With regard to finances, surety is probably the least taught and least understood principle in God’s Word. Considering the number of times the Scriptures warn against surety, its amazing to think that so few actually heed God’s cautions.

The fact that so many Christians can violate a basic biblical principle about money and seem to get away with it temporarily neither negates the truth of God’s Word nor its caution concerning surety.

In a literal sense, surety means to pledge money, goods, or part payment for a greater obligation. In essence, it is taking on an obligation to pay later without a certain way to pay. “A man lacking in sense pledges and becomes guarantor in the presence of his neighbor” (Proverbs 17:18).

What Makes Surety Wrong?

Surety is not a biblical law, but it is one of God’s financial principles. A principle is a biblical guide that can help keep God’s people on the correct financial path and out of the money traps set by the world’s economic system.

People don’t get punished for violating principles unknowingly, but they do suffer the consequences of such violations. The consequence of violating the biblical principle of abstaining from surety is that when someone takes surety that person presumes upon the future. In other words, when people sign surety for a debt, they pledge their future and presume upon God’s will.

Why is the Principle Violated?

If surety is a biblical principle, why is there so much violation of the principle of abstaining from surety in today’s Christian society (over 95 percent either have or will in the future most likely violate the principle)?

The primary reason why the principle is violated is because surety is the primary mechanism used in our society to “buy now,” rather than saving to buy. Surety allows people to buy things now that they probably cannot afford to own with a promise of paying for it in the future, when in fact they don’t know what the future holds.

“The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty”(Proverbs 21:5). Nowhere is this seen more often than in the purchase of homes and automobiles, whose surety acquisitions have been the driving force behind the rise of these industries. They require an ever-expanding source of credit, and generally the borrower must pledge to pay, regardless of future negative situations or circumstances.

Cosigning

“He who is guarantor for a stranger will surely suffer for it, but he who hates being a guarantor is secure” (Proverbs 11:15). Because cosigning is by far the most known form of surety, logic would assume that Christians would not pledge as guarantor for the debt of another. Unfortunately, that is not the case. Why?

In most cases, Christians cosign either because of ignorance of what God’s Word says about surety or because they feel guilty about disappointing fellow believers. Although they may not have the financial resources to give the believers the money they need, they can cosign loans for them.

But regardless of the justification or the reason, pledging payment as a guarantor against a loan for another person is not an acceptable practice for God’s people. Practically speaking, when a person cosigns a note for someone else, the person cosigning is more often than not allowing the borrower to borrow beyond his or her limit to repay without negatively affecting the family’s financial welfare.

Conclusion

Surety is a principle—not a law. Although the violation of the principle does not carry punishment–like violating a law of God would–it’s violation does carry negative consequences. Even though surety is one of the easiest cautions to recognize in God’s Word, pastors seldom teach it. Consequently, today’s Christian society in America is suffering from broken promises, broken relationships between one-time friends (failure to pay means the cosigner has to pay—many times this results in broken relationships), suspicion, anger, debt, and marriage hardships. As much as any other biblical financial principle, pastors must warn against the dangers of surety.

Originally Posted October 5, 2012

The offerings should be counted soon after the collection is taken. This should be done in a secure place away from public view. At least two, but generally no more than four, ushers should count the collection and then recount a second and a third time.To maintain the confidentiality of the givers, it might be wise for the ushers who count the offerings to rotate on a regular schedule.

A look into God’s Word quickly reveals that material blessings were given because God loved His people, not because His people deserved those blessings. They were withdrawn from those who used them foolishly and transferred to more faithful stewards. “You ask and do not receive, because you ask with wrong motives, so that you may spend it on your pleasures” (James 4:3). To be a success from a biblical perspective, some prerequisites must be met.

1. Surrender–Every successful servant of the Lord who was entrusted with material and spiritual rewards first demonstrated an acceptance of God’s Lordship. The list extends throughout the Scripture: Abraham, Noah, Nehemiah, David, Paul, even Solomon–who later strayed because of material riches–first demonstrated a surrender to God’s authority.

2. Obedience–Those who are truly being blessed by God have demonstrated a willingness to use their material resources for God. An unwavering dedication to God’s way is the mark of a true steward. “Because of the proof given by this ministry they will glorify God for your obedience to your confession of the gospel of Christ, and for the liberality of your contribution to them and to all” (2 Corinthians 9:13).

