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    BY

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    C.V. RADEBE

    All rights are reserved by the Author

    C.V. Radebe

    No portion of this manual may be reproduced or utilized in any form or by

    any means, electronic or mechanical which includes PHOTOCOPYING,

    recording or by any information storage system, without written permission

    from the Author.

    This book is written by C.V. RADEBE

    P.O. Box 16187, Leondale,

    1401

    Copyright: Breakthrough Ministries 2000

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    FOREWORD:

    Acknowledgement:

    I would like to dedicate this book to my beloved wife, Busisiwe, who is always

    available as a friend, partner and number one supporter of our God -

    intended vision. My precious God given children: Bonginkosi, Thembinkosi and

    Musawenkosi, who are so understanding and supportive to whatever I do. My

    dear mother Sophia who always prays for me. Finally,to the members of the

    Breakthrough Ministries who are such a loving and caring family of God. Last

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    but not least my only sister Busi and my brother Sipho who are a great

    inspiration in my life.

    My heartfelt gratitude also goes to Zoe Mtwa, Mandla Mwelase and

    Sibongile Mkhombo who did the proof reading of this script. To Bulelwa

    Mditshwa - Mussane and Dudu Tshabalala who did the typing, I say thank you

    very much. God bless you!

    To God be the Glory! Great things He has done!!

    By the Author

    C.V. Radebe

    TABLE OF CONTENTS

    Chapters Content Pages

    Introduction

    Chapter one: GODS PLAN FOR YOUR FINANCES. 1

    Chapter two: PROBLEMS WITH OUR FINANCES. 5

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    Chapter three: HOW WE LAND IN DEBT. 8

    Chapter four: HOW DEBTS AFFECT US. 19

    Chapter five: HOW TO GET OUT OF DEBT. 25

    Chapter six: PRINCIPLES FOR FINANCIAL PROSPERITY 37

    Chapter seven: POSSES THE LAND 42

    Chapter eight: CONCLUSION 51

    Glossary of Terms

    Bibliography

    (i)

    INTRODUCTION

    Lets enjoy life that is debt free, only if we know how!

    In the past few years, my family and I went through lots of financial

    problems which emanated from accumulated debt and lack of sound financial

    management principles. After a long period of observation and research, I

    finally discovered that God has clearly outlined principles of sound financial

    management, I began to study these in the word of God, and began to

    implement them in my life. My financial management principles have

    completely changed now and it is benefitting me, my wife and my entire

    family. I wanted to live a debt free life but did not know how to, until I

    found the answer in Gods word. I believe that many people want to live a life

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    that is debt free but the problem is they dont know how that can be

    achieved. You cannot fight an enemy until you know him.

    A great deal has been said and written recently by people about how we

    should handle our finances. Through this book I want Christians to

    understand what the correct attitude should be towards God given financialmanagement principles versus debt which has now become a common and

    acceptable lifestyle.

    I believe that the body of Christ must not allow itself to become slaves of

    debtors, banks and micro-landing institutions, but must develop and maintain

    a proper and positive attitude towards God given financial principles.

    Our attitude has been geared towards achieving everything that we have

    through debt. People landed in debt because their attitude towards

    prosperity was wrong. I believe that you can never be successful in life as

    long as you still have a borrowing attitude. Borrowing must be controlled andit must be the last resort. The correct attitude is that we should save

    enough and learn to buy cash rather than have all through debt and

    borrowing. This requires true maturity and discipline and has Gods blessings

    in it. I would like you to understand that I am specifically referring to those

    in the church of Jesus Christ, and I am using Biblical perspectives to

    support my arguments. I want to see the attitudes of members changing

    from the world system of doing things to that of God given financial

    principles.

    (ii)

    Freed to posses is a book designed to equip the believers with strategies of

    overcoming the spirit of debt through applying Godly principles of

    prosperity. It is also geared towards correcting the perception that man

    cannot survive without borrowing. Above all, those who choose the option of

    debt are cautioned about using debt as the sole means of achieving and are

    provided with alternatives of strong financial discipline in the management

    of loans and debts.

    The book challenges the youth to save now for a bright future tomorrow,encouraging them to pave greener pastures for their children and inspires

    them to accumulate wealth and riches through the promotion of the

    enterprenureship spirit and God given talent.

    Whilst black people in the South Africa are enjoying the taste of

    democracy, the book warns the nation about the economic struggle still to

    come about, caused by inequitable distribution of the land, mineral and

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    mining resources.

    This book answers to questions like: is debt the only way to acquire things?

    It also offers a wide variety of alternative lifestyles to enjoy a debt free

    life through self-empowerment. A series of biblical principles are laid as

    good foundational work for sound economic principles of prosperity.However, the book does not speak against borrowing but warns against the

    spirit of borrowing for living, whereby people are led unawares to the trap

    of debt. The book urges people to put debt under the microscope and tries

    to make them understand that borrowing leads to debt if adopted as a

    lifestyle and if it is not controlled.

    The book will also provide suggestions and solutions to those who are in

    financial problems because of borrowing and debt. It is also intended to

    challenge those who are going through a tough and rough time in their

    finances because of borrowing and debt, it tries to motivate them to startapplying biblical principles and discipline to their problems. No matter how

    deep the mess is, God is a God of second chances, bounce back like a tennis

    ball, study and apply these principles and you will get your financial

    Breakthrough!

    I pray that this book may change forever some of our attitudes about our

    finances. Allow the Holy Sprit to move with the conviction and reality of the

    truth.

    (iii)

    This book is also intended for those who obey the word of God and who are

    willing to be set free from the spirit of debt and poverty. The Author does

    not list money as the highest level of prosperity but believes that prosperity

    is both broader and bigger than money. Ownership of property as well as

    shareholding is another area of prosperity to be taken seriously.

    We shall also further explore the notion that ones full trust (faith) in God

    will enable you to know that God can meet your needs and the needs of those

    around you and not only the financial institutions and resources of thissecular world. We shall finally look at debt and its consequences to the

    Christian Community and also look at ways and means of getting out of debt

    that is fastly affecting the body of Christ and rendering it paralyzed and

    powerless. The book concludes by challenging especially members of

    disadvantaged communities to use whatever legal resources Given by God to

    enjoy life in its entirety and challenge whatever forces that want to keep

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    them poor because God has given them the right to posses the Land. True

    Freedom goes with possession and ownership. The question to be asked is

    ARE YOU FREE? If the answer is YES! Then what do you posses?

    1.

    CHAPTER 1

    1. GODS PLAN FOR YOUR FINANCES

    Do you have a plan to build up your finances?

    Many people want to build financial empires but they have neither the plan

    nor the resources. God has a dynamic plan for our finances and this plan is

    clearly outlined in Jer29: 11

    For I know the plans I have for you, declares the Lord, plans to prosper you

    and not harm you, plans to give you hope and a future.

    God has pleasure in seeing us prosper and not going into poverty. God is infavour of seeing believers prosper and that is why he has a clearly laid out

    plan for our finances. Believers need to know that God has already laid the

    foundation and we have to focus on the fact that Gods power and resources

    are sufficient enough to make us prosper in all areas of our life.

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    God wants to set us free from debt and He calls us to a debt free life

    If the son of man sets you free, you are free indeed. John 8:10

    Owe no man anything, but to love one another Romans 13:8

    The devil also has plan and it is clearly outlined in John 10:10

    The thief cometh not but for to steal, and to kill, and to destroy

    The borrower is servant to the lender. Prov 22:76

    This is the devils plan, to put you into bondage, gradually through borrowing

    and eventually the spirit of borrowing becomes your dependency and you

    loose your trust in God. A Christian who lives on borrowing simply says:

    God you cannot help!

    The devil is serious about his plan, he will ensure that he steals and destroys

    your financial heritage. This is one man who really means business. He will

    ensure that he steals and destroys your financial heritage. This is one man

    who has long been in this business. He will never give up until he has

    accomplished his mission. He makes sure that he does not leave you until you

    have lost everything that you have, starting with your faith in God.

    2.

    Christians need to protect themselves against the tricks of the devil. Jesus

    in John 10:10b says:

    I am come that they might have life, and that they might have it more

    abundantly.

    The devils plan is to enslave and bond you into debt, and then kill and

    destroy your financial heritage. The devil wants not only to torture us but

    also to bring curses and cast evil spells upon our lives.

    Gods plan on the other hand is to set us free from debt; rebuke the

    devourer (protect your property); and prosper (to be successful in all you do)us so that we live in abundance (have more than enough). God wants His

    children to enjoy life, swim in blessings and prosper in all they do so that

    they can glorify His name.

    Whose plan would you like to follow? Gods or the devil?

    I choose to obey God because financial prosperity is not for everybody, but

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    only for those who obey the law of God.

