Debt-Free Living

WEEKLY DEVOTIONAL BY PATRICE TSAGUE

Do you know that the borrower is a slave to the lender? How would you like to be completely free from debt? What are the dangers of debt?

Let’s explore this topic together in today’s devotional:

“Then she came and told the man of God. And he said, ‘Go, sell the oil and pay your debt; and you and your sons live on the rest.’” – 2 Kings 4:7 (NKJV)

The miracle of 2 Kings 4 is not only that God multiplied the oil, but that the Prophet Elijah was able to coach a bankrupt widow to become completely debt-free under very difficult circumstances. If this widow under these circumstances can realize debt-free living, so can you and I.

Here is an excerpt from Art Ally’s book, Invested with Purpose about the danger of debt:  

“Debt is the enemy of a purposeful life. It robs us of our margin, holds us back from our passion and threatens our loyalty to God. In fact, debt may well pose the greatest threat to Biblical Entrepreneurs.”

Here are some of the consequences of a debt-laden lifestyle:

• Debt lingers
• Debt causes worry and stress
• Debt causes the denial of reality
• Debt leads to dishonesty
• Debt is addictive
• Debt is presumptuous
• Debt deprives God of the chance to say no or to provide through a better means
• Debt is a major loss of opportunity
• Debt ties up resources, making them unavailable for the Kingdom of God

So then how can we experience debt-free living? Here is our guide to budgeting to ensure that you are debt-free:

You must strive to live on no more than 55% of your after-tax income. A sound break-down of your income is as follows:  

10% Tithe

5 % Offering and Alms

10 % Savings

20% Debt or Major Purchase Savings

55% Living Expenses

What if you are already in debt? What do you do?  

The steps to repaying your debt are very simple as well:

1. Develop your debt-free plan. You may need to consult someone with more experience and expertise to help you do this.
2. Set aside 20% of your income toward debt repayment.
3. Make arrangements with your creditors to fit within that percentage.
4. Aggressively pay off the debt with high interest first. Mortgages and student loans typically have lower interest rates than credit cards. Get rid of your more expensive debt first.
5. Commit all extra money toward debt payments. Every luxury in which you indulge only delays your financial victory.
6. Once a debt is paid off, make sure that it is removed from your credit report. This may take repeated phone calls and faxes. Stick with it! It is very important to your long-term financial success.  
7. Once your debt is paid, use the 20% you had been allotting to invest for retirement, save for your children’s education, bless others, or make other major purchases.

No matter your current circumstances, like the widow, act in faith and begin your journey toward debt-free living and before you know it, your goal will be realized. God is no respecter of persons, if He did it for the widow, He can do it for you too.

My prayer for you is that God will give you the grace to live within your means and the wisdom to experience debt-free living so that you can be free to serve and worship Him without constraint.