3. Persistence–One attribute of a successful person is persistence in the face of problems. Too often today Christians who live by the “open door” doctrine give up whenever an obstacle is encountered. If God’s people give up easily when faced with difficulties, the world will consider us losers.

Nothing and nobody can shake a true believer from doing God’s will once it is understood. The evidence of this can be observed in the life of every servant who was ever used by God (see Esther 4:16, Nehemiah 6:11, Acts 21:13).

Investing is not unscriptural. As Christians learn to invest money according to God’s principles, they’ll find that God will increase their opportunity to help others. This is, in reality, the real purpose of investing: to gain financial security by increasing assets in order to serve God more fully. However, no single financial plan will fit every family.

Diversify

There’s an old maxim originally quoted in Don Quixote, written by Miguel de Cervantes, that says, “Don’t put all your eggs in one basket.” This certainly should apply to Christians’ investment strategies.

Solomon, in his wisdom, offers this excellent investment strategy. “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth” (Ecclesiastes 11:2). Solomon found the only path to peace of mind in investment planning was to diversify and surrender the outcome to God.

Based on this, investors need to know how multi-tiered investment plans work. A system that has been proven to be successful is the five-tier investment system. This system includes secure income investments, long-term investments, growth investments, speculative investments, and high-risk investments. To help clarify the investment types, we have assigned a scale from 0 to 10 to each investment that rates income (the amount of return), growth (appreciation potential), and risk (potential loss). Zero represents the least and 10 represents the highest.

Modify

Depending on age, income, and temperament, investors may want to omit one or more of the tiers. For instance, although older people may not want or need to get into the purely speculative tier—tier 5—younger people may not want to get into the purely conservative secure income tier—tier 1.

Tier 1: Secure income investments

Secure income investments generate cash with very little risk. There are primarily two types of secure income investments: government securities and bank securities.

* Government securities. Government securities generally have income of 5, growth of 0, and risk of 1. Government securities include Treasury bills (T-bills), Government National Mortgage Association bonds (Ginnie Mae), and savings bonds.

* Bank securities. Bank securities generally have income of 5, growth of 0, and risk of 3-4. Bank securities include savings accounts, certificates of deposit (CDs), and insured money funds. An advantage to investing in bank securities is that a relatively small amount of money can be invested. Disadvantages are that they offer little or no growth and the income is taxable as it is earned.

Tier 2: Long-term income investments

Long-term income investments provide stability of earnings for one-year deposits or longer. There are primarily six types of long-term income investments: municipal bonds, mortgages, corporate bonds, insurance annuities, stock dividends, and money funds.

* Municipal bonds. Municipal bonds generally have income of 5, growth of 0, and risk of 7-8. These are bonds issued by a local municipality. The primary selling feature is that most or all of the income from municipal bonds is exempt from federal income tax. The disadvantages are that they have low yields and they normally require a large initial investment.

* Mortgages. Mortgages generally have income of 8, growth of 0-5, and a risk of 3-4. A mortgage is a contract to lend someone money to buy a home or other real property. The lender (investor) holds the mortgage rights to the property until the loan is totally repaid. An advantage to this type of investment is that the risk is low because there is real property backing the loan. The disadvantages are that these investments are hard to find; the return is 100 percent taxable as ordinary income; there is little to no growth on the principal; and investors’ money is tied up for many years, perhaps as long as 30 years.

* Corporate bonds. Corporate bonds generally have income of 6-8, growth of 0-3, and a risk of 5-6. A corporate bond is a note issued by a corporation to finance its operation. The amount of return depends on the rating company that issues the bond and the income is totally taxable.

* Insurance annuities. Insurance annuities generally have income of 3-4, growth of 0, and a risk of 5-6. This investment requires a prescribed amount of money to be paid into the annuity, and then the issuing insurance company promises a monthly income until retirement age. The earnings usually are allowed to accumulate and are tax deferred until retirement.

* Stock dividends. Stock dividends generally have income of 4-5, growth of 0-10, and a risk of 6-7. Common stocks usually pay dividends based on earnings of the company. An advantage is that stocks can be purchased for relatively small amounts of money.

* Money funds. Money funds generally have income of 4-5, growth of 0, and a risk of 2-8. Money funds are the pooled funds of many people that are used to purchase short-term securities. These are not true savings accounts but are short-term mutual funds that pay interest.

