by Art West

Created on: May 19, 2009   Last Updated: August 18, 2010

Proverbs 22:7 says "The rich rules over the poor, and the borrower becomes the lender's slave."

Proverbs 22:26-27 says "Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you."

Ecclesiastes 5:5 says "It is better that you should not vow than that you should vow and not pay."

Romans 13:8 says "Owe nothing to anyone except to love one another; for he who loves his neighbor has fulfilled the law."

Those are just a few of the scriptures that tell you that being in debt is unwise. Most Americans are in debt and should get out of debt. How do you do that? The key is to make a budget and stick to it.

I know the word budget intimidates most people, but it is not that tough. Remember that you are in charge of the budget. You decide what you want to pay and how much. Then when you have made the budget, you MUST follow it. Begin by putting your total net income at the top of a page. Then budget 10% to give to the church or charity. After that budget for food, house payment or rent, utilities, home insurance and property taxes. You are now sure that you have food and shelter covered.

The next step is to budget for transportation. Budget for your car payment, car insurance, license plates and gas. After you have transportation covered, budget for clothing.

You have now budgeted for food, shelter, transportation and clothing. You have all of the necessities covered. You can now begin to pay off your debts. It has been discovered that the most effective way to pay off debt is by paying them smallest to largest. The reason for this is because you have a feeling of accomplishment after you pay off a debt. If you have a $500 debt at 3% interest and a $5,000 debt at 15% interest, pay off the $500. Ignore the interest rate, you will pay off the $500 more quickly and have a feeling of accomplishment and that will encourage you to continue.

As you set up your budget and are paying off your debt, you may have to make some sacrifices. You will not be able to eat out very often if at all. You may have to buy groceries in bulk, look for sales and use coupons. You may have to get your clothes at rummage sales or good will. You also may have to have a rummage sale or temporarily take a part time job.

Your main goal should be to get out of debt as quickly as possible. You can then be in a position to give as it says in Luke 3:11 "And he would answer and say to them, 'The man who has two tunics is to share with him who has none; and he who has food is to do likewise.'"

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