Revolt Against Debt

In my last post I told about the Total Money Makeover that Shagga and I are going through. In this process we have decided to STOP USING CREDIT CARDS!

Credit cards and credit in general is deceptive. It gives us the illusion that we will be able to keep the money we have now and get what we want now. The truth is that the credit puts us in bondage. Over time it sucks the life right out of us. Proverbs 22:7 says, "the borrower is servant to the lender."

Also, with credit we spend more. If we spend cash we spend less. This is a simple concept -- not easy, but simple!

Here is a list of some of the Myths and Truths from Dave Ramsey's web site:

The Truth About Debt
Myth: Debt is a tool and should be used to help create prosperity.
Truth: Debt isn't used by wealthy people nearly as much as we are led to believe.

The Truth About Credit Card Debt
Myth: Aren't there positive uses of a credit card? Like rebates and airline miles?
Truth: Responsible use of a credit card does not exist. Credit card debt is a major problem in America.

The Truth About Teens and Credit Cards
Myth: Make sure your teenager gets a credit card so he or she will learn to be responsible with money.
Truth: Getting a credit card for your teenager is an excellent way to teach him or her to be financially irresponsible. That's why teens are now the #1 target of credit card companies.

The Truth About Debt Consolidation
Myth: Debt consolidation saves interest, and you have one smaller payment.
Truth: Debt consolidation is dangerous because you treat only the symptom.

You can find several of the other myths and truths at the end of The Truth About Debt.