finances

“There are two kinds of people in our world: those who pay interest and those who make interest.” I heard Andy Stanley share this statement a number of years ago and I'm reminded of it whenever I think about how to manage my financial resources.

It’s hard to imagine anyone wanting to pay interest instead of making it, but it easily happens when we don’t transfer our intentions into a plan. And sometimes the best motivation for making a plan is recognizing that our current pathway is headed toward trouble.

Mary Hunt is a bestselling author whose most recognizable book is called Debt-Proof Living. Here are her top warning signs that your interest-paying tendencies are headed toward dangerous debt trouble.* 

You’re living on credit
For example, you carry a credit card balance from month to month or you pay for things with credit because you don’t have enough money in your checking account.

You pay your bills late
You count on next month’s paycheck to pay for this month’s expenses; you schedule your payments based on the balance of your bank account instead of the deadline of your bill; you willingly pay late fees because you think of them as the price you must pay for your current financial situation. 

You’re not a giver 
You like the idea of giving money to your church or a charity and you plan on doing this once you have enough to cover your necessary expenses; you call yourself a giver-in-kind because you regularly drop off your old stuff to a thrift store; you reason that you can’t give what you don’t have.

You’re not a saver
You reason that once you cover your necessary expenses, you’ll be able to save a lot; you think of your available credit as your savings.

You dream of getting rich quickly and living an extravagant lifestyle
You find yourself wanting excessive things even though you can’t pay for what you currently have; you quickly show interest in the latest get-rich-quick opportunity. 

You worry about money
You think about money often; you answer your phone with hesitation or fear; you think of ways to hide purchases or bills from your spouse.

You overspend your checking account
If you’ve fallen into your overdraft protection plan more than twice in the past 12 months, this is a serious indication that you’re about to be snapped into the jaws of the debt trap.