Managing Debt - Solutions

I did a message in July 2008 as part of the Solutions series called Managing Debt. It was very popular.

Click here for a copy of the basic Resource Book that I handed out.

Click here for copy of Common Errors and Expenses That Lead to Debt.

Click here for copy of Personal Financial Profile (Microsoft Excel spreadsheet)

Click here for useful article Living Without Plastic (Credit Cards).

Here are some of the main points of the message.

Debt is a real issue.
Debt is borrowing from future income to buy now what we cannot afford with current income.

Proverbs 22:7. - “The borrower is a servant to the lender.”

Danger Signs, the Bondage of Debt:

1. Living on credit instead of paying cash.
2. You’re delaying payment or paying the minimum due.
3. Unable to tithe or save.
4. Unable to pay taxes.
5. Extravagant spending.
6. Constantly looking for get rich quick ideas.

Proverbs 21:5. It says, “Hasty speculation brings about poverty, among other things.”

9 steps out of debt bondage.

You didn’t get into debt quickly. You can’t get out of debt quickly.
So as God lowers your debt, He has to raise your character.

1. Commit to becoming debt free now.
Psalm 37:21. “The wicked borrow and never repay.”
“God, I want to do Your will and I need Your power.”
The key is two words - delayed gratification.

2. Start paying God and yourself first.
Deuteronomy 14:23. “The purpose of tithing is to teach you always to put God first in your lives.”

One of the ways to make this happen is to “control your spending”

3. List all that I own and all that I owe.

Proverbs 24:3. It says, “A house is built by wisdom and becomes strong through good sense.”

4. Have a sale.

Ezekiel 20 “Get rid of all of your idols.”

5. Set up a repayment plan.

Pay Off Your Smallest Debt First Plan
Pay Off the Debt that Makes You the Maddest Plan
The Envelope Plan.

6. Decide to do it in half the time.

Luke 18:27 “What is impossible from a human perspective is possible with God.”

7. Add no new debt.
“Don't be obsessed with getting more material things. Be satisfied with what you have. ..” Hebrews 13:5 (MSG)

8. Share my plan with my creditors.

Proverbs 16:7.
“When your ways please the Lord, He will make your enemies into friends.”

9. Stick to it and trust God.

Galatians 6:9 “So don’t get tired of doing what is good. Don’t get discouraged and give up. We will reap a harvest of blessings at the appropriate time.”
For as he thinks in his heart, so is he. Proverbs 23:7 (NKJV)

The two common errors that lead to unmanageable debt are allowing a get-rich-quick mentality to govern decisions and ignoring the advisor that God has given.

The three common expenses that lead to debt are: home purchases, car purchases, and scheduled disasters.