STEP 3

Get Out of Debt – The Borrower Is Slave To The Lender

 

Debt is a Weight Around Your Neck that Holds You Back
You will never be able to move into financial freedom as long as you have the weight of debt holding your back.
Whatever you save or invest is reversed by your debt.
It is better to remove the debt first, then move onto building wealth.

 

Is Debt A Sin?
In the Bible, there is nothing positive written about debt.
It is not mentioned as sin, but there are many cases where it is mentioned as not wise.
In fact God sent Jesus to pay our debt of sin, not to give us a debt!

What power does the lender have over the borrower?

 

Attack Your Debt
The only way to get out of debt, is to get mad at your debt and attack it.
You do not need to save, eat out, or go on holidays, instead use any extra money you have to clear your debts.

 

What Is Debt?
Anything that you did not pay for in full is a form of debt.

 

This may include:

-Credit Cards
-Student Loans
In Japan 40% of graduates have 3M yen or more in student loans or so called “scholarships” that must be repaid.
In the USA 70% of graduates have an average student debt of $30,000 or more.
-Family loans
-Personal loans
-Car loans
-Housing loans

 

What does God say we should do with our debt?

 

Debt Snowball
List your debts smallest to largest by amount owed, without worrying about interest rates.
Pay minimum payments on all of the debts and put any extra money you can squeeze from your budget onto the smallest one.
Once that first debt is paid, you can take the extra payment you were putting toward that debt and attack the next debt on the list.
Once the next one is paid, take that extra payment and start paying extra on the next debt.
You can knock out all your debts one by one with a great sense of momentum like a snowball growing.
The debt snowball is less about math, and more about getting mad at your debt, starting with small victories that lead to great momentum.

 

When Can I Be Debt Free?
To calculate how long until you are debt free, simply divide the total debt amount by your monthly savings.
If you don’t have any extra money or the timeline is too long, you will need to adjust your budget or get a second job.