    I believe that prosperity is not only a financial matter, but we can have

    spiritual prosperity by receiving Jesus as Lord of our Lives. We can also

    experience social prosperity by enjoying a good and loving family

    relationship. Another important area of prosperity is that of the soul - here

    we are referring to the soul realm which incorporates the will, the intellect

    and the emotions, when we completely surrender to the Lord and allow Him

    to use us we shall overcome the destructive forces of the devil, we will think

    right and live right and do the right. When you are a Christian, you dont

    have to focus only on material wealth, but you can also enjoy true financial

    blessing benefits and prosperity by serving and obeying God.

    For us to understand and enjoy these blessings, let us take a closer look atGods plan:

    (i) Gods plan is to fill our treasuries. Not to empty them:

    And all these blessings shall come on you, overtake you, because you

    obey the voice of the Lord your God. Deut. 28:2

    3.

    (ii) Gods plan is that we must be in the lending business and not in the

    borrowing business:

    And the Lord will grant you plenty of goods, in the fruit of your body,

    in the increase of your livestock, and the produce of your ground, in the

    land of which the Lord swore to your fathers to give to you. The Lord

    will open to you His good treasure, the heavens to give the rain to your

    land in its season, and to bless all the work of your land. You shall lend

    to many nations, but you shall not borrow. Deut. 28:11 - 12

    (iii) Gods plan is that He gives us power to enjoy God given riches and

    wealth.I will give you the treasures of darkness and hidden riches of secret

    places. Isaiah 45:3

    The ability to work, to earn, and enjoy what you earn is a God given

    ability.

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    (iv) Gods plan is that we trust Him for wealth and prosperity because it

    comes from Him and not out of our own efforts:

    But thou shall remember the Lord thy God; for it is He that giveth

    thee power to get wealth. Deut.8: 18

    The blessing of the Lord maketh rich Prov 10:22

    This simply means that it is God that maketh rich, not only through your

    hard work, not our bosses, not our education, but true wealth is from

    the blessing of God. We have to trust God for our prosperity. We need

    Him to bless us for us to be rich.

    But seek ye first the Kingdom of God and His righteousness; and all

    these shall be added unto you. Matt 6:33

    (v) Gods plan is that we have provision enough to meet our needs and the

    needs of our children.

    A good man leaveth an inheritance to his childrens children.

    Prov 13:22

    4.

    Gods plan is that when we leave this world, we must leave wealth and

    blessings as well as good memories to our children. Our death must notimpoverish our families but it must uplift and benefit them financially.

    Behold I set before you this day a blessing and a curse; A blessing, if

    ye obey the commandments of the Lord your God, which I command this

    day:

    And a curse, if ye will not obey,,, Deut 11:26-28 .

    I believe that there is only one way to enjoy true and sustained financial

    prosperity and that is, by serving and obeying Gods financial plan for our

    prosperity.

    This book is going to further reveal Gods strategies against poverty and

    expose the spirit of borrowing which eventually leads to debt.

    We shall continue to focus on the fact that Gods power and resources are

    sufficient enough to make us prosper in all areas of our life and we do not

    have to rely on borrowing for a living. Gods plan has a vision of prospering us

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    and in His plan He has made provision for our success.

    The prosperity of all believers is in Gods plan, borrowing and debt is mans

    plan. Which plan do you choose? I choose to follow Gods plan because it has

    provision for me.

    5.

    CHAPTER 2

    PROBLEMS WITH OUR FINANCES

    Money has never made a man happy yet, nor will it. There is nothing in its

    nature to produce happiness. The more a man has, the more he wants.

    Instead of filling a vacuum it makes one. Benjamin Franklin.

    God delights more in seing us being prosperous than living in proverty. He is

    interested in us and it gives Him pleasure why? becauce we are His children.The biggest problem the church faces today is how to get out of debt and

    live a debt-free life. The worlds financial systems are in economic shambles

    and so are the majority of churches and families. Money does not make us

    happy yet, so says Franklin, and I agree. Money opens a vacuum, this is the

    vacuum of mismanagement which leads to debt.

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    The majority of families in South Africa are living in debt and are owing lots

    of moneys to banks, financial institutions and individuals. The problem is that

    debt is increasing every year, the money they owe is more than the money

    they earn. The cost of living has gone very high especially with the decline of

    the Rand and the forever increasing petrol cost. Inflation is costing theaverage South African a hard pinch into the pocket. The average worker

    cannot afford to meet the family needs and more and more people are in

    debt and they live on borrowing and cannot cope with their repayments.

    Another problem is that we as a nation have never trained our children on

    how to handle their finances. The word of God in Prov.22:7 says:

    The borrower is the servant of the lender.

    Many people are not aware of the fact that if they borrow money from an

    institution, the institution is going to charge them lots of interest and in

    some cases make them to pay off over a long period e.g. twenty years and

    you end up paying double the amount owed.

    Prov. 22:6 says: Train up a child in the way he should go: and when he is old,

    he will not depart from it.

    6.

    Families need to train up their childern that borrowing makes one a slave ofthe lender. Our families are training children to live on debt. This is

    poisoning our nation. Almost everything that some families own is purchased

    through hire purchase or debt. The house that people live in is owed over

    twenty years. The furniture that is in the house including the bed that

    people sleep on is purchased through credit. The people watch a TV that is

    bought on credit. They sit on sofas that are bought on credit. Children do

    homework on encylopaedias and computers that are purchased on credit. The

    parents drive the children to school on a car that is purchased on credit.

    They use petrol bought on credit (petrol card).

    Borrowing has become a lifestyle. Students borrow to complete their studies

    and they apply for student loans. Their parents sign guarantees to bond

    their children into starting life with debt. What are we teaching our

    children? That debt is the only way out? When the students finish their

    studies, they are encouraged to apply for credit cards and they are given

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    power to spend money they do not have. This mentality is damaging to our

    youth who live with a false impression that borrowing is the only way to

    achieve ones desired goals. Recently, more and more people are listed in the

    credit bereau because they can no longer afford to pay back and are now in

    debt. Debt is becoming a increasing concern in the Christian Community.Many people are loosing their valuable property, their posessions and even

    family life is threatened as more and more people go into debt. Christians

    have stopped tithing and are living under a financial curse. They have

    stopped giving and have been robbed of Gods blessings.

    The whole process starts with occassional borrowing. There is nothing wrong

    with occassional borrowing where there is a pressing need, if you borrow, pay

    back immediately. A person who has achieved through borrowing is caught up

    by a spirit of borrowing, such a person borrows without limit and does not

    care from whom. Borrowing becomes a lifestyle and he jumps from one home

    to another, one race group to another borrowing money. Because this is now

    a lifestyle, the individual borrows with an intention not to pay back. The

    conscience of the individual dies. An individual can borrow from city to city

    and if things get tough, they do not mind moving to another city to escape

    the anger of people who are demanding their money back.

    7.

    The spirit of borrowing gives birth to many like spirited babies like the

    spirit of lying, spirit of jealousy and eventually the devil takes over as thespirit of God leaves the individual.

    Finally a person who has been borrowing fails to pay back and lands in all

    sorts of trouble. His house, his furniture and marriage is under threat

    because the devil has been given a chance through an open door of

    borrowing. The people who are owed curse the borrower and the debtors

    institute legal action. The end product of borrowing is disastrous.

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    Borrowing is not part of our covenant with God. You cannot serve two

    masters; Matt 6:24 says: you must therefore make a choice between

    serving God by running your finances well and depending on Gods

    provision and sustainance or serving the lender by living a lifestyle of

    spending and borrowing.

    The problem with our finances is that we are overspending and are never

    content, we are in negative competition with other people, we are

    poorly paid, we are proud and cannot take correction. We have adicted

    ourselves to a complicated and sophisticated lifestyle rather than a

    realistic and simple lifestyle. It is either we are in the lenders or in

    the borrowers group, no one can be on the fence. It is important for

    one to make a wise choice. Why not choose to lend and be a rich and

    blessed man because you are serving God come out of debt and put

    your absolute trust and victory on Jehova Jireh, the Lord your

    provider.

    8.

    CHAPTER 3

    HOW WE LAND IN DEBT.

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    Once more debt starts by borrowing, but if borrowing becomes a lifestyle, it

    becomes a sinful practice and brings about remorse in the life of a Christian.

    It is not only the borrower that can be in debt but anyone who is not

    cautious enough can come face to face with debt at your doorstep. There

    are a number of causal factors that can lead us to debt.

    3.1 Social Causes

    Unhealthy social spending emanating from cultural value system, unwise

    spending habits, negative competition, lack of good role models have

    impoverished us and we need to look at these with both a critical and

    analytical eye.

