How to Get Out of Debt

Read Proverbs 22:7. In what sense are we under bondage to the

lender?

What can be done to escape from this unfortunate phenomenon?

If you are in debt, the following outline will help you begin a debt-­

elimination process. The plan is simple. It has a premise and three steps.

The premise is a commitment to God to be faithful in returning His

holy tithe to access His wisdom and blessing. He is eager to bless those

who obey Him.

Step 1 is to declare a moratorium on additional debt: no more credit

spending. If you don’t borrow money, you can’t get into debt. If you

don’t borrow any more money, you can’t get further into debt.

Step 2 is to make a covenant with God that from this point on, as He

blesses, you will pay off your debts as quickly as possible. When God

blesses you financially, use the money to reduce debt—not to purchase

more things. This step is probably the most crucial. When most folks

receive unexpected money, they simply spend it. Don’t; instead apply it

to your debt-reduction plan.

Step 3 is the hands-on practical part. Make a list of all your debts, from

the largest to the smallest, in descending order. For most families, the

home mortgage is at the top of the list, and a credit card or personal debt

is at the bottom. Begin by making at least the minimum payment due on

each of your debts on a monthly basis. Next, double up or increase your

payments in any way you can on the debt at the bottom of the list. You’ll

be happily surprised how quickly you can eliminate that smallest debt.

Then use the money that you were paying on the bottom debt to add to

the basic payment on the next debt as you work your way up the list. As

you eliminate your smaller high-interest debts, you’ll free up a surprising

amount of money to place on the next-higher debts.

God clearly doesn’t want us in debt. Once the covenant is made,

many families find that God blesses them in unexpected ways, and the

debt is reduced faster than they had anticipated. By following these

three simple steps, many families have become debt-free. You can

too! By putting God first, you’ll receive His wisdom and blessing for

manag­ing what He has entrusted to you.

“Let your conduct be without covetousness; be content with such

things as you have. For He Himself has said, ‘I will never leave

you nor forsake you’ ” (Heb. 13:5, NKJV). How could applying

these words greatly help people avoid getting into debt?