Garwood Presbyterian Church

How to Get Out and Stay Out of Debt

Deuteronomy 28:2, 12, 15, 43-44; Psalm 37:21; Proverbs 22:7; Romans 13:8
#3 In "God's Guidelines For Financial Success"

Review: We first learned that "The Foundation For Financial Success" is to transfer all of our money and possessions to God, and then to live as a steward for Him. We next learned that the key to financial success is to live below our income, whatever it is, by using a budget.

1. The Bible Tells Us Not to Go Into Debt
   1. Romans 13:8 said, "Let no debt remain outstanding, . . . ."
      1. The debt spoken about is monetary debt.
   2. Debt comes from disobedience to God, while obedience brings God's blessing of our not having to borrow any money.
      1. Deuteronomy 28:2, 12, 15, 43-44
   3. Borrowing puts you into servitude to your lender.
      1. Proverbs 22:7
      2. Many people are losing their homes to their lenders through foreclosure now.
   4. When we get into debt, we are being wicked and our giving to God and others goes down.
      1. Psalm 37:21
2. Debt Does Not Just Cause Financial Problems, But Emotional and Relational Problems Too
   1. Being in debt can be discouraging and depressing, and cause us to feel like a failure.
      1. It can also cause us to be angry or feel guilty.
   2. Being in debt puts a strain on our marriage and produces tension, arguments, and fights.
      1. If your spouse tends to spend, spend, spend and put you in debt, they may not have a financial problem, but an emotional one.
         1. They may be shopping to feel good and get a high like a drug addict does to cover over an emotional problem, usually of a bad self image and self rejection.
         2. They need emotional counseling, not financial counseling.
      2. Debt can even lead to divorce. More people get divorced because of financial problems than all other reasons combined together.
3. A 7 Step Plan to Get Out of Debt
   1. Pray
      1. Affirming your commitment to get out of debt and asking for God's help to do it.
      2. Focusing on and thanking God for what you have, instead of what you do not have.
   2. Transfer all you have to God's ownership and live as a steward of it for Him.
   3. Accumulate no new debt by living below your income.
      1. Use a budget to help you keep your expenses below your income.
      2. Be willing to change your lifestyle if necessary.
      3. Doing this will eventually keep you out of debt also.
   4. With the money that you are not spending, pay off your debts.
      1. Prioritize what to pay off first. Pay off small debts for the emotional satisfaction of suc-cess. Otherwise, pay off your debts first that have the highest rate of interest on them.
      2. For very high debts, work out a repayment schedule with your creditors.
   5. Sell what you do not really need for additional income.
   6. If necessary, consider how you can earn additional income.
   7. Persevere, because it takes time!

Conclusion: God does not want us to be in debt. It causes financial, emotional, and relational problems. Also, debt almost always comes from selfish living, instead of from Godly giving. If I am in debt, I commit myself to get out of it. _____I do not commit myself. _____