    3.1.1 System of Lobola

    The original purpose of the system of Lobola was to hand over goods,

    cattle or money to the father or guardian of the bride in order tomaintain a relationship and also to ensure rights to any issue of the

    marriage. For a long time the system of lobola has been part and parcel

    of our lives. Recently, lobola has now shifted emphasis from that of

    marriage consideration to that of personal gain. Exorbitant amounts of

    up to R25 000 are charged on individuals. The average black male youth

    who wants to marry must be prepared to part with the average of

    + R10 000 lobola. In addition to that there are lots of rituals and

    hidden cots involved. Family members see it as a moment of benefit

    whereby all relatives get gifts through a ceremony called Umhlambiso.Thousands of rands are spent on expensive blankets, towels, mats etc.

    to buy friendship with family members. In addition to that, the wedding

    still has its own demands. A young man who wants to marry shudders at

    the fact that he has to set aside between R15 000 to R45 000. This

    discourages our youth when they think of a marriage ceremony. That is

    the reason why many of our youth do no longer marry but decide to live

    together in trial marriages. The inability to cope with the demands of

    lobola has contributed to immorality in our communities.

    9.

    The system of lobola impoverishes the youth who start life already

    having to pay back student loans. Couples plan flashy marriages where

    they hire limousines, change garments three times, feed thousands of

    guests and finally pay for their furniture in their new residence. Many

    young people cannot cope and therefore resort to borrowing as a

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    lifestyle. This system needs to be reviewed critically by the Christian

    community because it has put many young couples into debt and misery.

    3.1.2. Funeral Expenses.

    Our communities take funerals very serious. When a member of the

    family dies, we mourn for a full week before the funeral. During this

    waiting period, the struggling family has to provide tea and cakes to

    hundreds of mourners who come to pay condolence to the bereaved

    family. The funeral undertakers are in a booming business and they

    offer different executive types of funeral services where you are given

    an option to choose the types of funeral service you want e.g. normal,

    de-lux funeral or super de-lux. The service range from using a trailer to

    a 48-wheel hearse. Various types of standards are introduced to woe

    mourners to take up classic funeral schemes. Lots of after funeral

    services expenses take place e.g. washing of shovels, ten days; Khumula

    isizilo - Unveiling of tombstones. Funerals and related rituals as well as

    social practices have become more sophisticated and people need to

    realize that the more we simplify our funerals the better. The

    bereaved family needs to be helped and not to be drained financially.

    Many people found themselves in debt after they lost a family member

    or a friend.

    3.1.3. Party Spirit

    Africans are a party nation. For any achievement that we get, we wantto celebrate in style. Celebrations held commonly are in the form of :

    Thanksgiving parties, Graduation parties, house - wetting partys etc.

    This takes a lot of money because food, drinks and hiring of resources

    has become a very expensive venture. People hold parties out of

    competition, or because they follow the crowd or tradition but deep

    10.

    down they know that the money they are spending could have been

    better utilized if a smaller party was held for immediate family

    members. We seek to celebrate with crowds and eventually when all is

    over, the family overspends and family members are left with debt.

    Because of failure to differentiate between the needs and wants.

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    3.1.4 Sinful Living Patterns.

    Lack of self-control leads to practicing lustful desires of the flesh. Our

    communities are very permissive and receptive to promiscuity and

    extra-marital relationships. Men pride themselves of their manhood and

    earn more respect if they have many love affairs. The most unfortunatepart is that it is married men who are doing this. This sinful lifestyle is

    expensive because he has to steal from family money to please the

    lovers who are forever demanding and they end up loosing both their

    self-esteem and wealth. Their families end-up being the key sufferers

    due to their promiscuous lifestyle.

    3.1.5. School System.

    Many parents have taken their children to former Models C schools.

    Some have even ventured into private schools. All this is because

    everybody wants to see their children getting the best quality

    education for their children. Unfortunately unforeseen expenses either

    than school fees, like cultural activities and social events are not

    budgeted for. Some parents fail to pay for their childrens transport,

    uniform and food. Children end up dropping out of school because of

    absenteeism, they fail at school because legal action is taken against

    parents by school Governing bodies.

    All this is done because both the child and parent want to be socially

    acceptable.

    3.1.6 Selfish and Covetous Spirit

    Placing self-interest above the interest of others as well as unwise and

    competitive spending habits land people into unwarranted debt. People

    overspend and their self-esteem is destroyed. They compete with their

    friends, neighbours and relatives. They set themselves very high

    11.

    standards and later fail to maintain them, they then resort toborrowing and finally end up in debt and end up loosing everything they

    have. People must learn to be content with what they have and even

    learn to wait until they have raised enough money to purchase their

    desired goods.

    3.2. Love of Money

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    One of the plans the devil uses to put people into debt is to try and

    instill in them the love for money. Money is definitely not the cause of

    evil but what causes the evil? let us study 1 Tim6:9-10.

    But those who desire to be rich fall into temptation and a snare, and

    into many foolish and harmful lusts which drown men in destruction andperdition. For the Love of Money is a root of all kinds of evil, for which

    some have strayed from the faith in their greediness and pierced

    themselves through with many sorrows.

    Money on its on its not wicked, but it is the love of money that is

    dangerous. Love of money leads to covetousness. Because people are

    covetous, they resort to any means or schemes of getting money not

    taking precautions.

    3.2.1. GamblingGambling in the form of lottery, casinos and horse racing has hit the

    families in a terrible manner. According to :The Money Standard of

    June 2000, About R580 Million a week is fed into slot machines at

    Gautengs five casinos. Gautengs casinos therefore make a gross profit

    of about R34 Million a week. Gambling is becoming a fast growing

    phenomenon since it hit America. A company based in Cape Town is

    preparing to give South Africa the first South African internet betting

    once the legislation is in place.

    Many family members have become addicted to gambling and often

    breadwinners gambling with salaries to the detriment of their families.

    Gambling is addictive and habit formation. Generally families are robbed

    of their livelihood. Rehabilitation of gamblers needs to be considered as

    a matter of urgency to help those who are already in this predicament,

    12.

    3.2.2. Get rich Schemes

    Many people who could not wait upon the Lord, become victims of getrich quick schemes. The schemes attract many people to invest and it

    pays them high dividends. As the schemes grows, the scheme crashes

    and folds away leaving many families stranded and in debt. People go and

    apply for loans with the intention of investing. When the scheme folds

    away, they are left in debt. Children of God need to put the spirits into

    test. Do not just invest any where. First ask God if it is His permissive

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    will for you to invest. Ensure that there is no contravention of the law

    by the investors. The scheme must be registered. Insist on seeing the

    registration certificate. If it is a new idea, challenge the law to

    register or recognize it.

    3.2.3. Cash Loans

    The cash loans industry has become one of the most lucrative business

    in South Africa. Because of continuous debt, families who are listed by

    the credit bureau, people who have been turned away from the banking

    institutions resort to cash loans as the only alternative. Some people

    refer to such institutions as Loan sharks or vi. Mashonisa because

    of the enormous interest demanded on payments. Interest varies

    propotionaly from between 29 and 33 percent. Long term loans are

    deducted directly from the clients pay slip through the debit order.

    In some cases people who have not paid back their loans have been

    roughed up by oversized men who even took their vii. ATM cards and

    Pin numbers to get their money back.

    Recently, the term Micro-Lender is the term used. The process is

    referred to as usury, defined in the dictionary as the act of lending

    money at interest, especially at an exorbitant or illegal rate. The

    excessive high interest rates charged by Micro Lenders have caused

    sharp critisism to be directed at the industry. Today even furnitureshops offer Cash Loans. Recently even some Unions offer cash Loans to

    their members. The spirit of borrowing is fastly catching up with us.

    13.

    My caution to Christians is, do not make a Loan to payout a Loan, the

    Lender is a slave to the borrower.

    3.2.4 Failure to pay your BillsMany people leave a carefree life of impulsive shopping and ignoring

    most of the bills that they accumulated. Bills are either never paid or

    partly paid and never on time.

    A person, who is in debts, hides the bills all over the house. Water and

    lights are cut off and turned on at additional costs by the local council.

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    Telephone services are discontinued and reconnected every now and

    then. People who are in debts always look forward to their annual bonus

    as their salvation.

    Some people ignore their accounts and tell lies to their debtors. They

    Buy time and pay only the instutions that inflict their greatest

    pressure. Because they have so many accounts to pay, they cannot pay

    all of them at a go and therefore, they rob Peter to pay Paul. They

    ignore debtors letters and reminders and eventually land in serious

    trouble.

