In this article, let me show you several proven and effective ways to get out of debt. These are not a pie-in-the-sky theories but a workable solutions that you can apply right away if you want to be debt free or if you want to debt proof your life forever.
Let’s begin with this Biblical principle:
The Lord will open the heavens, the storehouse of his bounty, to send rain on your land in season and to bless all the work of your hands. You will lend to many nations but will borrow from none. – Dt. 28:12
There are several key points here:
God has storehouse of bounty
Debt is not just a financial issue. It’s more of a spiritual issue.
You see, God has provided you and I a storehouse of blessings. You just have to claim it for yourself.
Are you regularly walking into God’s storehouse of blessings for all that you need?
If your answer is no, then wonder no more why you are in debt. You are not claiming what is in store for you by God. God is a God of abundance. You must have an Abundance Mindset and not a Poverty Mindset to get out debt.
Having an Abundance Mindset is the way to walk into God’s storehouse of blessings for all that you need.
Try it! It really works.
God will send rain in your land
Did you see that? It says God will give you rain of blessings. As I said earlier, He is a God of Abundance. It’s in His nature to give you an outpouring of blessings.
But the problem is, are you catching the rain of God’s blessings or are you just letting them fall to the ground?
You see, there are season of rain and season of not raining.
When it’s the season of rain, you must have a strategy to catch and value the blessings coming to you.
Don’t waste it so when it’s not a season of raining, you have something to rely from. God wants you to be his good steward in taking care of His blessings.
If you are not catching the rain of God’s blessings when He send you the rain, then don’t be surprised that when it’s a season of not raining, you’ll have to borrow from others and be in debt.
God will bless the work of your hands
If you look closely, God has reveal to you how He will bless you. It’s through the work of your hands.
It’s not from winning the lottery, joining those get-rich-quick schemes, etc. He will bless you by you working out on the right stuff. You need discernment on this. Don’t let greed influence you so you will see how God is blessing you.
You will lend to many and borrow from no one
What a promise. Imagine being debt free and you are the one lending to many.
“Lending” here can be likened to “investing”. Through investing, you let others have a capital for their business so they will grow. In short, you are partnering with them.
I will get on this in my future article.
Ways To Get Out Of Debt
Commit to becoming debt free now
The wicked borrow and never repay – Psalm 37:21
Paying debt is not just a financial issue. It’s a spiritual issue.
It’s a commitment to your God. Period.
God loves you and He wants you to be out of debt. Commit to pay your debt no matter what.
You don’t just owe your creditor. You owe God in honoring your debt to others.
List down your debts with specific amount and interest
I know it’s hard at first. Many people in debt suffers from amnesia when it comes to their debts.
Because they are in denial. Instead of confronting the problem, they choose to run away from it.
And running doesn’t solve anything. It just worsen it.
When you list down your debts, the problem you have will become crystal clear to you. You will be then in a position to face it squarely.
Set up a repayment plan
You can get into debt accidentally, but you are not going to get out of debt accidentally.
You have to be intentional about paying your debt
Here are several suggestions on how to do it:
* Pay off the debt that makes you the maddest plan.
Look at your debts. Identify the debts that makes you feel very uncomfortable emotionally. Those are the debts that will drag you down and many financial experts suggest that you deal with them first. Why?
It’s because you can free your emotion and energy so you can concentrate on your other debts.
* Snowball Plan
Dave Ramsey suggests that you take baby steps in your repayment plan.
Look out each debt separately and pay down the smallest first with any extra money that you have while paying the minimum on the other debts.
By doing this, you build momentum. The hardest thing for a person in debt is to act right away.
By having the satisfaction of paying the smallest debt first, you will feel confidence in taking little by little a much higher debt. It’s really a snowball effect. Pretty soon the snowball will be an avalanche that will force you to be out of debt.
* Laddering Plan
Pay your biggest debt right away while paying the minimal amount on your other debts. This helps you feel you are in control of your debts.
Many of those in debts have the erroneous thinking that they are powerless. By doing this Laddering Plan, they feel right away that after all, they can do it.
It really starts with conditioning your mind that you can do it.
* Talk to your creditors
Who are your creditors?
Creditors are people you are trying to hide from. Nothing makes them madder than being ignored.
You must sit down with your creditors and discuss with them on how you can settle your debts.
Be honest. If you want, you can ask them to stop charging the monthly interest of your debt so you can concentrate in paying the principal.
You can also discuss with them in restructuring your debt or maybe asking for a lower interest rate.
Creditors simply want to get paid, and oftentimes they will be logical enough to compromise with you so you can pay off your debt.
When your ways please the lord, he will make your enemies into friends. – Prov. 16:7
Make your creditors to be your friends by talking with them. It’s as simple as that.
* Add no new debt
Once you set up your chosen strategy to pay off your debt, don’t add new debt so you won’t be buried again in debt.
But how do you get away from ever borrowing again?
Follow the Cardinal Virtue of Finance:
Spend less from what you earn and invest the difference.
Why do that?
Because it frees you the money so you can pay off your debts.
So simple, isn’t it?
But you may ask, how do you spend less when what you are receiving is not enough?
Some Practical Suggestions On How To Spend Less
* Grocery Shopping
Only the wife should go grocery shopping. By following this suggestion, only one person is in control as to what is to buy. Of course, before shopping, husband and wife should discuss with one another the needs of the family.
Stick to your list. We are all impulsive buyer. By sticking to the list, it gives you control with your spending. Besides a list is well thought off.
Never use credit card. Many persons have a false sense of power in using credit card. They think that sky is the limit when using it. By using cash, they will feel right away the resources they have and stick with them.
Never bring your children or your husband with you. The logic behind is for you to have control when you are buying things instead of having someone with you asking you to buy this or that right there in the grocery store. Besides for women, shopping is an experience. They love it. For men, it’s a task. So men want to finish the task right away when you are with them. Result? It’s a disaster in your shopping if you are with them.
Always compare your bills with that of last month’s. You have to monitor it so you can do to some cost cutting.
If you are a cable subscriber, you can choose only the TV channels you need. Go for a lower subscription plan because you really don’t need all the channels, right?
Use Prepaid Service in your Cellphone. Unless you have a business and many contacts that you have to communicate with daily, you can save a lot by using a prepaid service. Again only subscribe to those things you really need.
Use LED lights. This kind of lights will save you a lot in the long run. It has been proven to be cost effective in your electric bill.
Do not buy clothes when you need it because it might be very expensive then.
Buy clothes during sales and off season.
Buy clothes you need, not the brand.
To help you think more creatively on how you can lower your expenses to pay off your debts, you may want to answer some questions yourself:
Do you drink soft drinks?
Do you smoke?
Do you eat merienda?
Are your kids studying in expensive school?
Do you buy branded clothes?
Do you have more than 1 cellphone?
I think you get the idea, right?
Do these savings tips to save you a lot of money. The money you save can be used right away to pay off your debts.
If you look out your expenses, these are little things that get you into debt.
Remember the Saver’s Principle
Little + Little + Little = A Lot
Let me leave you with this:
The borrower is the slave of the lender – Prov. 22:7
Don’t be a slave anymore. God loves you and want you to be debt free.
May you experience His blessings in your life.
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