In the credit card world, you hear many people sigh at high interest rates and why credit cards are not good for people with serious debt. It is easy for young spenders to fall into these traps, so we sought out a principled financial adviser to sort through some questions about these problems.
Peter Anderson is the owner of BibleMoneyMatters.com and a respected voice of wisdom in the financial world similar to Dave Ramsey. He is known for helping people get out of excessive debt with detailed financial plans.
Since the search for the best credit card rates online requires foresight and planning, we are pleased to present Peter’s thoughts on some worthwhile financial issues, especially since the principles guiding his advice will remind readers of their own goals and priorities for their finances. Thank you, Peter, for your advice!
What resources would you recommend to readers trying to pay off excessive credit card debt?
For those considering their current financial situation, when does excessive spending begin to become a problem?
I think the spending becomes a problem when it gets in the way of your short and long term goals.
Sitting across the kitchen table from a young couple preparing to begin making significant financial decisions, what advice would you most strongly communicate?
You’ve recommended a cautious approach to debt on Bible Money Matters. What experiences and influences produced this philosophy?
Peter: Thankfully we never had to deal with an overwhelming amount of debt, only a few thousand in credit card debt and student loans. But I’ve seen first hand just how hard having a mountain of debt can hit a family, causing them to have to work multiple jobs, forgo their financial goals, and look for a financial Plan B when everything starts falling down around them.
Yes, there is a place for debt, but to me the situations in which to use debt are few and far between because debt has a way of making you a slave to it, reducing your freedom, and hindering your forward progress.
You strongly emphasize giving as part of your financial philosophy. How do beliefs and life goals fit into a person’s spending?
We’ve found, however, that when we give it is often even more of a blessing to us, than to those we give to.
Because we have a strong belief in giving, we’ve made that a part of our family’s budget, and a part of monthly goals. Giving comes out of our paycheck first, and everything else comes after that.
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