1. It helps you to identify the cause or root of the problem (kill it and the plant dies)
2. By understanding the cause you can avoid it in the future
"The wise man learns from his mistakes but the fool is condemned to repeat them."
All too often we go through life, fixing one problem just to have it reappear. The reason is that we never got to the root of the problem. Problems can be like weeds, if you don't pull the root the weed just grows back. The same is true with debt problems. Time and again people enroll in debt reduction programs just to get back into debt all over again. It's so prevalent that the lending industry even has a name for it...."Reloading."
You take out a home equity loan to pay off credit cards and then reload the cards. Some people who are in debt today tell me they just filed bankruptcy a few years ago. So, let's find the root of the debt problem. The Bible tells us that our thinking influences our condition. "For as he thinketh in his heart, so is he..." Proverbs 23:7
It's easy to blame the credit card companies (yes they make it too easy to get into debt). We can blame our spouse, partner, children, the banks, the economy, our destiny, even God Himself, but the truth is the real reason for your problems is you! More specifically it's the way you think about money and credit.
We live in a credit oriented society that teaches Cash Flow is King. All that matters is that we can afford the monthly payment. If we get a $400 a month raise we can afford to buy that $400 a month car or boat we always wanted. The problem with this philosophy is that we accumulate more and more debt. After a while, we are literally standing with one foot on a banana peel and the other in the financial grave. Any reduction in income and we are in serious trouble.
It's amazing how many people say their debt was caused by job loss, income reduction, divorce etc. These things are usually what makes the debt problem apparent, but the reality is that the debt existed before those things happened. For example, many people say that the cause of their debt was divorce. However, when they examine their situation, they find that debt existed before the divorce. In many instances they even fought about the problem while they were married, so the reality is that the divorce was actually the result of debt, not it's cause. The same is true for job loss, etc. They just made the problem apparent. Except in rare circumstances like catastrophic illness or medical problems, debt existed before the layoff etc. These items just made the problem apparent.
What if you weren't in debt before the layoffs, illness? What if you had no credit card payments or personal loans? What if your house and cars were paid for? Your income needs would have been dramatically reduced. Would the pay reduction have forced you to incur debt? In most cases no!
This can be an emotionally charged topic. Our purpose here is not to fix blame, but to fix problems. Once we learn to think about money and debt differently, we can start to produce different results. When we take personal responsibility for our situation we can realize two important things. "I am the cause of my debt, and if I caused it I can fix it."
Up until now you can blame your lack of understanding. No one ever told you the truth about credit and debt before. The school system never taught you this, certainly the lending industry didn't explain it, and your parents didn't understand it either. So you can blame your lack of understanding....up until now!
Our goal is to teach you the truth..."Then you will know the truth and the truth shall set you free".
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