One minute read.
Daily Reading: Isaiah 1:1-2:22, 2 Corinthians 10:1-18, Psalm 52:1-9,
Daily Verse: “Be not one of those who give pledges, who put up security for debts.” Prov. 22:26
Foolish pledge.
Making financial commitments, you can’t keep leads to ruin. The housing bubble of 2008 exemplifies what happens with unkept pledges. Fannie Mae and Freddie Mac offered loans to people with low credit scores and a higher risk of defaulting on loans.
The lenders then sold the loans to large commercial investors bundled together as mortgage-backed securities. In the fall of 2008, people began defaulting on their loans, causing a collapse of financial markets and a global recession.
Americans began using credit cards in the 1950s, but exploded in 1980, becoming a natural way of life. As a country, we went from saving to spending on credit, contributing to the financial crisis of 2008.
The U.S. consumer debt level recently passed 1 trillion dollars because of inflation and high-interest rates, leading to another financial crisis.
Avoiding financial stress happens when we manage money instead of letting it control us.
Lord, forgive us for overspending. Please help us learn wise money management tools that will allow us to live debt-free, save money, and sleep well at night, knowing we didn’t make pledges we couldn’t keep. IJNIP. Amen
