Cry Freedom!!!

The best thing about writing a blog like this is that you have the ability to influence literally tens of people. I’ll be up front about it, I’m going to try to influence you if you read this.

In light of our recent economic issues in this country, I want to talk about money. This is the beginning of another top ten series. This one will be on money and finances. Having worked in the banking industry for more than 13 years, I have some insight and I have seen some of the most common and most terrible mistakes people make. Now, as a pastor, I know that most of the people in my congregation are in some sort of financial trouble and I can stand up and say that my wife and I have been through the financial wringer in the past and learned some lessons through the skin.

If you've been laid off, lost your home to foreclosure, had your car repoed, or been stressed by collectors, this series is for you.

I’ll bet you didn’t know it, but one of the most common topics in the Bible is money. Now, don’t run scared, there’s no organ playing and there won’t be anyone coming up and pass you an offering plate. No, the Bible is full of sound financial advice and it will be on this basis that I write this series.

On my journey to becoming a pastor, I made the commitment to preach debt free. I didn’t want debts and creditors haunting me as I taught. I was leaving a job making quite a lot of money annually and going back to college while working in ministry. I knew that, even after I got my degree, pastors don’t make a lot of money, so it seemed wise to have this goal. God provided. My wife and I sold our home and made enough from the equity to pay off most of our debts. We then worked very hard to pay off the rest. It took several years and a lot of sweat and tears, but we are there. We have one left: my student loans. We’ll get to that later.

To establish my bona-fides in this, I want to be transparent: I have been in deep debt in my life. I have known the fear of hearing the phone ring and knowing it must be a collector. I know the stress of receiving my paycheck and knowing that I don’t have enough for all the bills that are due this week. When I went to college the first time (right out of high school), I received credit card offers from every company out there. I applied for and got them too. I believed all the foolish advise out there about using credit cards to establish credit. I went on a shopping spree that lasted for years and thousands of dollars. After I was married, it took my wife and I more than a decade to get out from under that debt, and by that time, we had piled up other debt together. Thank you God, for helping us to get clear of that trouble.

The problem with debt is that you just don’t need it. People tell you that you do, but you don’t. I personally advise that you do NOT buy anything on credit except a home and an education. And then, pay those off as fast as you can. We’ll talk about that later.

The truth is, almost everyone I know has a similar story. They know that every dollar that comes in from their hard earned paycheck has to go back out the door to pay creditors. There’s that slavery.

As a banker, I worked as a loan processor and later a loan officer. I worked in all areas of consumer lending from auto finance to equity lines and loans to first mortgages and brokers. Rarely did I have a customer who was truly financially sound. Twenty to thirty thousand dollars of consumer debt was the norm and they were coming to me for more.

Near the end of my banking career, I worked for a mortgage broker. We put the broke in broker, because the company did B and C paper lending. That’s the people with bad credit to me and you. We sold 125% Equity Debt Consolidation and Home Improvement loans to people who were already in trouble. Every single day, we received 6-8 Notices of Sheriff’s Sale and Notices of Foreclosure for the people we had written loans for. That means 30-40 people every week were being financially destroyed and losing their homes by the company I worked for. My bosses didn’t care. They’d made their money and sold the loans to other investors. My conscience couldn’t handle it and I lasted just under six months.

Most of the people I have lent money to in Banking didn’t really need the money. They needed to get their finances under control. They needed to quit buying all the crap: boats, cars, second cars, motorcycles, homes, second homes, home improvements, ATV’s, TV’s, etc., etc., etc. They needed someone smack them in the head and say, “What the hell do you think you’re doing?”

They had become slaves to their debt and were using more debt as the answer. That’s like trying to dig yourself out of a hole by buying a new shovel and digging faster.

My advice to you is this: Don’t borrow money for anything except to purchase a home or get an education. If you have to borrow money for something, you can’t afford it. Period. What’s more, you don’t need it. Period. I'll give you some more information on how to actually reach this point, throughout this week.

My wife and I have weathered this recent economic downturn quite well because we weren’t up to our ears in debt anymore. We are now working on saving and investing for the future so that we can buy a home. We want a second car, but we will be saving to buy it, not going to the dealer and asking to borrow money for one. We are no longer slaves to lenders and let me tell you, it feels really good. I say this, not to brag, but to encourage you to consider this as a path for yourself. It really is possible.

Over the next ten days, I will share some tips on how to become free, to break those bonds of slavery to lenders. Just hold that image in your mind of Mel Gibson from Braveheart throwing that sword through the air and yelling, “FREEDOM.”

Disclaimer: I am not a trained financial advisor, I just play one on this blog. Seriously. Get good financial advice in life. My information comes primarily from personal experience, working in consumer lending in the banking industry, and watching friends, family, and parishioners struggle.