Bankruptcy or debt settlements often seem like the only options when financial pressures begin to build. The problem with choosing bankruptcy or debt settlements is that the decision has consequences that will effect the next seven to ten years of your life. Most people know that by choosing bankruptcy or debt settlements, they may have difficulty financing a home, car or any other large purchase. If you think you are not in the position to purchase these things anyway, which makes bankruptcy or debt settlement an attractive choice, consider this: many people have found it difficult to rent an apartment or secure a school loan because of a bankruptcy or debt settlement on their credit report.

While bankruptcy or debt settlement seems like a quick fix to a difficult problem, the reality is that bankruptcy or debt settlement is often only a continuation of a deeper problem. Before pursuing bankruptcy or debt settlements, answer a few questions honestly: why am I this position? Is this financial pressure the result of choices I have made? Can I get out from under this pressure if I begin to make different choices? Once you answer these questions, you can begin to see if bankruptcy or debt settlements would be a wise choice for you. Before you choose bankruptcy or debt settlements, consider contacting a Christian organization that can teach you some basic biblical principles of money management. These Christian organizations will be able to help you determine if a purchase is a need or a want, and once the distinction has been made, you will be better equipped to decide if the purchase is warranted.

Bankruptcy or debt settlement should be contemplated not only from a financial perspective, but also from a moral perspective. Companies lend money to borrowers in good faith. If you have agreed to pay back that money (and your signature testifies that you have) you have a moral obligation to do everything in your power to pay back that money. This may mean living on a strict budget for the next few years instead of opting for the apparently quicker solution of bankruptcy or debt settlement. The other issue people may need to resolve before choosing the bankruptcy or debt settlements is whether the debt they have acquired is a result of greed. If so, bankruptcy or debt settlement does nothing to alleviate the bigger problem, which increases the likelihood of repeating the debt cycle.

The Bible is clear in its warning against greed, and upon reflection people may realize the root issue of their debt is less about having insufficient income and more about having a covetous heart. The sin of greed will bring stress and discontentment not only into your life but also into the life of your family, so reject the temptation to make purchases before you can afford them. He that is greedy of gain troubleth his own house. (Proverbs 15:27)