Tuesday, December 15, 2009

Bail-out of Loans

What's the deal with all the 10 billion dollar bail-out loans? Since when did a loan bail anyone out? Loans bind us in but don't bail us out. Be careful this Christmas season of credit cards, lines of credit, and loans of other kinds. They won't bail you out, they will bind you up.

The problem for many of us is that we don't think we are taking out a loan when we are spending on a credit card or line of credit. If you buy a Big Mac on a credit card that is not fully paid off every month, you just took out a loan for that Big Mac! (Not a really high return on investment.)

Some people are thinking to themselves..."but sometimes a loan could be a good thing for a house or a business". And of course this is true, but the problem is that sometimes we use that as an excuse to take out the other kinds of loans (the bad kind).

I don't want to rant but I have just seen too much carnage in this area. So many people regretting poor decisions. It takes years of tough, smart decisions to pay for one stupid decision.

Have a wonderful, blessed and joy-filled Christmas, without going into debt to have it.