    3.3 Credit Cards

    The introduction of plastic money has made borrowing much easier than

    before. More sophistication has been added in the sense that you can

    get the facility over the telephone without filling in any forms. Theseare pre-approved and sent through the post. A person is given a limit

    (power to spend money they dont have) and there is no discussion of

    the loan repayments. Interest rates of between 21 - 25 percent are

    charged. This is a unique facility to our people and generation and it has

    become a status symbol. Gold cards are awarded to certain privileged

    people. The credit card impresses and excites everyone until the money

    is charged into the individuals account. In America, credit cards called

    Tiny Tots are issued to 12 years olds. Training the children to be in

    debt at a very early stage.

    14.

    These facilities can be very useful if you have self control as the

    fruit of the Holy Spirit (Gal. 5). To those who know themselves to have

    no self control, I say do not plunge yourself and those you love to the

    bottomless pit of debt. It can cause you to loose every thing you have.

    Credit cards have taken the place of accounts and peoples buying andspending power has increased.

    No matter what the situation is and no matter who is doing it, the word

    of God reminds us: -

    train up a child in the way he should go; and when he is old he will not

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    depart from it. The rich ruleth over the poor, and the borrower is a

    servant to the lender. Prov 22:6-7

    3.4. Housing Bond

    The concept of home-ownership has become a pride to every individual

    in our nation. It is very exciting to own a house or property. The initial

    plan of a bond was to help a young couple to purchase a home so that in

    their years of retirement, the home is debt free.

    No longer is the situation, nowadays banks are both allowing and

    permitting people to borrow against the equity. People apply for the

    second even the third mortgage bond. Financial planners and even tax

    experts encourage borrowing from the bond as well because they say

    the interest is low.

    The meaning of the word bond means to enslave. A person who has

    taken a mortgage bond, is actually bonded or a slave to the bank. He

    becomes a servant of the lender and the bank ruleth over him. That is

    why even after signing for occupation and registration of the bond, the

    bank still retains the title deed certificate. This actually means that

    you are not the rightful owner, the bank which retains the title deed is

    the real owner. Recently the cars that are financed by banks also use

    the same procedure. The bank retains the original registration

    certificate until the car has been fully paid up.

    15.

    Let us take a close look at the amount of interest that an individual

    pays: N.B. This is a rough estimate.

    EXAMPLE A: ( Purchase of a car )

    Loan amount: R100 000.00

    Period of repayment: 60 months or 5years.

    Monthly installment: R2 500Monthly interest: R833

    Total interest over 5 years: R50 000

    Total amount paid over 5 years: R150 000

    EXAMPLE B: ( Purchase of a house )

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    Total Bond Value: R100 000

    Period of repayment: 20 years

    Monthly installment: R1353.88

    Monthly interest: R937.21

    Total interest over 20 years: R224,931.00

    (See appendix 2 for more bond interest categories)

    Why pay your house over 20 years (Example B) when you can actually

    pay it off in five years? (Example A) This is for the convenience and

    sustainability of the banks. Christians should start looking at

    alternatives of reducing their bond repayment periods so that when

    they reach retirement age, they must be enjoying a debt free

    retirement. Banks must allow you an option to purchase a house for a

    shorter period according to your choice and affordability of the buyer.

    The question to be asked is: why should I pay R 100 000 in 20 years

    when I buy a house yet I pay for 5 years when I buy a car?

    The answer is, the borrower is the slave of the lender.

    16.

    3.5 The Taxation System

    The average South African has to pay about 45% tax. This equals to

    wages of almost a full year. Normally one works for an average 8 hours

    per day and is paid weekly or monthly. A typical scenario is that

    everyday you have to work for about two hours fourty three minutes

    for the government or even more before you begin to earn money for

    yourself.

    This is income tax alone. The State laws have become very harsh on tax

    defaulters and more and more people are facing prosecution. Although

    the state has tried to decrease the tax marginal bracket, the money

    owed by individuals on Tax still affects the family. More business have

    closed down and many have gone into liquidation as the economy and

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    investor confidence goes down. South Africa is currently sitting with an

    unemployment rate of over 40%.

    In addition to the income tax, there are various taxes and levies that

    hit hard on the ordinary man in the street. 14% Vat on all perishable

    and non-perishable goods make it difficult for families to survive

    because these taxes are also levied on telephone accounts, water and

    lights account. In addition to the vat, debtors also add interest for not

    paying in time. PAYE (pay as you earn) is also deducted from employees

    salaries. Despite this, the word of God says:

    give unto Caesar what belongs to Caesar. Matt 22:17-21

    Churches, business and family members need to take tax seriously and

    where possible employ professionals to run their tax affairs because

    through negligence and ignorance they can either end up in jail or inserious debt.

    3.6 Law-suites

    Many families and individuals have found themselves impoverished and

    in debt after what they thought would be a short legal procedure ended

    up dragging and costing more than budgeted for. Unscrupulous lawyers

    also strive on victims of the law. M.V.A claims have promised huge

    payouts only to find that the actual amount paid out is far less.

    17.

    Some people borrow money equal to the initial claim only to find they

    receive a far less amount than expected.

    Estates taking long to be wounded up also take lots of finances and

    families end up loosing a greater percentage of their inheritance

    towards paying lawyers who suddenly present a final account with lots

    of hidden costs. It is imperative that every child of God should watch

    and pray that they enter not into temptationMatt 26:41. Many people

    have slept and woke up in debt the next day loosing property and goodsthat they had accumulated throughout theirs lives. Because they owe

    more than they can repay. Let us take care and build a hedge around our

    property by avoiding to land in debt and start running our finances Gods

    way.

    3.7 Signing as surety for someone

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    Surety is a devastating trap that only leads to hurts and bondage. Avoid

    signing as surety for someone. Surety can be dangerous when the party

    involved does no longer or through some mishap is unable to honor his or

    her financial obligation.

    Prov 11:15He that is surety for a stranger shall smart for it: and he that hates

    suretyship is sure.

    Prov 17:18

    A man void of understanding strikes bonds and becomes surety in the

    presence of his friend.

    18.

    3.8 Unemployment and Retrenchment

    Due to several reasons both known and unknown, a number of businesseshave closed down. Some have done so because of failure to pay their

    taxes whilst some have gone into liquidation. Some business owners do

    not have confidence in a black managed government and have

    deliberately closed down and have invested their monies offsure.

    Some foreign investors are adopting a wait and see attitude before

    they plough in investments. South Africa is currently sitting with

    unemployment rate of over 40% and that is why crime is rife. People

    who lost their jobs went into debt as well.

    These words of wisdom are from Gods financial Principles. The way we

    run our finances must be in line with the word of God. Our financial

    standing as Christians must be so impressive that the world will want to

    serve the Lord Jesus Christ and be saved.

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    19.

    2. CHAPTER 4

    HOW DEBT AFFECT US

    Maria is a devoted Christian, she has been punctual at work, excellent in

    all she was assigned to do. At church she has been a regular tither anda faithful giver. Her bills were paid in time and she bought most of her

    things in cash.

    Recently Maria was promoted to the position of manager. She received

    double the salary she use to get and her lifestyle changed completely.

    She bought a car, moved to a more posh suburb in the inner city. She

    furnished her new home with expensive furniture from various

    furniture shops where she acquired credit.

    Maria was very disturbed at the end of the month to discover that all

    her money has to go towards account repayments. She has to pay forher new car, pay for her car insurance, and also supply petrol for every

    trip she has to take. Suddenly she could no longer afford to buy

    groceries. A friend advised her to apply for a credit card, petrol card

    and overdraft facilities from the bank. This was granted to Maria and

    now, she will buy food from the credit card, petrol from petrol card and

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    she will now have lots of money to spend. Maria was now able to spend

    the money the way she wanted to and she kept on spending without end.

    One day, Maria came home, she found that the house was dark, she

    tried to switch on, there were no lights. Her worker, Anna, came and

    gave her a letter from the City Council the electricity was

    disconnected. She immediately realized that she had not been paying

    her electricity account for the last two moths. She remembered that

    she had overdraft facilities that she can utilize for this emergency.

    She went to the electronic teller machine to try and withdraw some

    cash. On arrival, the transaction was declined because she had

    overdrawn her account. She immediately drew a statement on her

    account and discovered that she had made lots of withdrawals and has

    exceeded her limit.

    20.

    She went home frustrated and thought of phoning a friend to seek help.

    When she picked up the phone to call, a message from the phone

    cautioned her that the phone had been suspended.

    She burst into frenzy of tears and started to break down. Her

    daughter Xoli, arrived from school and brought a note to her this was a

    final demand for school fees. It never rains but pours. Her Aunt who

    she has been owing some money, arrived the same evening requestingthe outstanding money to be paid with immediate effect. This brought

    her into confrontation with Maria because she was emotional in handling

    the issue; the situation was almost out of control and nearly became

    violent.

