Today on MoneyLife with Chuck Bentley

There are many different degrees of financial bondage. This program will have something for everyone on the financial spectrum, from those in bankruptcy to those who are wealthy.

As we go through each one, identify where you are and learn what action steps you need to take to get free. And yes, millionaires can be in financial bondage, too.

If you’re on the verge of bankruptcy or recently filed for it, you’ve likely had to sell all your personal assets; you have no credit; you may be depressed, ashamed, afraid, and feeling stuck. You need to pray and turn to the Lord.

God wants to help you even in your mess. This is a great opportunity to repent of your foolish mistakes that got you into financial bondage. Ask God for restoration in your mind and heart to change the way you think about money. Then, thank Him for your circumstances. I know that’s difficult, but God disciplines those that he loves.

Next, take responsibility for the problem. You may need to forgive those you blame for causing your situation.

Create a plan for recovery by reaching out to someone who can help you. Your plan needs to include repaying your creditors. Commit to being honesty and humble. God will give you hope beyond your circumstances. God is our redeemer and deliverer.

We can have hope even in the worst circumstances as Joseph and Daniel experienced. If you borrowed money, you promised to pay it back. Fulfill that vow. God will use the experience to help you grow. Christians should not walk away from their homes because they can’t pay the mortgages.

Another level of financial stress is for people who haven’t declared bankruptcy but are being harassed by collectors. You may be arguing with your spouse about money. Your credit cards are maxed out. Your constantly behind on bills and you don’t feel like you’ll ever get ahead.

Here are the action steps that you need to take:

1. Pray and ask God to intervene.
2. Call Consumer Credit Counseling Service, (1-888-771-HOPE). CCCS will work with you to contact your creditors and develop a repayment plan.
3. Contact a Crown Money Map Coach. Crown offers free coaching through volunteer Money Map Coaches.

It will hurt your credit score, but you don’t need more credit. You can’t use credit to get out of debt. Take the pain and start the long process of repayment. You may be able to increase income and decrease expenses.

Living beyond your means is another level of financial bondage. About 60% of Americans are at this level. You spend more than you make. You make minimum payments on credit cards and have little hope of getting out of debt. You have no savings for emergencies and you feel continual financial pressure.

You need to set aside 3-6 months of living expenses in an emergency fund. When you get that money saved, start paying down debts like car loans and student loans. Pay them off before you go back to saving long-term, also focus on paying off house.

Your current needs are more important than retirement. If you go into retirement debt-free, you’ll be better off than most even if you have little savings. Reprioritize what you value. If you’re living above your means, it will create financial turmoil.

Another level of financial bondage is spending everything you make. Living right at your means often makes people worry about the future. You fear the unexpected that could put you in financial trouble. Here are your action steps:

• Pray and turn it over to God
• Get on a budget
• Stop using credit cards and go to a cash system
• Reduce overhead and increase income to create financial margin
  Start giving and saving

If you have no way to protect yourself, you’re vulnerable to destruction. Self-control is a fruit of the Spirit, so financial discipline comes from the Spirit. The lack of self control is why people can’t control their spending.

People can be in financial bondage even if they live below their means. They have more income than expenses. They pay their bills on time and they regularly save. They are working to get debt-free and may be investing.

But you're still in financial bondage if you have put your security in money. You may be afraid of losing what you have and that ear of loss drives you. You have a tendency to hoard resources and you may have a fear of being generous. Here are your action steps:

• Grow in generosity
• Get involved with Crown Financial Ministries
• Volunteer to get trained as a Money Map Coach, Seminar Instructor or Small Group Study leader
• Reach out to others who are struggling and may not have hope. God can use you to minister to them

The final level is being free from financial bondage. You do’t worry about debt, investments, or material possessions. You have money set aside and are using it for God’s kingdom and people. You are experiencing joy from the Lord and living out God’s purposes for your life. Here are your action steps:

• Join Crown Financial Ministries
• Help us move God’s people forward. There are so many ways you can make a difference
• Don’t be silent, give your testimony and tell other people of God’s goodness, the difference He makes in your life, the difference in following Him everyday and using His principles versus the world’s ways
• If you’re free, God wants to use you

If you're financially free, we'd love to hear your story. Please email me at ChuckBentley@Crown.org.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
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• Crown Mvelopes