Can credit cards help us in a crisis?
In a previous post, we discussed the negatives of debt and made the inference that Christians should avoid debt like the plague. However, debt isn’t always such a bad thing. When in a financial quagmire, you might need to use credit to help you deal with the short-term effects of the crisis. But from the very onset, borrowing should be seen as a temporary fix aimed at getting you out of a rut.
In the book of 2nd Kings chapter 4, a widow who was in financial distress came to seek help from prophet Elisha. The widow was being harassed by her husband’s creditors and they were now threatening to take her sons as usury for the debt owed. The prophet asked the woman what she had left and she confessed that she was so impoverished that all she had was a small flask of oil. On hearing that, the prophet said;
Elisha said, “Go around and ask all your neighbors for empty jars. Don’t ask for just a few.2 kings 4:3
To cut the long story short, the woman borrowed jars from all her neighbors, and then God performed a miracle by multiplying her little oil to fill the jars she had.
Then she came and told the man of God. And he said, Go, sell the oil, and pay thy debt, and live thou and thy children of the rest. 2 Kings 4:7
Notice what the prophet told her to do? she was to use the proceed to pay off her debt and then live off what remained. So, if you are in a financial crisis, you may have to use a credit card but remember, the goal is not to get into a comfort zone but rather to pay off the credit as soon as normalcy is restored. Here are three practical ways credit cards can help you in times of crisis
Save cash
Cash is very important in times of crisis. There are lots of bills that cannot be paid with credit cards and it helps to have a good reserve of cash. And the best way of doing that is by using credit cards to pay for expenses that allow for credit cards. But even as you think of using credit cards for purposes of saving your cash reserves, don’t overdo it. Try as much as possible to pay off your monthly statement on time or you will be slapped with hefty interests.
COVID-19 has affected all of us economically – whether directly or indirectly. If you haven’t lost your job, there is a good chance you have gotten a pay cut. And in moments like these, credit cards might help you to still pay your bills on time. By using credit cards, you can spread out the negative effects of the crisis which will help to soften the blow. However, don’t just jump at the first credit card that comes to mind. Do some research to get one that gives you the best value. For instance, some credit cards have a 0% APR on purchases for the first year.
Managing debt
It is hard enough to deal with a ballooning debt but throwing a full-blown crisis like the COVID-19 situation makes it even harder. As money gets tighter, paying off credit becomes costlier by the day to the point that paying the interests on the debt may be too much to be sustainable. In such a scenario, credit cards might help to reduce the debt. You can apply for a 0% APR balance transfer and this might just give you an additional year to pay off the debt at no interest.
As we have already established from the scriptures, debt is never the best way to go and God would that you become a lender rather than a borrower. God designed and desires that his children would prosper and enjoy an abundance of blessings. When he called Abraham to a walk of faith, he promised to not only bless him and make his name great but also to make him a blessing and to use him as a channel to convey blessings to the nations of the World.
That said, sometimes life just happens and we find ourselves between a rock and a hard place. Maybe you suddenly lose a job or a spouse, or maybe you become a victim of a catastrophe. When that happens, debt might be a good resource and you don’t need to feel guilty about it. Getting into debt to get out of trouble is totally fine. But even as you do that, remember the ultimate goal of getting debt in times of crisis is to make your life a little easier and to allow you to deal with the debt as soon as possible. And as soon as you are out of debt, remember the words of Jesus in the gospel of John,
Go and sin no more lest a worse thing happen to you. John 5:14