Debt is in direct opposition to the life that God wants for you and for me. Our loving Father wants nothing less than a joyful, prosperous life for us. -Conrad Morgan

Conquer2016_DebtBlog

Have you ever been worried about making the payments on your debt? Have you ever had tension in your marriage because of financial struggles? Feel like you’re just not making any headway in your debt payments? Interest charges crippling you?

If any or all of the above questions apply to your life, then you’re like many of us who have struggled financially in one way or another. Debt is a powerful force that can overcome your life, enslave you and cause unneeded stress and worry that over time will surely break you down (see Proverbs 22:7). Debt is in direct opposition to the life that God wants for you and for me. Our loving Father wants nothing less than a joyful, prosperous life for us (see Jeremiah 29:11.)

There are many reasons why we justify going into debt and there are more ways than described here to pay off debt. Below are a few for each category.

3 things that lead to Debt

 1) The lack of, or execution of, a budget

One of the leading causes of debt is the lack of planning and executing to that plan.

“If you aim at nothing, you’ll hit it every time!” – Zig Ziglar

2) Desire for instant gratification

If I can just get this now, I’ll be happy! Our inner child causes us to buy things NOW instead of diligently saving and buying it later.

In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. –Proverbs 21:20 (NIV)

3) Feelings of “Deserving”

“I work hard. I deserve this.” You only deserve something if you’ve planned and saved up for it and can pay cash!

3 steps to begin your journey towards debt-free living

1) CREATE AND EXECUTE A BUDGET!

In order to be financially stable, it is critical for you to create and execute a budget. A budget is not a retrospective look at what you spent your money on and where you spent your money. While looking back to see what you’re spending your money on is a good thing to do and something you should do in tandem with a budget, it is NOT a budget. A budget is a written plan for FUTURE expected income. Budgeting is also not a one-time exercise. It is, at minimum, a monthly exercise that is done on paper, on purpose, every month, BEFORE the month begins. Each dollar that is brought into your home should have an assignment otherwise it will find a way to wander off and leave you wondering where it went. Creating and living on a budget is extremely freeing and empowering. It will give you a great sense of control over your money.

“Children do what feels good. Adults devise a plan and follow it.” – Dave Ramsey

For more information on budgeting, please see Dave Ramsey | How To Budget

2) Use a debt snowball approach to paying off debt

How do you eat an elephant? One bite at a time.

Regardless of the amount of debt you are experiencing, if you stay moving, one step at a time, you will achieve your goal.

The debt snowball method is simple and is the most effective way to tackle your debt. Start by listing your debts smallest to largest. Make the minimum payments on all debts and put any extra money from your budget into paying off the smallest debt first. Take the money that you were paying on the smallest debt and add that amount to the next smallest debt each month until it is paid off. Continue this until all debts are paid. This method is so effective because it gives you small wins over time that keep you focused and encouraged.

When speaking of debt the Word says to “…deliver yourself like a gazelle from the hand of the hunter, and like a bird from the hand of the fowler” (Proverbs 6:4-5). Be “gazelle” intense during your debt snowball.

The rich rules over the poor, and the borrower is servant to the lender. –Proverbs 22:7 (NKJV)

For more information on the debt snowball method, please see Dave Ramsey | Snowball Method

3) Most importantly, trust and love God above all else

No matter how bad your financial situation is, God is bigger! While doing the steps above are great things you can do to move the needle in your finances, the most important thing you can do is love God and trust that He will provide for your needs.

No matter where you are in your financial world or how young or old you are, it is never too late to begin taking ownership over your money and changing your habits for the better. If you have not attended Dave Ramsey’s Financial Peace University through Small Groups, I encourage you to do so as soon as possible.

If you have any questions or would like more information regarding budgeting, debt snowball, or any other area of finances, feel free to reach out to me directly at financial.peace@icloud.com.

“Hi, my name is Conrad and I like stuff.”
Conrad Morgan is a non-saving, heavy spending individual turned man-with-a-plan. He spent many years living in crushing debt and has since turned to living and working toward a debt-free life using the tools and knowledge learned in Finance Peace University.