The Debt Trap
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Teaching Notes
Unstuck
Part 2: The Debt Trap
Del Mar Giving Tree Update:
- Over $23,500 given
- 48 Families were served
- Served 5 Families with significant areas of essential needs
- Thank you to Diane Hahn & Niccole Carner for your leadership.
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How do you get unstuck in the significant areas of your life?
How do you get unstuck financially?
Can you really experience financial freedom in the Silicon Valley?
Personal finances are more _______________ than _______________.
THE DEBT TRAP
A Nation in Debt:
- Total credit card debt: $1.21 trillion [Avg. per Household: $20,221]
- 49% of Americans carry debt month to month on at least one card
- Interest rates are at 20.74%, making minimum payments on an average credit card balance [$6,088] would take more than 17 years to pay off the debt & cost more than $9,072 in interest.
- Total student loan debt: $1.6 trillion [Avg. Student Loans: $55,347]
- Total auto loan debt: $1.6 trillion [Avg. per Household: $35,167]
“Consumers have been propping up the U.S. economy when no one else could—now the debts are being called and they can’t pay their bills.”
- Fortune Magazine
The rich rule over the poor, and the borrower is slave to the lender.
Proverbs 22:7
Why do smart people get stuck in the debt trap?
1. STINKIN’ _______________’
Blessed are those who find wisdom, those who gain understanding, for she is more profitable than silver and yields better returns than gold. She is more precious than rubies; nothing you desire can compare with her.
Proverbs 3:13-15
Wisdom is more valuable than _______________.
Application: Be an avid _______________ and get into an Awakening _______________ _______________.
Walk with the wise and become wise, for a companion of fools suffers harm.
Proverbs 13:20
2. UNEXPECTED _______________
Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever, and a crown is not secure for all generations.
Proverbs 22:23-24
Application: Before you _______________ on your wants, _______________ for a rainy day.
- Save $1,000 as quickly as you can.
- Build a 3-month emergency fund.
3. IMPOSTERS _______________
One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.
Proverbs 13:7
Whoever loves pleasure will become poor; whoever loves wine and olive oil will never be rich.
Proverbs 21:17
Is the problem the high cost of living or the cost of _______________ _______________?
Application: Stop _______________ things you cannot _______________.
4. DEATH BY _______________
Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
Proverbs 13:11
We tend to overvalue the _______________ and undervalue the _______________.
Application: Sweat the _______________ _______________.
APPLICATION:
- Memorize Proverbs 22:7: Write it on the 3x5 card and review it daily.
The rich rule over the poor, and the borrower is slave to the lender.
Proverbs 22:7
- Make getting out of _______________ _______________ your #1 priority.
- Cut _____-_______________ spending
- Use the Debt _______________ technique.