Tier 3: Growth investments

Growth investments are selected primarily for long-term application. There are primarily three types of growth investments: undeveloped land, housing, and mutual funds.

* Undeveloped land. Undeveloped land generally has an income of 0-2, growth of 6-7, and a risk of 3-4. An investment in undeveloped land is considered very conservative, although there is a risk if the purchase is leveraged.

* Housing. Housing generally has income of 5-7, growth of 0-5, and a risk of 3-4. No investment during the last 25 years has been consistently better for the average investor than single-family rental housing. An advantage to investing in rental housing is that it can be done with a relatively small initial down payment. However, there are some disadvantages to investing in housing. (1) If investors don’t want to be landlords, they shouldn’t invest in housing (2) If investors aren’t able to maintain and manage the property without borrowing, the benefits dramatically decline. (3) It’s not always easy to get money out if it is needed.

* Mutual funds. Mutual funds generally have income of 6-8, growth of 4-5, and a risk of 4-5. Mutual funds are investment pools for many small investors. A group of professional advisors invests for the investors, usually in the stock or bond markets.

Tier 4: Speculative investments

Speculative investments are a mix between growth investments and speculation investments. There are two primary types of speculative investments: common stocks/mutual funds and precious metals.

* Common stocks. Common stocks/mutual funds generally have income of 2-8, growth of 0-7, and a risk of 7-8. The advantage of common stocks is that investors can invest with a relatively small amount of money with the potential for sizable growth. The primary liability of common stocks is that investors can suffer loss as easily as they can make a profit.

* Precious metals. Precious metals generally have income of 0, growth of 0-8, and a risk of 8-9. Precious metals can be purchased either for long-term growth or for pure speculation. In an economy as unstable as ours, a small percentage of investors’ assets invested in precious metals can help balance other assets more vulnerable to inflation.

Tier 5: High-risk investments

High-risk investments are usually selected for their volatility and maximum growth potential. These investments should play only a relatively small part (5 to 10 percent maximum) in investment plans. Most generate little or no income and are highly volatile. There are primarily six types of high-risk investments: precious metals, fossil fuels, commodities, collectibles, precious gems, and limited partnerships.

* Precious metals. Precious metals generally have income of 0, growth of 0-10, and a risk of 9-10. Not only can precious metals be used for long-term growth but also for short-term speculation. These are for the investors with strong hearts and plenty of money to lose.

* Fossil fuels. Fossil fuels generally have income of 0-8, growth of 0-10, and a risk of 10+. Because fossil fuels—especially oil, gasoline, and natural gas—are so interconnected with international politics, unless investors have money to invest that they can afford to lose, this is far too speculative for the average investor.

* Commodities. Commodities generally have income of 0, growth of 0-10, and a risk of 10+. Commodities speculation requires a relatively small dollar investment and can bring huge returns, primarily through the use of leverage. However, approximately 1 out of every 200 people who invests in commodities ever get any money back. That doesn’t mean profit; that means any money.

* Collectibles. Collectibles generally have income of 0, growth of 2-10, and a risk of 10+. One of the most important prerequisites to investing in collectibles is knowledge of the collectible. Unless investors have a high degree of knowledge in the collectible sector, the risk is inordinately high.

* Precious gems. Precious gems generally have income of 0-7, growth of 0, and a risk of 10+. Like collectibles, it’s very difficult to sell gems at a fair market price unless investors are knowledgeable and have their own market. For every one investor who has made money by investing in precious gems, 100 or more have lost all the money invested.

* Limited partnerships. Limited partnerships generally have income of 0-7, growth of 0, and a risk of 10+. Limited partnerships are formed to pool investors’ money to purchase assets—usually real properties. Since the investment is a limited partnership, it is no better than the property and the management. For most investors, the risk is too high and the return is too uncertain.

Conclusion

This five-tier investment system is by no means an exhaustive review. However, it can provide some guidance for getting started in an investment strategy after investors have their budgets under control and have developed surpluses. As investors define their investment goals through prayer, an investment model can be constructed that will be diversified and also will meet family goals. Because those goals will not necessarily be the same for every family, investment models may also differ.

For the most professional and accurate evaluation, we recommend that investors sit down with qualified investment advisors they can trust and feel comfortable with and design a plan that will meet their God-directed goals.

