Dissatisfaction leads to unnecessary purchases and increasing debt. Discover God’s principles for decreasing debt and living in financial freedom.

Solomon on Debt

Prov. 11:15 – If someone puts up security for a stranger, he will suffer for it, but the one who hates such agreements is protected.
Prov. 17:18 – One without sense enters an agreement and puts up security for his friend.
Prov. 22:7 – The rich rule over the poor, and the borrower is a slave to the lender.
Prov. 22:26-27 – Don’t be one of those who enter agreements, who put up security for loans. If you have nothing with which to pay, even your bed will be taken from under you.
Prov. 27:13 – Take his garment, for he has put up security for a stranger; get collateral if it is for foreigners.
Prov. 28:25 – A greedy person stirs up conflict, but whoever trusts in the Lord will prosper.

Problems with Debt

Elevated Cost – Debt seeks to secure our happiness now by committing to pay more for it later.
Symptomatic Problem – Increasing debt indicates that there is potentially something dangerously discontent within you.
Interest Rates – Incurring high interest rates now means you have less money to spend in the future.
Minimum Payments – If a company can lock you into paying the minimum requirement, they benefit the maximum amount.
Depreciating Value – Most purchases depreciate, which can lead to owing more than what something is worth.
Relational Burden – Debt can create tension within a family and increase one’s probability of being a burden on others.

Home Mortgage – It is financially unwise to have a mortgage payment of more than 25% of your take-home pay.
Car Loan – Since a car significantly depreciates in value, it is best to avoid a car loan if possible.
Student Loan – Only incur a student loan if the degree and school are necessary for an unwavering career path.
Credit Cards – Reconsider if you really need something that you don’t have the money for right now.

Create an intentional and persistent plant to eliminate all debt.
Avoid going into further debt by fighting for contentment and creating a budget.
Utilize the debt snowball approach to reduce your existing debt.

If you paid the minimum, you would maintain these debts for 10 years and 10 months.
If you had an extra $500 each month, you could pay off all of your debt in 27 months.
Pay off the medical bill in 1st month.
Pay off credit card debt at $613 a month in 4 months.
Pay off the car loan at $748 a month in 10 months.
Pay off student loans at $844 in 12 months.
You would pay off $20,000 of debt in only 27 months.
Then, you have $844 unrestricted money every month.