    As Maria was praying, asking God to intervene in her situation, she

    remembered that ever since she was promoted, she has never tithed,

    she has given very little, she has neglected God, and her self interest

    had increased, she realized that she had let God down, yet God has

    been so good to her. She started to weep, condemned her self, stoppedgoing to church, she was feeling guilty and sinful. Maria received

    numerous phone calls at work from her bank, requesting her to settle

    her account immediately. She got a letter from school threatening her

    with legal action. Maria became a ball of emotions; she was continuously

    at loggerheads with people at work and her performance deteriorated.

    She was spending restless nights and she developed nervous tension and

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    had to be admitted to a psydiatric hospital for acute depression. Just

    like Maria, many of us are caught by the web of debt and when we are in

    debt we get personally affected and in return we affect many other

    people and even our relationship with God is also affected. Our attitude

    to money and how we manage our finances can seriously be affected.

    Money is not only coins and currency. It is also a means by which people

    rate their own personal success. It is in most cases a source of

    tremendous conflict between husbands and wives, seeblings, relatives

    and friends.

    21.

    The word of God reveals that the way you conduct your finances

    indicates a lot about the condition of your heart. People who ignore

    Gods way of handling money are directed by selfishness, lack of

    discipline and it is important for us to know that Christians must study

    the Bible and discover Gods view of money and how it should be used.

    Many families lack contentment and eventually they land in debt

    impoverishing their family members. We should stop hoarding money

    trusting that it will be our security or even stop over spending moneyhoping to find pleasure.

    Rather let us live a life of contentment and believe God for our

    prosperity. Some people are affected by the fact that they do get

    money but are very careless in the way they spend their money.

    Debt affects individuals and their families in many different ways.

    It causes anxiety and psychological pain to an individual, the individual

    also gets heightened emotionally and develops mood swings, usually this

    is accompanied by a feeling of self - condemnation, a feeling ofuselessness and this can also lead to acute depression. An individual,

    who fails to pay the bills, feels irresponsible and this leads to a low

    self - esteem.

    A person who is in debt spends lots of sleepless nights (insomnia), lack

    of sleep leads to fatigue and loss of appetite, this can be a chain

    reaction and can lead to many diseases like ulcers, high blood pressure,

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    stress as well as cardiac problems.

    4.1 DEBT CAUSES DIVORCE

    Failure to manage ones debt has been a major reason why some couples

    have been divorced. Many spouses left the marriage when they

    discovered that there was more debt than money to repay their

    accounts.

    Debt strains the marriage relationship and partners start to blame each

    other for their failure to manage their financial matters. They become

    broken - hearted as their goods are repossessed and they hurt each

    22.

    other in words and emotions run high. Eventually communication stopsand the marriage ends up in a divorce.

    When debt comes, the family is impoverished and parents fail to honour

    their financial responsibilities to their children. Children grow up being

    the greatest sufferers, as they become the pawns in the money game.

    4.2 DEBT DIVIDES FAMILIES

    In most cases when a person is in debt, the tendency is that they

    quickly yield to the temptation of going to their next of kin to borrow

    money. Son borrows from father, sister borrows from brother etc. theproblem begins when one fails to pay back. Many family relationships

    have been greatly strained by such behavioral tendencies. Fathers have

    been noted to have stopped talking to their sons because of the

    unfulfilled promises to pay back what was due to them by their children.

    Even lifetime friends and relatives turned lifetime enemies within a

    Short space of time when money owed was not paid back. The main

    cause of debt in the families is that families spend more than what they

    earn. Debt facilities encourage a lifestyle of uncontrolled spending.

    4.3 Debt Encourages a Lifestyle or Uncontrolled Spending

    The easy availability of facilities for plastic money has made borrowing

    much easier than before. Almost everything can be purchased though

    plastic money e.g. petrol, clothes, food, etc. These facilities are given in

    a form of loan repayments, they are pre-approved and a limit is given.

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    This is buying power given to you, to spend money you do not have.

    Money given out by the financial institutions is charged at the interest

    of between 21 - 25 %.

    Although a credit card can be a good facility, one must learn the art of

    controlling it and not visa versa.

    23.

    Status symbols like the gold card also makes allowances for people with

    better affordability to have more buying power. Even students fresh

    from school starting to work are presented with this plastic power and

    this teaches them to live on debt for the rest of their lives.

    Proverbs 22:6,7 says:

    Train up a child in the way he should go: and when he is old he will not

    depart from it.

    The rich ruleth over the poor, and the borrower is a servant to the

    lender.A child who learns to live on credit becomes a slave to the

    borrower. Children are taught a lifestyle of living on debt. Spouses buy

    almost everything they have on debt and are not patient enough to

    accumulate money and buy goods for cash.When month end comes, joy flies out of the window in the house when

    family members discover that they cannot pay their bills - then fighting

    begins.

    4.4 Debt leaves us open to Temptation

    People who are in debt are desperate for money and can willingly

    support any move to get money whether legal or not. This vulnerability

    makes them open for temptation to crime and corruption.

    4.5 Debt blacklists you

    People who fail to pay their debt and fail to negotiate with their

    debtors, end up in a deadlock with their debtors. The debtors then

    submit their names to the Credit Bureau which then lists a person as a

    person who is not credit worthy. This listing blacklists you and you can

    never be able to obtain any form of financial assistance anywhere you

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    want to purchase some goods on credit. However the Credit Bureau has

    been abused of late. People who have been listed have learned to be

    more financially organized and learnt to buy in cash. However new

    financial institutions are now helping these people but charging them

    more interest.

    24.

    The spirit of debt has come even to the Nations. Recently many Africa

    nations that have loaned money requested the International Monetary

    Fund (IMF) and the World Bank to write their debts off. If this spirit

    is encourage by national leaders it is very easy for the people on theground to accept this as a normal lifestyle. Debt has left some nations

    poor. Let us train our children to stay out of debt and learn to depart

    from making debt an acceptable lifestyle. Debt affects us in many ways.

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    25.

    CHAPTER 5

    HOW TO GET OUT OF DEBT

    If it is possible, a Christian must stay out of debt altogether. By this I mean

    that all that you have must not be bought out of debt or hire purchase but

    all must be bought cash. This is one discipline that we must learn to put into

    practice. God wants us to be totally liberated in our finances. If we are

    bound financially, we shall not be able to serve God wholeheartedly.

    Sometimes Christians who are in debt cover up their irresponsibilities of

    poor financial management by saying God is allowing them to pass through a

    season and soon and very soon the blessings are coming their way.

    God has established a covenant with us and that covenant is that if we are

    His children, we shall be established financially. Confess this, believe it and

    be disciplined and you shall see how blessed your finances shall be. In this

    discussion I will focus on a few things that can be done if we are determined

    to win the war against debt.

    5.1 Identify the spirit of debt and bind it

    Paul in I Timothy 6:11-12 says to Timothy .. fight the good fight of

    faith ... this is what we believers have been called to do. We need to

    declare warfare against the spirit of debt through developing intimacy

    with God.

    We need to know that debt is not from God and is brought about by

    the devil. The devil has only one agenda for the Christians; the thief

    comes to steal, kill and destroy. John 10:10. Thank God for Jesus

    because we do not panic for we know that the devil has already beendefeated. We need to take authority over debt which manifests itself

    in a form of a spirit. Debt is a spirit and it manifests itself in our

    lives. It is the force that divides us against our God, our family, our

    church and our debtors. Division leads to a fall. The plan of the devil is

    to divide and rule (Matt.13:25) .a house divided against itself will

    not stand. Debt is our enemy and it is to be opposed.

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    26.

    Debt advances against Gods will. Debt is a spirit that keeps us from

    prospering. A person who is controlled by the spirit of debt is alsoliving in poverty.

    Matt. 12:29 states a very important point to note when you fight the

    spirit of debt:

    Or else how can one enter into a strong mans house and spoil goods

    except he first bind the strong man, and then he will spoil his house

    Debt is a spirit, it is the strongman of finance, binding many people

    into chains of financial bondage. Matt.16: 19 gives us spiritual

    authority to do it And I will give unto thee the keys of the kingdom of heaven: and

    whatsoever thou shall loose on earth shall be loosed in heaven.

    Yes, thank you Jesus that we have been given the keys to lock the

    spirit of debt behind bars. Right now let us bind the spirit of debt in

    our lives and release financial breakthrough and posses our wealth; let

    us not allow the devil to be a hindrance to our financial prosperity.

    Pray, repent, fast against this spirit bearing in mind Eph.6 that it is a

    spirit we are to fight. Finally ask the Holy Spirit to guide you because

    He is the commander of our spiritual battles. Do not grieve the Spiritof God, listen to Him and allow Him to guide you in the use of your

    finances.

    5.2. Work out a plan to get out of debt

    Set up a strategy of dealing with debt by drawing a plan, have a vision

    to get out of debt. Once there is a plan, God will make provision. Once

    the plan is drawn, commit it to the Lord in prayer and He will prosper

    it Ps.37: 5.

