Freedom from Debt

Steps to gaining control and eliminating debt.

The Lord will open for you His good storehouse, the heavens, to give rain to your land in its season and to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow.
—Deuteronomy 28:12

In today’s society, we are encouraged to borrow in order to increase our buying power.  Even companies are encouraged to use borrowed money to increase profit margins.  However, in the word of God, borrowing is never accepted as a way to increase possessions or wealth.  God promises He will bless us to give and lend; but He warns us not borrow, but to share, save and to control our spending. 

Our world is in the midst of a debt crisis.  Portugal, Italy, Greece and Spain are struggling with more debt than they can repay.  The United States has more money going out than we have income coming in.  Debt is crippling our world and destroying our families.  Therefore, I would like to suggest that you give yourself and your children the gift of “Debt Freedom”.

If you desire to avoid getting further into debt and to start getting out of debt, start by working the steps listed below:

  1. Start to live by God’s vision for your life - Commit to praying to have God’s vision for your life revealed to you and live by it.  I’m a firm believer that understanding our purpose helps us to not let creditors cause us to live their vision of accruing debt, but rather God’s specific vision for us.
  2. Start to live by a Budget – Track and Plan your expenses.  Before going shopping, make a list, and budget a specific amount of money to spend. Avoid using credit and pay cash for everything.   Avoid impulse buying, if what you see is not on your list, leave it.
  3. Inventory your credit cards. (Examples given in detail on next page)
  4. Cut up your credit cards.
  5. Start paying off the balances.  (Examples given in detail on next page)
  6. After ALL balances are paid.  Send a certified letter to your creditors requesting them to close your account, and specifically note on the account “Closed at account owner’s request”.
  7. Opt out for pre-approved offers for credit by calling toll-free 1-888-567-8688 or visit
  8. Clean-up your credit -Check your credit report to make sure there are no outstanding loans.

Here is an illustration of how to eliminate your debt 5 times as fast as normal, without taking out a home equity loan or switching your credit cards between low interest rate cards.

Here is a family with $11,105 worth of revolving debt.  They have 10 credit cards on which they pay an average interest rate of 17.27% and a monthly payment of $444.  Based on the credit lender methodology it would take 11 years and 10 months to payoff this debt.  Also, the creditors would receive $5,796 in interest from the family during the length of the credit.  Borrowing money is not what God wants a family to do.  Let me show you how to eliminate this debt 5 times as fast and how to save $3,200 in interest payments.

First sit down with your family and determine how much more per month the family can add to the credit card payments.  Let’s say that you determine that $25 extra per month can be added.  So your total payments will be $444 plus $25 which is $469 per month.  Now here is an important step, I want you to freeze the payments at $469 per month until all the debts are paid off.  In other words as you do your budget each month, the credit cards payments will be $469 per month until the last debt is paid-off.  Next, you need to determine the lowest balance debt and add $25 to its payment.  In the illustration given, you will add $25 to the $13 payment for Discover Card with a balance of $325.  You will keep paying $38 until Discover is paid off.  Then you will take the $38 payment and add it to the next highest balance which is Citi Platinum MC with a $20 payment.   The new payment will be $58 to Citi Platinum, until it is paid off.  The next credit card that you will attack is Toys R Us Visa with a payment of $22.  When you add $58 to the payment of $22, you get $80 which is the new payment that you will send to Toys R Us Visa.  You will keep using the “smallest to largest balance” methodology to pay each credit card balance off, until you are debt free.  By resolving to be debt free, it will take you 2 years and 7 months to payoff your credit cards.

It is a biblical fact that God desires for every family to be debt free.  Give your family the gift Of “Debt Freedom.”  I guarantee that this will be their best gift ever.  Let me know if I can serve you as you strive to become debt free and live God’s vision for your life.