Originally posted 7/5/12.

by Mark Biller for Sound Mind Investing

For many people, the biggest obstacle to becoming a successful investor is the belief that investing is too difficult for them to handle. Because that misconception is so prevalent, SMI devotes a lot of coverage to the complexity-busting power of establishing a personal investing plan and sticking with it regardless of what’s happening in the markets.

With all the emphasis on planning, it’s easy to start thinking that investing success or failure depends solely on you. What a relief that isn’t the case! Surely God expects each of us to do the best we can faithfully, but ultimately, He has promised to provide for every need, whether or not we pick all the right mutual funds along the way (Matthew 6:25-33).

Dangers in Investing

Still, the pitfall of faulty perspective remains a danger for any investor who is focusing years into the future. Imbalance often results when an investing plan is being applied too rigidly, and these two areas seem especially vulnerable:

* Keeping a generous spirit. Despite the many reassurances given to us in Scripture that we come out ahead by being generous (Proverbs 11:24-25, Luke 6:38, 2 Corinthians 9:6), the idea is so counter-intuitive that it remains a battle for many people.

If meeting our saving and investing goals is a struggle to begin with, it sure seems strange to consider giving more money away. Yet that often seems to be how God works, perhaps as a gentle reminder that “my ways are higher than your ways” (Isaiah 55:9) and that “the wisdom of this world is foolishness in God’s sight” (1 Corinthians 3:19).

* Focusing on what really matters. As Scott Houser pointed out in an article about family vacations, sometimes it does make sense to bust the budget temporarily or borrow from the emergency fund. Naturally it would be even better to incorporate these relationship-building activities into the budget, but the point remains valid—accomplishing financial goals isn’t worth it if you look back after their completion and have deep regrets.

Although the ad is blatantly manipulative, I feel it right in the heart every time the radio implores me with a little girl voice to “Take me fishing, because my wedding day will be sooner than you think.” Ouch. I don’t fish, but I get the point. My retirement will probably still be okay even if our family spends some money building loving memories.

Balance is Key

Like most things in life, your investing plan requires balance to be effective. If it’s too loose, you’ll never hit your goals. But if it’s too tight, you can miss the prompting of the Holy Spirit, or sacrifice the things in life that ultimately prove most important. If you’re like me and lean to the “too tight” side with your plan, consider this true story.

Years ago, my parents felt led by God to give away the small sum they were planning to use as investment capital to start college funds for their three young children. While they didn’t know where the money for college would come from if they did, they were obedient and gave it cheerfully.

The years went by, and right up through the time that the youngest went away to school, it was never clear where the money would come from. Now and then events would allow them to save a little, and like many families, they took out a few small loans to make it work.

As the youngest prepared to graduate, Dad totaled all the items that had come up to help pay for college costs: taking a voluntary layoff and finding another good job quickly, scholarships, and so on. The final tally confirmed God’s faithfulness.

The total amount of unexpected college “help” was almost exactly one hundred times the original sum given away over 20 years before. Despite the change in plans that God orchestrated, everything worked out. God is faithful.

God Provides

Having an investment plan is essential to meeting long-term financial goals. But we need to allow some flexibility within that investment plan. Sometimes God helps us reach our destinations using a different path than we’d naturally choose. That may be because He’s not as interested in the destinations themselves as the journeys we take to get there.

If you trust God and try to follow His lead, there’s no need to worry—He will provide.

© Sound Mind Investing

Published since 1990, Sound Mind Investing is America’s best-selling financial newsletter written from a biblical perspective.

Originally posted 6/16/2012.

It is common practice in today’s business world for employers to reimburse employees for business-related expenses: hotel rooms and meals while on a business trip or gasoline if the employee’s car is used for business purposes.

The Problem

As in personal finances, credit cards can wreak havoc with business expenses. Sometimes the employee uses his or her personal credit cards, turns in an expense report, and is reimbursed by the employer. The danger is in the temptation to use the reimbursed money to pay for other things, rather than paying off the credit card bills. Thus, the credit card bills continue to increase and more debt results.

The Solution

Of course, the solution is to resist the temptation to spend the reimbursed money on other things; but it’s not as easy as it sounds for some people. However, there are three helpful ways to simplify the problem.

1. Open a separate checking account for all business expenses. When the business expenses are reimbursed, that money goes into the business account and is used to pay the credit card companies.

2. If you can’t control the use of credit cards, destroy them. Use cash, debit cards, or even traveler’s checks as alternative methods of paying for business expenses.

