We had such great response to our Creating Your Own Economy series but there was one lingering topic we will address today. That is the topic of debt. It’s hard to have financial freedom if you’re drowining in debt. It’s not just a financial problem, it’s a spiritual problem causing anxiety, hopelessness, discouragement, limitation on generosity, no peace and reduced fulfillment of purpose.
Living with debt weighs on your finances, your family and your future. Proverbs 22:7 says it plainly, “The rich rules over the poor, and the borrower is servant to the lender.” Every time you go into debt, you are volunteering to be a slave, putting yourself under the rule of someone else. This message is not to make you feel badly but to help you.
Last year credit card companies made 100 billion dollars in interest and fees. Avoid interest. Pay off your balance every month. If you can’t pay it off every month, at least make more than the minimum payment.
Debt steals your ability to say "yes" to God. The goal is to be able to help others because you’re not bound up in debt. If satan can’t keep you in sin, he’ll keep you in debt. To reach the land of “extra” you have to at least reach the land of “even”. If you want to be independent from a broken financial system, you must get out of debt and God’s word gives you a path to freedom.
You do not have to accept living in debt. It takes commitment to a decision to get out of debt and obedience to the plan. Debt doesn’t have to control your life. Today’s blue print is an acronym spelling "DEBT" and it will help you to step into financial freedom.
D: Decide to change. The first step is to change your mindset. Make a decision not to live in debt. You cannot fix what you’re willing to tolerate debt as a part of life. Debt is a weight holding you back from everything God has for you. The first step is a decision to tithe. This is what God says to do. If you obey, He’ll give you supernatural solutions.
E: Establish a plan. Nobody gets out of debt by accident. “Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty” (Proverbs 21:5). Get control of your largest wealth building tool, your income. If you are giving away your money for debt, you will be stuck. Figure out ways to keep as much of your income as possible. This is the beginning of wealth.
Some planning strategies include:
- Make a budget. Most people can find an extra $500-$1000 per month. Tell your money where to go before the month begins. Start by tithing and God will bless the remaining 90%. Then plan to make some sacrifices to spend less. Say no to some things. Control your money before it controls you.
- Prioritize your debt. There are a few ways to do this. The Snowball method pays off the smallest debt first. When it is paid off, add the payment you’ve been making to the next smallest debt and so on until your debt is all paid. The Avalanche method pays off the debt with the highest interest rate first.
- Stop adding debt. Stop jumping in the deep end. There are some tricks to this. Delete the saved payment info you have on different apps and sites. Stop financing things you can’t afford. Build an emergency fund of at least $1000. This will prepare you for the next financial crisis so you don’t have to add debt to deal with it. Don’t go out to eat. Skip vacation. These are hard sacrifices but will be worth it when you see how fast you can be financially free.
B: Be disciplined and diligent. “Lazy people want much and get little. Those who work hard will prosper” (Proverbs 13:4). If it is not in the budget or on the list, don’t get it. Embrace delayed gratification. Debt is proof of your buying stuff you can’t afford. Avoid lifestyle inflation. Most people want financial freedom without financial discipline but God can’t bless a mess. When you get a raise, put it toward debt. Don’t buy a new car. Discipline separates dreamers from doers.
T: Take action. Do something with this information. James 2:17 teaches, “Faith without works doesn’t produce.” Do a budget today. List something to sell. Find extra income. Find a side hustle. Start tithing. You want God's blessing and tithing opens the windows of heaven. God blesses obedience.
Being debt free is not a dream; it’s a decision. Are you tired of struggling? Are you sick of debt? Get mad. Stop making excuses. Decide, Establish a plan, Be disciplined and diligent, and Take action. You can break free and live in abundance. God says He’s a “more than enough God”. Step into it. Start today.
