Posted by: prosperingchristians | May 1, 2011

Paying Down Your Debt


Most people are aware that Americans have too much debt and God desires that each one eliminate their debts. We have talked about eliminating debt in the past, including taking on another job and getting additional training to prepare yourself for promotion. Since you are already tithing, the other thing that you can do to reduce your debt would be to create an organized method of reducing the outstanding balances on your loans.

This may sound like too much to do, but if you organize your debt and really work at developing a system to reduce it, you will relieve yourself of unnecessary stress. The first step would be to gather all of your installment loans, credit card debt, mortgage, and any other payments that are outstanding. List the lower balances first and then progress to the higher balances.

The plan would be to pay off the smaller ones first, one by one. As you succeed in paying them off, you will feel like you are actively taking steps to reduce your debt, which you are. Follow this plan until each one is paid off. If you can make more than the minimum payment on them, you will save yourself more money in interest which you will not have to pay in the future.

If you follow this system, you will save money and pay off your balances. At the end of the year, some of your creditors may offer you a discount for paying the bill in full. Sometimes the discount is as much as fifty percent. By all means, take advantage of this offer, if you are able to do so.

While you are paying off your debt, it would be a good idea to set aside some money in a savings account for emergencies, even if it is just five or ten dollars a month. Make a promise to yourself not to use the credit card unless you can pay off the balance in the same month. If you are in business, increase your income goals to exceed your needs. In time, you will be able to increase this amount.

Romans 13:8 says, “Owe no man anything, but to love one another, for he that loveth another hath fulfilled the law.”

Psalm 37:21 says, “The wick borroweth and payeth not again: but the righteous showeth mercy and giveth.”

May God bless you as you take steps to reduce your debt.

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