3. Begin paying off any debt already owed, which may mean sacrificing for a while; but, the more you pay off, the less interest you will have to pay. Once you are free of debt, you can spend more freely on what you want.
Beware of the urge to report more expenses than you are due. Not only can this result in the termination of your job, it also is stealing and is a sinful act before God.

Get control of your debt instead of letting it control you, and you will live a much more rewarding life.

“Owe nothing to anyone except to love one another; for he who loves his neighbor has fulfilled the law” (Romans 13:8).

Originally posted 7/13/2012

A business is a tool to be used by God to demonstrate the truth of the Gospel. In James 1:22 we are told to be “doers” of the Word. A business is the perfect environment for living Christ’s truth.

One of the best ways to determine whether a business is being used to serve God is to look at the policies governing its day-to-day actions. If Christian owners or managers are truly committed to Jesus Christ and to serving His purposes, the business will be run according to His minimum principles and precepts.

That means that Christian owners and managers need first to understand God’s principles and precepts. “The devious are an abomination to the Lord; but He is intimate with the upright” (Proverbs 3:32). In addition, the right decisions will yield something even greater—God’s wisdom and peace.

Purpose of a business

If a Christian business is to be used to serve God, it has but one overriding purpose: to glorify Him. Each decision—hiring, firing, paying, promoting, and so on—must be made in harmony with God’s written Word, under the day-by-day direction of His Holy Spirit. No one function is more or less important, and each must be done with excellence.

Basic business minimums

Whenever most people think about the basic minimums of Christianity, they generally think of the Ten Commandments. Indeed, these are the minimums that God said would separate His people from those around them.

In the business environment, the same commandments obviously apply, but there are some other minimums that set apart God’s followers from others in the business world.

These are not lofty, obscure goals for business owners and mangers to fantasize about; rather they are indicators of whether they are serious about dedicating their businesses to the Lord. These minimums are: keep out of unnecessary debt, evangelize, disciple others, fund God’s work, provide for needs, be accountable, provide a quality product, honor creditors, treat people fairly, and generate a profit.

Keep out of unnecessary debt. “The wicked borrows and does not pay back” (Psalm 37:21). “The rich rules over the poor, and the borrower becomes the lender’s slave” (Proverbs 22:7). Although it is sometimes necessary to accrue debt, especially when starting new businesses, borrowing to keep businesses going, to fund operating expenses, or to purchase product should be avoided.

Evangelize. There is no tool more effective for evangelism than businesses dedicated to the Lord. Not only can employees be won by the example of dedicated owners or managers but, similarly, so can suppliers, creditors, and customers. The key is the walk, not the talk.

Disciple others. Evangelism is sharing Christ’s message of salvation with the lost. Discipleship is training Christians to grow stronger in their faith. In businesses, that effort should be directed by the owners or managers to those immediately under their authority.

It is they who will then be able to disciple the others under their authority. “The things which you have heard from me in the presence of many witnesses, entrust these to faithful men who will be able to teach others also” (2 Timothy 2:2).

Fund God’s work. Businesses are the best tools for funding God’s work ever created. Properly run businesses can generate excess capital to meet needs, share the Gospel, and still continue day-to-day operations. “Give, and it shall be given unto you. They will pour into your lap a good measure—pressed down, shaken together, and running over. For by your standard of measure it will be measured to you in return” (Luke 6:38).

Provide for needs. A business must provide for the needs of the employees, creditors, customers, and owners. That is done by paying salaries, paying for supplies and equipment in a timely fashion, and providing a quality product at a fair price.

If Christian business owners accept meeting needs as a normal part of God’s plan, businesses will play an effective role in evangelism and discipleship.

Be accountable. Perhaps nothing in our society is more needed for those in positions of authority than accountability. Too often those with authority are able and willing to surround themselves with people who support their decisions without question. However, without a system of checks and balances, anyone will eventually drift off course.

All businesspeople need some other Christian or a group of impartial Christians to whom they are accountable and with whom they can discuss major decisions or communicate personal problems or difficulties. “Without consultation, plans are frustrated, but with many counselors they succeed” (Proverbs 15:22).

Provide a quality product at a fair price. Value can be defined as the effective return on a purchase. Low initial cost does not necessarily represent value.

However, when Christian businesses accept the standard for services and products that the Bible prescribes, the end result will be the best product at the best possible price.

