Faith-Based Finances

Steps to Get Out of Debt

Admit it, you’re in debt.
Admit it, you have a problem.
Stop using the credit card, except for “true” emergencies.
Keep only one or two cards.
Think of your total debt. Don’t just look at your monthly payments.
Use low cost debt to pay off high cost debt.
Pay off low balance accounts.
Don’t consolidate or home equitize your debt.
Calculate your yearly interest costs. Plan what you will do with this money when you are out of debt.
Repair, don’t replace cars, appliances, and household items.
Wear it all the way out before you buy new.
Seek counseling.
Call your creditors – ask for lower interest rates or an abatement of interest.
Stay away from shopping.
Buy second hand before you buy first hand.
If you can’t pay for it this month, don’t buy it.
Forget the Jones’. Don’t try and keep up with them.
Stop buying gifts on credit. Especially at Christmas.
Double, double, double those payments.
Keep on making car payments, even after it’s paid for. Make the payments to your “next car fund.”
Envision living debt free with no bills in the mail.
Buy with the green, touch, feel and look at every little dollar you spend. Avoid using big bills, use dollars.
Try a temporary second job.
Borrow from your parents, at a lower interest rate. Then give them the credit cards to hold.