Living Debt Free in 2015: Advice to the 4 Out of 5 Who Want to Be Free

By Chuck Bentley, CP Guest Contributor Tuesday, January 13, 2015

Saving money/paying off debt typically vies for one of the top three resolutions Americans make for each New Year. The beginning of another year offers a fresh start to achieve our goals, to focus on important milestones we need to reach and a renewed supply of optimism; but not for all.

A recent survey by CreditCard.com found that about one in five Americans don't believe they will ever get out of debt, a conviction that casts a tone of gloom amidst the celebrations and exuberance expressed by those ringing in the year with renewed hope.

But the real story in that survey is that four out of five Americans do believe they can be free – and for some timeless advice for a problem impacting most of us, the Bible offers clear help.

"Know Your Flocks," Proverbs 27:23 – in Bible times, a lot of wealth was tied up in cattle and other livestock, so owners were instructed to pay attention to their assets. For us, we too should take stock of our resources and investments. Just as you can't imagine a shepherd allowing his flock to be attacked by wolves or to starve to death due to lack of paying attention, managing your finances requires that we watch where our money goes. Understanding where your money is going and where you want it to go is a major step toward getting out of debt. Give yourself a financial check up.

"Earn an Honest Living and Save," Proverbs 13:11 – No matter what kind of money you make, start the habit of saving something from all your earnings. Most financial planners will encourage you to save 5 to 10 percent of your income. More important at first than the percentage is the habit of saving. I know a widow who at age 72 was $50,000 in debt with very limited income. She was able to pay off all her debt by simply making a decision to begin saving a small amount of money each month. Today, she is debt free and credits her journey to God's help with learning to save. It's wise to have 3 to 6 months income in savings, but getting started begins one dollar at a time. A savings account will break your habit of falling back on credit cards for emergencies.

"Always Make your Payments," Psalm 37:21 –To pay down debt, the best way is to make minimum payments on most accounts, and then put extra resources toward paying down the highest interest debt first. As you eliminate expensive debts, you can increase your payments to the next most expensive debt until all consumer debt is gone. This Debt Snowball Calculator can help you stay on track. Remember, stop borrowing and start reducing debt to reverse this financial quicksand as quickly as possible in the New Year.

"Reduce Your Dependence on Money," Ecclesiastes 5:10– There's nothing wrong with making a financial plan and building up your resources, but if your security is in money, you'll never have enough. Money is a tool to achieve our God given purpose, but accumulating it is not our purpose in life. Contentment begins with seeing money as our servant and God as our Provider, and serving people, not things. Also, make giving your top priority. I have known many who did not achieve their financial goals until they learned to give first. It breaks the grip of materialism and overspending on ourselves.

"Persevere, Don't Quit," Proverbs 21:5 – You did not get into debt over night and you will not escape it quickly. Small steps of progress that accumulate over time are necessary to achieve most worthwhile financial goals. Start the New Year with a goal and don't let anything distract from continuing until it is completed. The Bible makes it clear that the reward goes to those who are faithful and diligent in small things.

To the one in five who believe they will never be free of debt, I have good news for you. It is possible. Over the many years of working with individuals and families to achieve their personal financial goals, I have seen God move mountains of debt. It takes faith, it takes discipline and hard work, but I have never met anyone who regretted becoming debt free. Don't resign yourself to enslavement to your lenders (Proverbs 22:7). I have seen the prison doors flung open wide time and time again. And let us know how we can help. It can be a Happy New Year.