Honor creditors. Business creditors include those who have loaned businesses merchandise as well as those who have loaned money. Too often in our modern business environment, suppliers are treated like a no-interest source of operating capital. When business is slow, it is considered normal to delay paying suppliers to offset the reduced cash flow.

If the situation is beyond owners’ or managers’ control, that’s one thing. However, if businesses are simply choosing a cheaper way to operate, they are violating one of God’s minimum principles. Christian owners and managers who continue to order materials and other supplies when there are already past due bills are deceitful. “Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, ‘Go, and come back, and tomorrow I will give it,’ when you have it with you” (Proverbs 3:27-28).

Treat people fairly, especially employees and customers. Fairness is both a responsibility and an opportunity. Employers who practice fairness are able to share Christ with their employees because they “practice what they preach.”

The first step in establishing the principle of fairness is to recognize that all people are important, regardless of their vocational position. “But if you show partiality, you are committing sin and are convicted by the law as transgressors” (James 2:9). If Christian owners and managers truly believe that their responsibility is to be a faithful example and witness for the Lord, the principle of fairness will relate not only to employees but also to creditors and customers.

Creditors will be more inclined to listen to owners or managers if they get paid on time and are treated fairly. Customers will be more inclined to listen if businesses give them a good product at a fair price and stand behind their word.

Generate a profit. Any business must be able to make a profit if it is to continue operations. Although God’s Word says that it is His will for us to prosper (3 John 2), that does not mean that owners and managers should sit on their hands, waiting for Him to bring profit to their businesses.

They are to work hard and be active participants in God’s plan for their businesses rather than observers. “The soul of the sluggard craves and gets nothing, but the soul of the diligent is made fat” (Proverbs 13:4).

Conclusion

Obviously, there is no such thing as a “Christian business.” A business is a legal entity and has no spirit or soul. It does, however, reflect the values of the principal owners or managers. It is the reflection of these values that determines whether a business is labeled Christian or non-Christian.

Committed Christians need to give their businesses to God, live by His basic minimums for operating businesses, and accept the fact that they are merely managers of His businesses. This means that God becomes the source of everything for their businesses. “My God will supply all your needs according to His riches in glory in Christ Jesus” (Philippians 4:19). “I walk in the way of righteousness, in the midst of the paths of justice, to endow those who love me with wealth, that I may fill treasuries” (Proverbs 8:20-21).

Originally posted 6/9/2012.

How much did the typical adult spend on his or her summer vacation last year? $400? $800? The average price tag was actually closer to $1,200. Imagine, then, how much money a family of four spent!

“Summer vacations can be surprisingly expensive,” Suzanne Boas, former president of Clearpoint Credit Counseling Solutions, said. “Families spend considerable sums of money on travel, accommodations, dining, entertainment and souvenirs.”

Summer vacationers can avoid post-vacation “sticker shock” by estimating their expenses ahead of time and budgeting accordingly. “Don’t wait until the credit card bills start rolling in to find out how much your vacation cost,” Boas said.

If you are in charge of summer vacation planning, Clearpoint offers the following tips to help you enjoy your vacation without breaking your bank.

* Make a vacation budget. The first step in vacation planning is to determine how much you have to spend on a vacation and how much you can realistically save before the trip. This is your vacation budget, or the amount of money you have for travel, lodging and amusement.

* Involve family members in decision-making. Now that you know how much you can afford to spend, decide on the best way to use it. Ask family members where they want to go and what they want to do when they arrive. Discuss compromises such as spending less on travel and more on sightseeing. Come up with a vacation plan everyone can enjoy.

* Do your vacation homework. Use travel Web sites like www.travelocity.com and www.priceline.com to get low rates on airline tickets, hotel rooms and car rentals. Ask travel agents for information on special packages and seasonal discounts. Read the latest travel guides at bookstores and libraries. Get information from friends and relatives who may have been to the same destination. Watch out for coupon books sometimes issued by visitor and tourism associations.

* Create a travel itinerary. Plan your activities before you arrive at your travel destination. Spontaneous stops can be the death of a vacation budget.

* Make a credit plan. Credit cards can come in handy on the road. They’re safer than cash because they can be replaced if lost. That’s the good news. The bad news is that it is easy to overspend with credit cards. If you are going to use credit cards, be sure to record your charges in a ledger and limit your charges to budgeted expenses. When you get home, pay your charges in full.

