What you should know
about debt
Debt. It can be a wonderful
tool or a terrible task master! Unfortunately, for
many people, they casually court debt as if it is
something simple and compassionate instead of
recognizing it as what it really is—ruthless, cold,
and indifferent. What gives debt all of its teeth?
It is nothing less than “interest.” Interest is what
makes debt so powerful. With this more accurate
understanding it is easy to see where the attribute
of debt, interest, can be a very handy guy to have
on your side or a very formidable foe to fight. The
following explanation of interest sums up the
nature of debt nicely:
"Interest never sleeps nor sickens nor dies; it
never goes to the hospital; it works on Sundays and
holidays; it never takes a vacation; it never visits
nor travels; it takes no pleasure; it is never laid
off work nor discharged from employment; it never
works on reduced hours; it never has short crops nor
droughts; it never pays taxes; it buys no food; it
wears no clothes; it is unhoused and without home
and so has no repairs, no replacements, no
shingling, plumbing, painting, or whitewashing; it
has neither wife, children, father, mother, nor
kinfolk to watch over and care for; it has no
expense of living; it has neither weddings nor
births nor deaths; it has no love, no sympathy; it
is as hard and soulless as a granite cliff. Once in
debt, interest is your companion every minute of the
day and night; you cannot shun it or slip away from
it; you cannot dismiss it; it yields neither to
entreaties, demands, or orders; and whenever you get
in its way or cross its course or fail to meet its
demands, it crushes you" (J. Reuben Clark Jr. in
Conference Report, Apr. 1938:103).
Sadly, too many people find themselves slaves to this
monster called debt instead of truly enjoying life. Debt
and money problems rank up there among the top reasons
why there is so much of divorce, unhappy homes,
marriages, and even suicide. The following two key
suggestions can help you change the tables of
stress-filled worry to peace of mind. They are proven
remedies and can make all the difference in the world.
Suggestion #1: Do not, ever, go into debt for
consumer goods or purchases. By “consumer goods or
purchases” I mean perishable items that have no
intrinsic or substantive value for your well-being, or
that can add value to your situation. For example, food,
toys, trips, jewelry, entertainment, wants, etc.
All of these things, while pleasurable and nice, do not
add any value to your need or betterment in life. Good
examples of items worth going in debt for might include
vehicles for transportation, a home, and an education.
All of these examples are necessary, or “critical” to
insure for a better quality life in the future. Other
than for these kinds of critical items you should adopt
the practice of “don’t buy it unless you can pay cash
for it.”
Suggestion #2: Develop a modest and workable
budget and stick to it. Budgets help define what is and
what isn’t necessary in your day-to-day living. Budgets
position you where you can identify real needs and
differentiate them from the wants. More financial
problems and serious debt come to individuals who do not
learn to identify needs from wants than just about
anything else. Establishing a budget will help
reduce common financial mistakes that many fall into who
otherwise would not have done so with a good budget
outlining their spending habits.
Following these simple yet powerful suggestions can put
you on the road to a much more stress-free life. The
peace of mind that accompanies those who “owe no one
anything” is a great feeling. It empowers you to make
better choices for your life. Instead of reacting in
crisis mode, you will find that you can make decisions
based on purpose and meaning. |
