How can I avoid credit card traps and eliminate debt problems?

What tips do financial experts recommend for using credit cards wisely? What are some biblical guidelines for getting out of debt and finding financial stability?

Since God created us, He understands how we think and act. When it comes to money, God reveals in the Bible a simple but profound truth: "The rich rules over the poor, and the borrower is servant to the lender" (Proverbs 22:7The rich ruleth over the poor, and the borrower is servant to the lender.
See All...).

When we are in debt, we serve those we owe. In the case of our credit card masters, we serve them well. After all, what investor wouldn't like to receive a 25 percent return on his investment?

The apostle Paul wrote, "Let no debt remain outstanding" (Romans 13:8Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.
See All..., New International Version). God expects Christians to fulfill their financial obligations. Not doing so often breaks God's commandments against lying and stealing (Exodus 20:15Thou shalt not steal.
See All...; Deuteronomy 5:19Neither shalt thou steal.
See All...; Leviticus 19:11Ye shall not steal, neither deal falsely, neither lie one to another.
See All...).

The way to financial freedom is through repaying debt, then avoiding debt whenever possible. Though it may make more sense to finance essential items of long-term value such as homes, cars and education, credit card debt is something most people can avoid.

How to pay off credit card debt

If you find yourself making interest payments every month on your credit cards and want to eliminate that kind of debt, try these steps:

1. Total your monthly expenses and subtract them from your income. This is your disposable income after expenses, the amount you have each month to use as you determine.

2. The next step is to stop charging items on your credit cards. Pay cash for items you must buy.

3. Then analyze your credit card debt. Determine which credit cards are charging you the highest rate of interest. You may be able to transfer balances from cards with higher rates to those offering lower rates.

4. Next, rank the cards in order of the interest rate charged, and use your disposable income to completely pay off the card with the highest rate. Once that card is paid off, close the account and destroy the card. Then focus your attention on the next card, and continue doing the same until all of the debt on your cards has been completely paid.

5. Once your credit card debt is gone, you're much better off with only a few cards—not the dozen or more carried by so many people.

How to use a credit card

After you've paid off all your credit card debt, it's time to consider how such cards can be properly used. How do credit card-savvy consumers use their cards?

The most important step in responsible credit card use is to completely pay off the bill every month. Think of the credit card as using cash that is reserved each month for the items charged. This way no interest accrues, and credit cards become legitimate and helpful financial tools. They become our servants instead of the other way around.

Most people don't realize that God has much to say about how we use our money. As our Creator, He is the One who gives us the power to earn money and enjoy what it can buy (Ecclesiastes 5:18-19 [18] Behold that which I have seen: it is good and comely for one to eat and to drink, and to enjoy the good of all his labour that he taketh under the sun all the days of his life, which God giveth him: for it is his portion.
[19] Every man also to whom God hath given riches and wealth, and hath given him power to eat thereof, and to take his portion, and to rejoice in his labour; this is the gift of God.

See All...). In a parable of the coming Kingdom of God, Jesus Christ described Himself as giving His servants money (talents) to manage. How His servants managed those funds determined their reward in the Kingdom (Matthew 25:14-30 [14] For the kingdom of heaven is as a man travelling into a far country, who called his own servants, and delivered unto them his goods.
[15] And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey.
[16] Then he that had received the five talents went and traded with the same, and made them other five talents.
[17] And likewise he that had received two, he also gained other two.
[18] But he that had received one went and digged in the earth, and hid his lord's money.
[19] After a long time the lord of those servants cometh, and reckoneth with them.
[20] And so he that had received five talents came and brought other five talents, saying, Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talents more.
[21] His lord said unto him, Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord.
[22] He also that had received two talents came and said, Lord, thou deliveredst unto me two talents: behold, I have gained two other talents beside them.
[23] His lord said unto him, Well done, good and faithful servant; thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord.
[24] Then he which had received the one talent came and said, Lord, I knew thee that thou art an hard man, reaping where thou hast not sown, and gathering where thou hast not strawed:
[25] And I was afraid, and went and hid thy talent in the earth: lo, there thou hast that is thine.
[26] His lord answered and said unto him, Thou wicked and slothful servant, thou knewest that I reap where I sowed not, and gather where I have not strawed:
[27] Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury.
[28] Take therefore the talent from him, and give it unto him which hath ten talents.
[29] For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath.
[30] And cast ye the unprofitable servant into outer darkness: there shall be weeping and gnashing of teeth.

See All...).

What's the lesson of this parable? The way we manage our money reveals to God much about our character.