    Draw a list of all your bills and start paying them off from the

    smallest bill. Once it is paid off do not go for another debt but pay

    off the next until you remain with your largest bill. Pay only one bill at

    a time until you are out of debt. With commitment and sacrifice, a

    written plan can help you to eliminate your enemy (debt) completely.

    It is also of vital importance that you speak to your debtors about

    your financial position.

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    27.

    Do not ignore debtors or try to cheat or even try to buy time. Tell

    them or arrange with them you will pay (date) and how you will pay.

    5.2.1 Ask God to give you ideas to support your plan

    In II Kings 4: 1-7 Elisha advised a widow who was in debt and in

    danger of loosing her children to do the following:

    5.2.1.1 Sell some goods in the house to pay off your debt

    He asked her a thought-provoking question, what do you have in your

    house? The answer to some of your problems is within your house.

    There are many items and goods that you keep at your house that you

    can sell. Identify the goods and sell them to pay off your debts.

    5.2.1.2 Borrow Vessels

    Elisha advised the woman to borrow the vessels in the neighborhood.

    Go and study how people operate their side-business in other words

    get lots of business ideas and adopt one to suit your environment as

    well as your pocket.

    You can open an opportunity of a lifetime for you and your family.

    Look for a stall at a flea market and sell something. Use your hands to

    do craftwork and look for a market place to sell the product. Pray fora business idea and God will open doors that you never thought would

    be open for you. Apply your faith and the situation around you will

    change. My prayer is that Banks shall begin to be more supportive to

    people with ideas and release the finances they so desperately need

    to fulfill their God given desire.

    5.2.1.3 Shut the door and pour out the oil

    When God has given you the idea, register the idea. Many people in

    black communities do not register the ideas that God has given them.

    This results in people copying the idea. Register the idea and let

    anyone who likes your idea buy it as a franchise from you.

    An example I can quote is that of amasi. The brand name for amasi

    and amahewu is originally a black mans idea. But guess who is running

    the supply and distribution of these predominantly black products?

    The so called spaza shops and chicken dust are other examples.

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    28.

    If you do not register an idea, somebody just copies the idea next

    door and the business idea spreads like a mushroom limiting the

    potential owner to benefit from his brainchild.

    The saddest part is that the founder of the idea dies a poor man.

    Colonel Sanders of the Kentucky Fried Chicken I am sure died a

    millionaire because he registered his idea and people who like his idea

    have to pay for using his idea.

    5.2.1.4 Pour the oil into the vessels until they are full

    The oil is yours but the vessels are borrowed. After you have

    borrowed business ideas, put in your own talent or ability into the

    business idea that will suit your skills and market.

    Work hard on your business and do not tire until you have saturatedboth your idea and target market.

    Go sell the oil, pay your debts and live with the rest.

    Sell your products, involve your children.

    If the idea works well it will become a family inheritance for your

    children as well.

    When money comes in, do not forget to pay your debt.

    Save the rest to enable you and your children to enjoy a debt free

    life.

    5.3. Apply for a financial rehabilitation

    If your finances are in such a mess that none of the above plans can

    help you, pray seriously and be sure you are hearing from God and

    then ask for godly counsel. Do not rush to take peoples opinions but

    rely entirely from the counsel of the Spirit of God. When all has

    failed and I believe that you will also be convinced that this is the only

    last resolve, consult the professionals and apply for financial

    rehabilitation. Prov.24: 6 For by wise counsel thou shall make thy

    war"

    Study the following examples of alternative measures that can be

    taken when people have very serious problems.

    29.

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    The following are the Assets, Liabilities, Income and Expenditure for the three

    families: the Abel, Botha and Cane family.

    A. B. C.Family A Income > Expend. Family B.Income < Expend. Family C.Income = Expend.

    ASSETS

    VALUE Fixed Property (House)

    165, 000.00 Motor vehicle

    0.00 Tractor with trailer

    20,000.00 Furniture & fittings

    16.000.00 Unit Trusts

    2,500.00 Electricity Deposits

    500.00 Cash @ Bank

    1,000.00 Cash on hand

    350.00 LIABILITIES Mortgage

    Bond (house) 151,000.00

    Furniture & Fittings

    2,000.00

    Edgars,SalesH.Truworths

    6,000.00 Bank Overdraft

    200.00 Bills Payable5,000.00 Sundry Creditors

    100.00 INCOME SALARY

    (wife) 0.00

    SALARY (Husband)

    8,000.00 Investment

    500.00 Other

    1,000.00 EXPENSES Tithes &

    Offerings (1,000.00)

    Taxation

    (1,950.00) Pension

    (600.00) UIF

    0.00 Medical Aid

    (500.00) Rent/Bond payments

    (2,000.00) Furniture Installment(300.00) Credit Cards

    (800.00) Life Insurance

    (200.00) Transport cost

    (400.00) Clothing Edgars etc.

    (500.00) Rates & Taxes

    (500.00) Electricity & water

    (600.00) Doctor & Chemist

    (200.00) Telephone Accounts

    (120.00) Cellular (Vodacom)

    (100.00) Groceries

    (500.00) Helper/Gardner

    (230.00)

    ASSETS VALUE

    Fixed property (house) 0.00

    Motor Vehicle 35,000.00

    Furniture & fittings 12,000.00

    Shares (investments) 2,000.00

    Electricity deposit 800.00

    Cash on hand

    200.00 LIABILITIES Mortgage

    Bond 0.00 Motor

    vehicle 22,000.00

    Furniture & fittings 0.00

    Edgars/Sales H.Truwor. 5,000.00

    Std Bank personal loan 5,000.00

    Bank overdraft 5,000.00

    Bills payable 5,000.00

    Sundry creditors 3,000.00INCOME SALARY (wife)

    5,000.00 SALARY (husband)

    1, 500.00 Investment

    0.00 Other

    0.00 EXPENSES Tithe &

    Offerings (700.00) Taxation

    (1,400.00) Pension

    (500.00) UIF

    (50.00) Medical Aid

    (500.00) Rent/Bond payment

    (1,000.00) Furniture Installment

    (200.00) Credit cards

    (300.00) Car insurance

    (200.00) Transport cost(200.00) Clothing Edgars etc

    (500.00) Rates & Taxes

    0.00 Electricity & water

    (400.00) Doctor/chemist

    (200.00) Telephone Accounts

    0.00 Cellular (Vodacom)

    (200.00) Groceries

    (500.00) Helper/Gardner

    (200.00)

    ASSETS VALUE

    Fixed Property (house) 100,000.00

    Motor Vehicle 50,000.00

    Furniture &fittings 20,000.00

    Shares (investment) 0.00

    Electricity Deposit 1,000.00

    Cash @ Bank 500.00

    Cash on hand 200.00

    LIABILITIES Mortgage bond

    50,000.00 Motor vehicle(loan)

    10,000.00 Furniture & fittings

    2,000.00 Clothing, Edgars etc.

    600.00 Std.Bank pers.loan

    0.00 Bank overdraft

    0.00 Bills payable

    0.00 Sundry creditors200.00 INCOME SALARY (wife)

    2,000.00 SALARY (husband)

    5,100.00 Investment Other

    EXPENSES Tithe & Offerings

    (650.00) Taxation

    (1,300.00) Pension

    (450.00) UIF

    50.00) Medical Aid

    (500.00) Rent/Bond payment

    (1,100.00) Furniture Installment

    (100.00) Credit cards

    0.00 Car insurance

    (200.00) Rates & taxes

    (200.00) Electricity & water(350.00) Telephone Accounts

    ( 100.00) Cellular ( vodacom)

    (400.00) Groceries

    (400.00) Helper/Gardner

    0.00

    Surplus/(Deficit)

    (1,000,00)

    Surplus/(Deficit) (2, 750.00) Surplus/(deficit) (50.00)

    N.B.Surplus or deficit is determined by subtracting income from expenses.

    Net Asset Value (owners equity) is determined by subtracting liabilities from Assets.

    30.

    FINANCIAL REHABILITATION PLAN

    QUESTION: You are requested to advise the two families, to either

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    implement the plan or have the budget.

    SOLUTION TO THE QUESTION ABOVE

    Family A have a deficit of 1000.00. but their Income is supposed to be more

    than their expenses.

    TWO IMPORTANT THINGS THAT THE FAMILY A CAN DO

    3. The tractor and trailer worth 20,000.00 can be sold and the proceeds be

    used to pay off the furniture, Edgars, Bank and sundry creditors.

    The following list of expenses will be removed and a Surplus of 600.00 will

    be realized.

