Last week I had lunch with the leader of our weekly men’s group meeting. He has an amazing story. During his 30+ years of home building and developing in our area he’s been through some tough economic times. His experience is incredibly encouraging because it demonstrates God’s faithfulness to reward our obedience to Him.
During the savings-and-loan crisis of the late-1980s and early-1990s he ran into some serious financial difficulties. His accountant, banker, attorney — virtually everyone — told him to file bankruptcy. They said he “had no choice.”
He refused. Instead he worked through his debts over four years and eventually paid back everyone he owed… and ended up much better off than before his problems began.

The week of Oct. 19, 1987, following Black Monday, I experienced a financial crisis of my own, and I didn’t think my business would ever recover.
I had launched the newsletter, National & International Religion Report, at the beginning of the year, and the week before Black Monday I mailed a large number of promotional pieces to get new subscribers. I invested quite a bit with a marketing consultant and list broker. I printed thousands of brochures, letters and envelopes. And I paid postage to the U.S. Postal Service in advance of the mailing.
When my direct-mail pieces arrived during the week of Black Monday, no one was buying anything. The promotion was a total disaster, and the number of subscription orders we received was dismal. In all my years of publishing, I have never seen anything like it.
I was in way over my head. I had already borrowed from my bank and owed hundreds of thousands of dollars to suppliers. I didn’t have the cash to pay them back, or any hope in generating it. I had no place to turn. And like my developer friend, the sudden economic disaster affecting me was totally out of my control.
Drastic situations require drastic action.
I prayed and told my wife about our situation. She suggested we sell our house. (Just a few months before our financial crisis we had built our “dream home” — a cape cod on a hill overlooking the Blue Ridge Parkway in Virginia.) We agreed to do whatever was necessary. We sold our home, office building, boat — anything and everything we had worked to acquire in the previous 20 years. Within a year we were able to pay off our debts and get out of trouble.

Today, millions of people and corporations across the country are filing bankruptcy. I read a report last year in USA Today that said our nation had set a new record of more than 6,000 people per day filing bankruptcy.
When I was young there was a saying, “As goes GM, so goes the nation.” Since GM filed bankruptcy, I guess the federal government will, too. The President and Congress are preparing a new budget with plans to spend a trillion dollars more than they generate for years to come. Is this the example they should set for citizens to follow? If China tightens its monetary policy, or anything else goes wrong, the effect on our economy could be insurmountable. And even if nothing terrible happens, how will we pay the interest on all this debt?
When government prints money to pay its debt, inflation goes through the roof. If we continue on this path, the results will be devastating. The Jimmy Carter economic fiasco will look minor in comparison. The inflation rate could be as bad as Germany’s before World War II. Back then, people were being paid in cash, and a wheelbarrow full of money was barely enough to buy a loaf of bread.

When the economy is this bad, and the problems are completely beyond our control, what should we do? Here’s what I would tell my three sons…
Pray first.
Be joyful always; pray continually; give thanks in all circumstances, for this is God’s will for you in Christ Jesus. – 1 Thes. 5:16-18
Sometimes it’s hard to be joyful when the future looks bleak, but it’s God’s will for us, no matter how bad our circumstances look. He tells us that His joy is our strength. And before we make any drastic changes, we need to talk to Him about it. Listen carefully to His “still small voice” in prayer. Jesus told us to “ask, seek and knock,” and a door will be opened.
Prepare for the worst.
A prudent man sees danger and takes refuge, but the simple keep going and suffer for it. – Proverbs 22:3
Times like these call for frugality. So cut back — way back. Wherever possible, reduce or eliminate expenses. If and when things turn around, you’ll be in a better position coming out of the downturn. And if these economic problems continue for an extended period, you’ll be in the best possible position to ride it out.
Hope for the best.
Now may the God of hope fill you with all joy and peace in believing, so that you will abound in hope by the power of the Holy Spirit. – Romans 15:13
Prayerfully consider how you would like your life to look in five years, ten years, and twenty years. Create a “big picture” plan and start working toward it. Make a to-do list of six things you must do to reach your goals and start to immediately knock them out. When you’ve eliminated the first six things on your list, create a new one, and continue working toward your goal. Be willing to give up short-term gratifications if the savings will help you reach your long-term goals.
Reduce your debt.
The rich rule over the poor, and the borrower is servant to the lender. – Proverbs 22:7
One plan that I’ve heard for reducing debt made a lot of sense: Pay off your smallest debt or loan as quickly as possible, and make minimum payments on all the rest. When your smallest debt is completely paid, add the amount you were paying on it to your next smallest debt until it is paid off. Continue to do this until you have no debts.
Keep your commitments.
A fortune made by a lying tongue is a fleeting vapor and a deadly snare. – Proverbs 21:6
Scripture is clear about keeping our word, and it doesn’t leave room for not paying our debts. Romans 13:8 says, “Let no debt remain outstanding, except the continuing debt to love one another….” I don’t like saying it during these times when so many are suffering and out of work, but anything less than paying what we have promised is the same as stealing. If we can’t pay now due to a job loss or other circumstances, we need to make arrangements to pay what we owe as soon as we possibly can. “Walking away” is not a biblical option.
Conclusion
Our nation has always come out of recessions and depressions in the past. But this time our government leaders are taking us into debt on a scale like never before. Only the Lord knows how much worse things will get before they get better.
I suppose we could be headed into the period mentioned in Revelation 6:6 when we’ll receive “a quart of wheat for a day’s wages and three quarts of barley for a day’s wages.” But even if we end up in bread lines, we should “be joyful always” and keep a smile on our faces, because we know that “He has given us … an inheritance that can never perish, spoil or fade — kept in heaven … ready to be revealed in the last time.” – 1 Peter 1:3-5