* Consider professional advice. If you are having difficulty raising the money necessary for a summer vacation or are still paying for last year’s trip, you may have budgeting and money management issues. The certified counselors at Clearpoint would be happy to analyze your situation and make recommendations. Clearpoint is a nonprofit, community service organization that provides confidential counseling, guidance, debt management and education programs to financially troubled consumers. Clearpoint is a member of the National Foundation for Credit Counseling. To schedule a confidential appointment, call 1-800-750-2227.

About Clearpoint

Clearpoint is a nonprofit, community service agency dedicated to empowering people to achieve a lifetime of economic freedom. Clearpoint provides free, confidential budget counseling, community and personal money management education, debt management programs, and comprehensive housing counseling. Contact Clearpoint by phone at 1-800-750-2227, or visit the Web site.

Originally posted 6/1/12.

The term bankruptcy comes from two Latin words and literally means “broken bench.” Under Roman law, creditors divided up the assets of a delinquent debtor, then broke the debtor’s workbench as punishment and a warning to other indebted tradesmen.

Today’s laws and changes in consumer attitude toward bankruptcy have fostered a climate in which people regard bankruptcy as a more plausible remedy for financial problems than they once did. And statistics that show marked increases in the number of personal bankruptcies seem to support this.

Biblical principles regarding bankruptcy:

* A debtor makes a commitment to pay back whatever he or she has borrowed, regardless of circumstances or how long it takes. “The wicked borrows and does not pay back, but the righteous is gracious and gives”(Psalm 37:21).

* God’s Word is clear; a debtor is obligated to repay what has been borrowed. “It is better that you should not vow than that you should vow and not pay” (Ecclesiastes 5:5).

* Bankruptcy should be a last alternative, not the first option. Debtors first need to try to work with creditors and be willing to make whatever sacrifices necessary to fulfill their promise to repay.

* Scripturally, bankruptcy does not negate an agreement to repay money you have borrowed. This doesn’t mean that a debtor in a hopeless situation cannot file bankruptcy. However, other options should be tried first, such as selling major assets, liquidating retirement funds, taking on additional jobs, and working with a credit counseling service.

* If all options have been exhausted and there is still a need to file bankruptcy, a debtor must commit to two things before filing.

1. A debtor must be willing to accept the absolute requirement to live on a conservative budget and pay the debts back. In some cases, this may take an entire lifetime.

2. The debtor’s motive must be honorable. If bankruptcy action is taken to protect the legitimate rights of the creditors, the action is biblically acceptable. But if the motive is to protect the assets of the debtor, without due consideration of the creditors, the action is unscriptural. “Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, ‘Go, and come back, and tomorrow I will give it,’ when you have it with you” (Proverbs 3:27-28).

God’s Word makes it clear that a vow (promise) of any kind is not to be taken lightly. Once you have given your word, it becomes a binding contract, so carefully consider the consequences before you agree to terms.

In today’s world this concept is rarely taught and seldom applied. A vow to pay a creditor is usually seen as something made under one set of circumstances and broken under another. However, God’s Word says that debtors are to be held accountable.

Our legal system may discharge debt through bankruptcy, but God’s people should repay their debts in full, even after a bankruptcy. This can be a powerful witness to a world that is cynical about Christianity making any practical difference in a person’s life. Believers are held to a higher standard than merely what is legal.

By Chuck Bentley

Just a few years ago, I sat in the University of Georgia football stadium as my son walked across the on-field stage to receive his college degree. As the ceremony ended with the traditional toss of the graduation caps into the air, my wife and I were also celebrating the fact that he was beginning his new life without any student loan debt.

But as head of an organization that helps people get out of debt and develop financial skills for life-long success, I could not help but wonder how many of those students were launching their careers anchored to debt. It turns out, quite a few of them were.

An estimated two-thirds of college students graduating in 2010 had student debt, reported The Student Debt Project in late 2011. And what they owe is increasing each year.

The U.S. Department of Education’s National Center for Education Statistics released figures in October, 2011 indicating that all college loan borrowing, including private loans, federal loans, and Parent PLUS loans, increased from 34 percent to 39 percent between 2003–04 and 2007–08, and that Federal Stafford Loan borrowing increased from 32 percent to 35 percent during this period. About that same time, the Federal Reserve Bank of New York indicated that student debt had surpassed not only total credit card balances, but also total car loan balances.

