Getting & Staying out of Debt

BEFORE YOU START…

PRAY – You need a change of heart and God’s help!
NO NEW DEBT – You must commit to occurring NO NEW DEBT
SAVE – You need an Emergency Savings Fund to stop the cycle of always turning to DEBT when ‘LIFE’ happens
GIVE – Generosity breaks the hold that debt/money has on us & roots out selfishness
SHARE – Tell a trusted person to keep you accountable & encourage you as you go

CREATE YOUR DEBT LISTING

List your creditors, your current balances, your minimum payments, and your current interest rates.
- Snowball Method – list your debts smallest balance to largest balance (provides tangible benefits/incentives as debts are paid off sooner)
- Avalanche Method – list your debts highest interest rate to lowest interest rate (saves some interest, but takes longer to see the first debt paid)
- Consolidation Method – consolidates all debt into one loan with lower interest rate (should be considered, but does not change the heart/habit of what got people into debt and can dangerously use up equity in home)