With home mortgages, school loans, and car loans, young couples today may owe more than $140,000 within the first couple of years of marriage. This may seem normal to many, but God’s Word says debt isn’t normal, especially long-term debt (see Deuteronomy 15:6; Psalm 37:21; Romans 13:8).

Become debt free

If you’re already in debt, you can break the debt cycle with desire, discipline, and time. Using these five basic steps you can become debt free and stay that way.

1. Transfer ownership
   God forces His will on no one; you must willingly surrender your will and possessions to God. Prayerfully transfer ownership of every possession to God – money, job, time, material possessions, family, education, and future earning potential (see Psalm 8:6).
   
   
2. Give the Lord His part
   Once you’ve transferred ownership to God, give Him the first part, the tithe of gross income. If you withhold from God, it indicates that ownership hasn’t been transferred. Give Him freedom to work unobstructed on behalf of your finances – give Him the tithe – and He can give us His best.
   
   
3. Allow no more debt
   Don’t use any more credit or credit cards until all existing debt has been paid. Pay with cash, check, or debit card at the time of purchase. Don’t borrow any more money from institutions, family, or friends until all indebtedness (home mortgage excepted) has been satisfied.
   
   
4. Develop a realistic budget
   You’ll need a written budget that allocates percentages of Net Spendable Income into living expense categories – including repayment of creditors. Write to each creditor with a repayment proposal, but promise only what can be paid every month. Include a financial statement and budget that shows how much will be paid to each creditor.
   
   If you need to generate extra funds by working overtime or on an extra job, all money generated by the extra work must go to eliminate the debt for this to be effective.
   
   
5. Retire the debt
   Pay extra on the debts with the highest interest rates. If all interest rates are comparable, begin paying extra on the smallest balance. After that debt has been paid, apply the regular payment as well as the extra money that was going to it toward the next highest balance. After the second is paid off, then the third highest and so forth.

Conclusion
No one who is financially bound can be spiritually free. Generally speaking, if these steps are faithfully followed, the average family can usually be debt free in about five years.

Accomplishing debt freedom can produce a radical change in lifestyle and a reevaluation of family values that can help prevent similar debt situations from recurring.

Spending is a habit
Does money burn a hole in your pocket? Does buyer’s remorse set in after you have spent your money?

If this sounds familiar, how can you manage your spending so you can buy the things you need now and also save for the things you need in the future?

In order to change spending habits, people must first understand how habits are shaped and the ways spending behavior can be changed.

In essence, they must identify spending leaks that give immediate satisfaction but do not help reach financial goals and, instead, substitute desirable spending behavior that may not be immediately gratifying but will allow financial goals to be reached.

How to change the habit
Luke 16:11 says, “Therefore if you have not been faithful in the use of unrighteous wealth, who will entrust the true riches to you?”

People need to learn to handle the smallest thing God has put under their authority—their money. Therefore, if the following guidelines are followed it should help them control spending.

1. Establish self-discipline. Put all spending under God's control. In so doing, individuals become managers of God’s finances and all spending should then be from the vantage point of whether He would be pleased with the purchase. With God’s guidance, any bad habit can be broken.
   
   People need to learn to recognize the drive that places them in a difficult spending situation. When they shop, they can avoid the spending pitfalls produced by that drive by having a purpose for the shopping, a time limit, and a written plan.
   
   Hence, they need to make a list before they go shopping and then stick to it.
   
   In addition, they should limit the number of trips to the store or mall and never shop when hungry or depressed.
2. How far money goes usually depends on how badly people want something. As such, they need to be in control of the money, under God’s direction, instead of having the money control them by limiting what they do.
   
   Once spending has been brought under control, there should be a determination of how much needs to be spent each month in every area of an implemented budget; and, since the basic idea behind budgeting is to save money up front for both known and unknown expenses, there must be a commitment to stick to the budget.
   
   If people are having difficulty with income equaling outgo, they need to cut some of their outgo. As such, they should look at their budgets realistically and see where they can start trimming.
   
   A budget is a money plan. With it, people can organize and control their financial resources, set and realize goals, and decide in advance how money will work for the good of the family.
   
   Therefore, because every purchase should be considered in light of the established budget, buying any non-budgeted items on impulse should be avoided, especially if those non-budgeted items will need to be purchased with a credit card.
3. People need to be accountable to other persons for a specified period of time for everything they spend. Ecclesiastes 4:9,10 says, “Two are better than one because they have a good return for their labor. For if either of them falls, the one will lift up his companion. But woe to the one who falls when there is not another to lift him up.”
   
   If there is accountability, people will be more inclined to be cautious in their spending habits—a look now, buy later attitude.
   
   So, shop around before buying and learn to say no. Keep a record of spending and purchases and share these with the accountability partner.
4. Establish a want-to-buy list. Whenever people feel they need to buy something that is not budgeted, they should put it on the list. They should wait seven days and find two additional prices for the same item, to be sure they are getting a good buy.
   
   If they still want the item after a week has passed, they will have thought about it and probably will be getting the best buy on the item. However, they still should not charge it.
   
   Finally, people can have only one item on the list at a time, so if they find new “wants” during the week, they will have to decide between the two.

Conclusion
A good way to reduce debt is to develop discipline in spending habits. That may include taking away any security that might be used in case of emergencies: credit cards or other avenues of borrowing.

By committing not to go further in debt, people begin to reverse the process that produced the debt. Then, they can develop a balanced budget that will control spending and will allow them to stay within the parameters of their financial means.

Debt

No one who is financially bound can be spiritually free, and the effect of debt on marriage is evident in the statistics of failed marriages. Being debt free is still God’s plan for His people.

What is debt?

Credit

• Establish – Today, almost anyone qualifies for a credit card, although the limit may be the minimum.
  
  
• Cancel – To cancel a credit card, the account must not be delinquent. Send a letter to the issuing bank and request that your account be cancelled. Credit cards belong to the issuing bank, so cut the cards in half and return them with your letter.

• Ignorance. Most people aren’t trained to handle money. Today’s attitude is: If you want it, get it, you deserve it – if you haven’t the money, charge it.
  
  
• Indulgence. Americans tend to feel that we should get what we want, when we want it, and the concept of saving to buy something seems an alien concept.
  
  
• Poor planning. Without a written plan that measures and monitors income versus expense, you’ll eventually find yourself having financial troubles.

• Give to God first. Your first commitment should be the tithe from your gross income.
  
  
• Stop borrowing. This means credit cards, loans from banks or family – all consumer credit.
  
  
• Develop a balanced budget. A balanced budget is the primary tool for managing family money.
  
  
• Develop a pay-back plan with creditors. Most will work with those who want to repay them.
  
  
• Learn to trust God. God knows what you need, so begin to trust Him – wait for God’s provision.
  
  
• Exercise self-discipline. Curb impulses to buy. If it isn’t budgeted, don’t buy it.
  
  
• Seek wise counsel. You may require help to establish and maintain a budget and work with creditors.
  
  
• Rely on God’s Word. Base financial decisions on the principles of God’s Word, not the world’s advice.

If you are in debt, you’re bound to creditors and not free to serve God to the utmost. Decide now to get out of debt and stay out. With God’s help and your discipline, you can become debt free and stay that way.