    Furniture 300.00

    Credit cards 800.00Edgars 500.00

    __________

    Total Cashflow 1600.00

    After paying all the liabilities, they still have R7, 000.00 which can be

    invested somewhere and earn interest.

    4. The A. familys Balance Sheet is very strong, borrowing wont harm them.

    If a loan of R13, 000 is raised at a monthly installment of sayR500.00.

    The net results is that a surplus of R1, 100-00 will be realized.

    Therefore a simple Rehabilitation plan can help the A. Family.

    31.

    FAMILY B.

    Family B have a deficit of R2750.00

    This familys Balance Sheet is weak, they are highly geared (borrowed).

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    Borrowing wont help this family but will get them into more serious financial

    problems.

    A solution for this family is a FINANCIAL REEHABILITATION PROGRAM

    Voluntary Distribution Plan has to be made and Creditors be approached.

    The Magistrate Courts Act 32 of 1994 (as amended) section 74 can be

    invoked by the Debtor if cooperation is not forthcoming.

    FAMILY C.

    Family C has a deficit of R50.00.

    This family has a very strong Balance Sheet. All they need is a good plan

    (budget) Long term and Short term. (Spending wisely)

    32.

    Consolidation of DebtWhen you owe too many debtors, you can consult financial consultants

    who can take over your account and make one loan for you to be able

    to settle all your accounts under one account - This is the

    consolidation of your debts. Instead of paying many isolated accounts

    you pay one account until your account has been fully settled.

    *

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    5.4 Draw a budget and stick by it

    Our money in a form of salary comes from God. If you can begin to

    see God as Jehovah Jireh, your provider, then you will understand

    that your employer is used by God, God is your actual pay master.

    If you are grateful enough you will be cautious on how to use yoursalary or wages. When you receive your money, ask the Lord to bless it

    and then draw a plan of how you want to use the money.

    Write out a plan of anticipated expenditure and list it in order of

    priority. A budget helps to keep you focused and helps you to make

    responsible decisions.

    Becareful of the small purchases

    During summer, when trees have produced good fruit, there are small

    flies called fruit flies. These flies are very small but they can

    completely destroy the fruit. The budget can be completely

    disorganized by the small purchases that one has not budgeted for.

    Small flies cause great damage, small purchases cause a dent in your

    budget.

    Luke 14:28 endorses the fact that we have to plan for everything that

    we have to do successfully. If the Lord is master of your life, put Him

    as a priority in your finances. Many people do not care about budgeting

    and some never care to budget and therefore find themselves

    exceeding their boundaries of spending and wasting a lot of money.

    Let us now have a look at an example of a family budget.The only time I recommend a loan or borrowing of finances is when

    you want to consolidate your accounts or want to buy a car, house, and

    furniture. You must be able to pay back the loan and get out of it as

    soon as possible.

    33.

    HOME BUDGET MONTH_____________ YEAR__________

    GROSS INCOME:

    5. Salaries ___________ 6) Dividends_________

    6. ___________ 7) Sale of goods______

    7. Extra Job ___________ 8) Capital gain _______

    8. Rental ___________ 9) Other ___________

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    9. Interest ___________

    INCOME TOTAL

    TitheOffering

    Tax

    Medical Aid

    Bond or Rent

    Water/Elec./ Rates

    Telephone/Fax/ Post

    General groceries

    Meat

    Milk/bread/cheese

    Vegetables

    Sweets/chips/coldrinks

    Take aways

    Entertainment

    Transport/cars/petrol/license

    Books/tapes/cd s/ videos

    Clothing

    Education/ School fees Extras

    Insurance Premiums

    Life Insurance

    Investments

    Savings

    Holiday

    Installments Purchases

    Home improvements/ maintenance

    Furnishings

    Birthdays/Gifts & Toys

    TV Linces x12

    Maid

    Other

    Last Months (Surplus) or Shortage

    Expenses Total

    (Surplus) or shortage

    34.

    Percentages

    It is suggested that God should be considered as the important part of

    your budget. Therefore the tithe - 10% of the gross income must be a

    Christians priority. Another aspect that must be considered is the

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    savings. Savings should be 10% of your paycheque. The living expenses

    can be about 75% and 5% can be utilized as an emergency fund.

    Make your budget simple and realistic. Be ready to adjust in case of

    emergencies. Start teaching your children at the age of thirteen

    (teenage) to start managing their allowances through a budget and

    tithe. They must be taught how to earn extra money and how to budget

    and spend money wisely. Prov.22:6 train up a child.

    5.5. Live a simple lifestyle

    Deal with the roots and not the fruits of the problem. If you want to

    remove an orange tree growing on your entrance, you do not become

    content by removing loads and loads of oranges or by pruning lots of

    branches. This is no wisdom at all. Cut the roots, it is the roots thatproduce the orange tree.

    Fight against the sophisticated lifestyle that you lead that eventually

    leads you to overspending. Know exactly what it is that leads you to

    overspending. Pride can cause you to buy very expensive furniture in

    order to compete with friends or neighbors. Sometimes people buy

    things they cannot afford just to create an impression that they are

    rich. This is a false impression, you are not only deceiving others but

    yourself as well. Use a taxi instead if you are failing to maintain the car.Sell your car or park it if you cannot afford to run its expenses. Take

    your child to a cheaper and affordable school without compromising the

    standard. Relocate to a cheaper and more affordable place than live

    where the rates are expensive and the bond is beyond your

    affordability. Why keep a cellphone when you cannot even afford

    airtime for emergencies? You can live without a cellphone, it is all in the

    35.

    mind. Do not live on overdraft facilities, use your paycheque and learnto live on your affordability.

    Plan your life; do not be swayed by the crowd, live your life; do not allow

    life to live you. John Wesley always wore cheap clothes, ate a simple

    meal and gave a lot even though he was a rich man. He kept one forty

    seventh of his earnings and gave away 98%.

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    Many people go into expenses because they want to prove a point to

    people. If we can learn to live a simple lifestyle lived by birds and

    flowers, we shall enjoy in its simplicity. Let us stand strong on the word

    of God and do it. Eat the food your purse can afford and wear the

    clothes you can afford to buy. if you live a simple life, you will learn toput your trust in God and when you trust Him and put all your cares

    upon Him, He will surely meet your needs on a day to day basis.

    5.6 Trust God for His intervention

    When you seem defeated, ask for Gods miraculous intervention.

    However do not have a wrong misconception about the purposes of

    miracles. Do not disqualify yourself from receiving your miracle by not

    paying tithes and giving offerings. Do not become careless about your

    spending priorities. God will only reveal Himself if you do things

    according to His will. In II Kings 6 we see God miraculously paying off

    the debt of a widow through giving her a business idea of how to make

    money. This woman who was in serious trouble in her financial bondage.

    In II Kings 6:5-6 we also see the prophet Elijah retrieving the axe that

    was borrowed and it fell into the water. This was a debt that was

    accidentally incurred by the sons of the prophets. Through the faith of

    the man of God, he cut down a stick and cast it to the position of the

    axe head. A miracle happened, the iron began to swim. This was a

    miraculous debt cancellation. A word of caution is that once again do notdeliberately commit debts and hope to escape through the gate of

    faith. Remember James 2:17 declares that faith without works is dead.

    God will only deliver you if you combine your faith with your works. Wait

    for Gods intervention when you have reached a cul de sec in your life.

    Change your attitude and rely on the power from above.

    36.

    5.7 Do not make a loan to pay your debtWhen in debt, do not sink yourself deeper through the loan system.

    If you are in debt and you go for another loan, you are just

    transferring the problem from one name to the other. Cash loans,

    revolving credits are very effective means of binding you into high

    interest rate repayments. Some institutions can even recommend

    longer periods of repayment but lesser premiums. Always look out for

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    the catch, a borrower is a slave to the lender.

    Remember it is normal to borrow occasionally but once you are forced

    to borrow money to pay your debts, you need to know that you are now

    living in bondage.

    5.8. Do not rely on your salary find extra income

    When God made man, he put him in the garden of Eden so that the

    Garden should provide for his needs. Gen. 2: 7-9

    Beyond that God set up a river which was parted into four heads.

    Gen. 2:10-14.

    I believe that the Lord has made provision for us not only to drink

    From one source i.e. our employer only, but also to explore other side

    Careers e.g. part time jobs to aungement on our salaries especially if

    we have debts. We need also to go into side business to sell something

    that can bring income to improve our financial position or even learn a

    skill or trade that we can convert to cash. When God send Moses he

    said to him:

    What do you have in your hands.

    Let us discover the potential that God has put in us and God has given

    unlimited potential. Let us not be lazy to work hard and unleash what

    God has put in us.

    37.

