of that, if you use this Acorns link: https://acorns.com/invite/QQEQ3R you get a little extra money in your account when you open it.

So, my recommendation is you stay away from using credit cards.  Even if you pay it off every month, you’re still using someone else’s money, which means you’re borrowing.

And look, we all make mistakes.  If you’re in a position now where you’ve made some financial mistakes, and you’re trying to turn your financial life around and you find yourself struggling with debt, check out my Bible Money Makeover. It’s a free three-part video series.  The first video is all about helping you get out of debt, and stay out of that.

You can start watching that right now by CLICKING HERE.

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