Tuesday: 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.
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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 one 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 two 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 three 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 on 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.’ ” (Hebrews 13:5, NKJV). How could applying these words greatly help people avoid getting into debt? |
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I am glad that the Sabbath School lesson study has opened up the discussion on debt management. My guess is that debt-sickness is possibly as pervasive as health issues.
While Seventh-day Adventists have a strong health message encouraging us to eat the right foods, exercise, rest and so on, we also recognize that sometimes we need to resort to medical advice, hospitalization and even surgery to restore our health. Accidents happen, and we are not all born with strong healthy constitutions. Sometimes we need to seek help.
Likewise, in our financial affairs, we can pray about them, and seek the guidance of the Holy Spirit, but sometimes, in the end, we need to get help and good advice from the experts. If you are in debt it is highly likely that you are going to need help. Expert help is available and often it is free. Locally I know that ADRA provides debt management services for those that need it. They are not going to pay your bills for you, but they will map out a pathway for you to move out of the dangerous debt zone.
On a closely related topic, in a society such as ours, most of us retire from work in our 60s and our income is limited to superannuation, pensions, and so on. Most of us have to look forward to 20-30 years where our income is from a source other than our career. I know that some folk in my parents' generation thought the Lord would come before they grew old and that it was a lack of faith to make plans for retirement. Unfortunately, some of those folk fell into hard times in their old age and had to leave it to others for their support.
Dare I say it in this forum, that retirement planning is something we do need to consider? I'm retired and I am managing to survive, but I don't want to fall into a debt situation that I have to pass on to my children as their inheritance. I am very glad that I sought financial advice well before I retired (I wish I had taken it earlier - but that is another story,)
I have heard a lot of advice like, "The Lord will provide", and "God will take care of you", and so on. Sometimes the Holy Spirit is saying to us that we need to get off our backsides and seek appropriate help and advice from knowledgeable people.
You mentioned you don't want to pass on a debt to your children. Well in our country (Canada) our government is doing so, they have added to the beatitudes. "Blessed are the young for they shall inherit the national debt."
Yes, that is a serious problem. National and international debt is a serious problem. And much of the strategy for handling it appears to be smoke and mirrors. I’m not an economist but when I see governments voting to increase their national indebtedness one wonders where it will all end.
Today's lesson points to some very important and practical issues regarding debts. It is essential to talk about spiritual things, but I am not only spiritual, I need to take care of my physical and emotional sides too. The way I spend my money may reflect what I value the most. I'd love to buy a lot of things, and visit a whole lot more places and people, but I do not always have the means for it. Learning to live happily with what I have, and not getting into debt just to satisfy the ego is also part of a lifestyle and religion. Hopefully, the only and eternal debt we will never get rid of is what God did for us, through His Son Jesus - in this case, all that we need to do is to accept His sacrifice for us, and demonstrate this by letting Him have the control of every aspect of our lives.
Money and wealth are not evil. Much good is done within the Church and around the world with money and wealth. God does not want us to live in poverty to serve Him. Poverty limits our means. It is OK to be successful, even rich in wealth.
As in all things, He wants us to be good stewards of what He provides for us and remember where it all comes from by being faithful with our tithe and offering.
Amen, Jim Williams. Even from the very start of The Bible, in making claims about God giving His people "Power to get wealth," Deuteronomy 8:18, I see nothing wrong in seeking God for this very thing. But then, Jesus Himself counselled us to "Seek His Kingdom and His Righteousness," first. I think that there tends to be a condemning idea to even seek wealth, by our spiritual leaders, and that is why so many of God's own people are so poor and needy, and even destitute.
A key component of debt reduction is missed in the lesson today -- increasing income. The reality is that expenses do outweigh income and that leads to debt. Not frivolous expenses at the time, necessities of life; and with inflation and unplanned events debts are created.
Increasing income in various forms and different streams is important.
You can cut expenses by so much, and no more, at times.
I was raised old-school - no cash, no purchase. Living frugal seems to have been lost in this modern era of consumerism. The three steps advising how to get out of debt are logical to me; it is the model I follow. What I never do, though, is charge to my credit cards more than I can pay off at the end of the billing cycle.
I suggest to add one more crucial step to help stay solvent - saving and setting aside three, if possible, or even six months of basic, monthly expenses. This 'cushion' comes into play only when unforeseen circumstances disrupt the basic monthly income. Some creative people buy into investing in stocks to bolster their financial picture. I hold to setting aside extra savings which come in handy when purchasing costly items by reducing the amount one might need to borrow.
My main focus also includes maintaining a good credit rating which establishes one as a valued customer by banks. Even though banks do not earn income from me through interest charges, they respect my ability to manage my financial obligations and reward me with a good credit rating. 😊
The premise I base my life on is being an all-around good steward as I live in God's kingdom here on earth. The idea of becoming the servant to any lender is repugnant to me; I do not want to owe anyone. To meet my obligations to fulfil someone else's fiscal demands, tied to interest, diminishes my ability to give and live freely. This is also applicable in the interaction with others - Rom. 13:7-8.
I experienced great relief when I decided to follow godly guidance for all aspects of my living. For me, God’s true blessing became my happiness when following His Light, being able to be a caring steward as wife, parent, and friend.