    CHAPTER 6

    PRINCIPLES FOR FINANCIAL PROSPERITY

    A question often asked by many people is whether or not God is in

    favour of abundance or poverty in a believers life. The word of God

    through the scripture clearly reveals that we can never achieve

    anything without faith in God. Without faith it is impossible to please

    God (Heb 11:6); without faith you are a non-achiever. Again in Psalm

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    35:27; the word of God says.

    God has pleasure in the prosperity of his servant.

    We need to know that God has pleasure in our prosperity (3 John 1:2);

    and not in poverty.

    Our prosperity is based on using Gods formula for success. This

    formula is based on the Bible. God has a plan to prosper us and not to

    harm us. (Jeremiah 29:11). David also endorses this in Ps 23:1 when he

    says: The Lord is my shepherd, I shall not want.

    There is nothing that we can ask from God and not get it. Matt 7:7;

    Matt 21:22, John 11:22, John 14:13-14. We must learn to trust God

    entirely (Ps 20:7). If you trust God with all of your strength, you will

    understand the reason why you do not need to borrow - We borrow

    because we doubt God, because we are impatient and cannot wait on

    God. We need to know that God can meet all our needs according to

    his riches in Glory.(Phil 4:19). Let us apply Gods principles in our lives

    and the doors of prosperity shall be wide opened for us. Let us take a

    close look at some principles that can really bring transformation if

    truly applied.

    6.1 Pay your tithe

    I believe and I am fully convinced that the tithe is responsible for the

    success of many believers in nowadays. This is my practical experience

    and no one can convince me. Show me a tither and I will show yousuccessful person. There are some schools of theology who advocate

    for the abandonment of the tithing principle because they believe

    that it is an Old Testament economic ideology.

    38.

    My experience as a pastor of our church has shown me that there is a

    difference between the prosperity of a tither and a non-tither.

    Malachi 3:8-12 says non-tithes are robbers of God; they are cursed;

    the windows of heaven are closed for them, the devourer enjoys ashare in their finances. Satan takes a tithe from their salary by

    force.

    The tither meanwhile experiences the extreme opposite: they are

    blessed, the windows of heaven are opened for them, and the

    devourer is rebuked from their finances. We must be regular Tithers

    and not on and off Tithers.

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    Tithing was also part of Mosaic Law aimed at supporting the Levites

    who were full-time, but it is important for us to know that tithing

    started 430 years before the law of Moses was introduced. Tithing

    was never limited to the law but we also read about tithing in the NewTestament. The Bible declares that if we do not tithe, we are robbers

    and we are financially cursed. No amount of praying, fasting or

    blessing from your pastor can help you out of this predicament. Be not

    deceived by people going around teaching that tithing is outdated and

    unscriptural. When tithes are given to Ministers of the gospel, they

    are actually given to the head of the church, Christ our Lord. We must

    give the tithe as an act of thanksgiving and worship to God.

    Tithing is just the beginning of giving, tithing belongs to God, and it is

    to say thank you Lord. Offering is determining the extent of yourharvest. You reap according to what you plant. If you saw sparingly

    you shall reap sparingly, and if you plant Bountifully, you shall reap

    bountifully. (2 Cor 9:6).

    We need to tithe also from our capital and assets. This is scriptural

    (Prov 3:9-10). When you sell your house, or business, you need to pay a

    tithe on the gain you made. Even when you receive shares, an estate or

    profit on investments, life policies, these represent income or capital

    gain. You need to tithe on the profit you get. Everything that you have

    belongs to God, give to God so that you can be blessed.

    39.

    Borrowing from the tithe

    If you borrow some of your tithe because you are tight, you are

    required to pay your usual 10% for the next month plus what you have

    borrowed, plus 20% of what you have borrowed.

    Leviticus 27:31 And if a man will at all redeem any of his tithe, he

    shall add thereto the fifth part thereof.

    It is therefore better not to borrow from your tithes.

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    Tithe without expecting a return but as a form of thanksgiving,

    obedience and worship to God. Tithing is for your own protection and

    you are obliged to pay this portion of your income because that money

    belongs to God. Let us live in full obedience to God and enjoy His

    blessings in our lives.

    6.2 Be a cheerful giver

    Every man according as he purposeth in his heart, so let him give; not

    grudgingly, or of necessity: for God loveth a cheerful giver. 2Cor 9:7

    Giving is a form of worship. What you decide to give is a personal

    decision coming from your heart, not under any compulsion. Giving is a

    sacrifice to God. Something of very precious value that you give to

    God in a form of an offering. An offering is what you give over and

    above the tithe. Offering is what draws your near to God. It is

    something that shakes you from your financial comfort zone. Giving is

    a reflection of your of your attitude to God.

    Types of offering

    Numbers 28 mentions different types of offering. There can be

    various reasons why people offer but the motive must be biblical.

    People can give for the promotion of the gospel. People can make

    special offerings (2Cor 8:2-4; Exodus 25:1-2; People can give to the

    poor Prov 19:17; Matt 25:42,45) you can give to your fellow believers

    (Gal 6:10), you are also expected to give to your enemies (Luke 6:27)when we give, we are not loosing, when we give we shall never lack, God

    will increase our resources. We need to give abundantly. We need to

    know that God will not entrust us with more wealth if we do not prove

    40.

    to be faithful with what we have. As a nation, we also need to know

    that we have a social responsibility to give to poor people.

    Disadvantaged communities have even a bigger challenge, and the =

    challenge is to learn to move out of the dependency syndrome (where

    things are done for you and you live on handouts) to independence

    (where we must learn to give collectively to transform our

    communities and to improve our lives and resources).

    Acts 20:35 says: It is more blessed to give than to receive.

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    Plant a Seed

    Galatians 6:7

    Do not be deceived, God is not mocked, for whatever a man sows,

    that he will also reap.The word of God confirms the fact that if you saw, you must reap.

    The principle is clear no sawing no reaping. If you plant one seed of

    oranges on the ground how many seeds do you get back in one Orange?

    Obviously the one seed has multiplied itself miraculously through

    Gods plan of a hundredfold return. The same principle applies to what

    we give to God. It is multiplied accordingly.

    2Cor 9:6-7 Remember this: Whoever sows sparingly will also reap

    sparingly, and whoever sows generously will also reap generously. Each

    man should give what he has decided in his heart to give, notreluctantly or under compulsion, for God loves a cheerful giver.

    The amount of your harvest is determined by you. What you put into

    Gods multiplication process determines how much you get out. In

    other words your input determines your output. It is also important

    for us to note that God is impressed by quality giving and not quantity.

    Your attitude when you give also plays an important role, God is

    impressed by a cheerful giver. Remember God only multiplies what you

    have put down. When you have planted a seed, exercise a bit of

    patience like a farmer. Do not be tempted to go and dig out the seed

    and check whether it is growing or not. Put your trust in God who is

    your source at this timing the seed will yield the harvest.

    41.

    6.3. Start a Savings Plan

    A good man leaveth an inheritance to his childrens. Prov 13:22. A

    wise man has to plan his future is such a way that his family and

    children are secured. We need to train even our children to lean how

    to save money at an early stage. Children will be adults soon andparents must prepare them to start developing a habit of saving so

    that when they earn their living they will be disciplined to act

    responsibly on their finances. I would advice young couples to start at

    a very early age to save for the future of their children. An example

    is that of a couple who start taking out an investment savings on the

    birth of their child and they continue to increase the premiums with

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    an objective to give their child.

    Plan and Save for your retirement.

    Take a good retirement package that will be almost equal to

    your salary.

    Remember that towards retirement a greater percentage oryour money will be used towards medical expenses - plan for

    your medical insurance as well.

    Plan not to be in debt when you retire pay off all major

    debts like the bond and other major debts.

    Draw a will to protect your investments and appoint an administrator of your

    Estate. Many people do not have a will, this leads to squabbles in the family.

    6.4 When you make a vow keep it

    Deut 23:21

    When you shall vow a vow to the Lord your God, you shall not slack to

    pay it: for the Lord your God will surely require it of you; and it would

    be sin in you.

    Do not betray God by making a promise that you later fail to fulfill,

    this will dent your spiritual relationship with God. Be faithful and get

    Gods blessings on your side.

    Gods financial principles will make us prosperous if we obey and allow

    God to be master of both our finances and property as well as our

    lives.

    42.

    CHAPTER 7.

    POSESS THE LAND

    In Deut. 1:6 the Lord spoke to the children of Israel saying to them Ye

    have dwelt long enough in this mount: this statement suggests that it is

    action time! It is the time to change the mind; it is time to focus on new

    ideas! and move in a new direction. God commands the Israelites to venture

    into new areas around them and begin to explore and conquer them. In verse

    8 God assures them that He has already made provision, they must posses

    the land which He has already given to them as a nation. This statement is

    very relevant to South Africans, it is time that Africans start breaking the

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    tents where they have camped for a very long


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