It gets worse.

The graduating class of 2010 left college campuses burdened by an average of more than $25,000 in debt, reported The Student Debt Project. That means more than 37,000,000 college alumni are trying to pay off almost $1 trillion dollars of debt in a very tight job market.

Ironically, the willingness to borrow becomes an incentive for schools to disregard cost-cutting measures. While the economy has sputtered along with 1 to 3 percent growth, over the last three years the cost of education at a four-year public college has gone up 25 percent.

What’s taking place is an emotional blackmail of sorts, in which colleges raise their prices far out of line with market events, holding the hope of the American dream over the heads of increasingly desperate teenagers and their parents.

I recently received an e-mail solicitation from an ambitious high school senior asking for donations to sponsor her to the elite private school of her dreams. She was accepted for her academic and leadership abilities but found that she would need $165,000 to get through the four years ahead before she could toss her cap into the air. These numbers look more like a mortgage to me.

Most disturbing is that the government recently has proposed a number of policy changes that will continue to fuel the bubble. The Obama administration has advocated moving more and more of the underwriting for these debts to the public sector (i.e., the taxpayer), modifying the terms for repayment and easing the time before the loans can be forgiven and seeking to artificially curb interest rates on the loans. All of these will be helpful to the current borrowers but sends clear signals that borrowing is an acceptable practice for earning a college degree.

It’s time to discuss the better solution: earning a college degree without debt. Not only is it possible, it is a prudent decision that needs to be championed by parents, students, and educators. A good place to begin is by evaluating a student’s gifts and skills to direct them to a field of study that can become a future career. Learning is priceless, but the costs today warrant avoiding the unnecessary expense of a midstream change in majors or simply attending for four years to “get a degree in something.”

For some, postponing college in favor of work experience while making a plan and carefully choosing a field of study would be time well spent.

But for those ready to begin a college career, here are our recommended “12 Steps” to consider:

1. Know yourself.

Rather than just take a prep-course for the ACT and SAT, do some self-evaluation to choose the appropriate course of study. Crown has developed Career Direct, a personal assessment that can help a student turn his or her passion into a career.

2. Scholarships and grants

Treat high school as the place to work to earn the grades that will qualify students for scholarships and grants. It is the highest paying “job” for anyone age 14-18. For some, it could mean more than $100,000 of financial rewards.

3. AP Classes

Take as many AP classes as possible while still in high school. The college credits earned there save money later.

4. Dual enrollment classes

Take dual or joint enrollment classes while still in high school. These are taught either in your high school or on a college campus. They are graded and count toward your GPA, and you earn college credit as well as high school credit for the classes.

5. Apply for local scholarships

Put a teenager’s web browsing skills to good use looking for scholarships off the beaten path. Many big box stores like Wal-Mart and Target offer a large number of small general scholarships for local students, from $500 to $1,000. Every little bit helps.

6. Community college

Attend a community college for the first two years while living at home. This decision dramatically lowers the cost of a college education while still allowing the student to earn a diploma from the desired school.

7. Choose an affordable college

Choose an affordable institution for an undergraduate degree, and save money for a master’s degree at the school of your choice.

8. CLEP

“CLEP” out of some classes. The College Level Examination Program, or CLEP, allows you to test out of certain classes. Study guides are available to help you learn enough material to pass the test.

9. Participate in the U-Promise program.

10. Work part time

Work part time while in school, during breaks, and over the summer. A student should be able to work part time at least to provide spending money while in school. Studies prove that students who work perform better in their classes.

11. Consider the military.

By joining a military reserve unit, significant funds can be earned. As active duty military, students can earn GI Bill money for education.

12. Leverage your athletic ability.

Sports scholarships have long been a path to college for talented athletes. Turn that God-given talent into a degree than can last a lifetime.

In the end, choosing debt should be done with a calculator and a good understanding of the long -term implications. In general, for parent or students, only 5 percent of after-tax, spendable income should go to debt repayment. When student debt (or any consumer debt) devours more than 8 percent of available income, financial stress will dramatically increase and may turn the dream degree into a nightmare.

No student should come home from college ignorant of the high cost of debt as a drain on life for years to come. For parents and students considering their options, understanding debt—and avoiding it—should be part of College Prep 101.

Originally published May 21, 2012 on Fox News.