10 Biblical teachings to get out of debt and change your financial life

The Bible's teachings for getting out of debt are a guide for your journey to becoming debt free. The steps are simple, but following them requires commitment and hard work. The goal is that you become absolutely debt free. Because of your particular circumstances, your path out of debt will be unique to you.

10 Biblical teachings to get out of debt

Debt is a financial level in which the sources of income consist of loans contracted with a third party or financial entity. God's perfect will for you, His child who vegetates in debt, is that you be a creditor and not a debtor. 

1. Pray

Ask for the Lord's help and guidance to get rid of debts.

In Kings 4:1-7 a widow was threatened with losing her children to her creditor and she asked Elisha for help. Elisha instructed the widow to borrow many empty jars from her neighbors. The Lord supernaturally multiplied her only possession, a small amount of oil, and as a result, all the jars were filled. She sold the oil and paid her debts to free her children.

The same God who supernaturally provided for the widow is interested in you also being debt-free.

2. Establish a written budget

Romans 13:8 "Let no one owe anything to anyone except to love one another; for whoever loves another has fulfilled the law. 

Use it!

A written budget can help you plan ahead and analyze your spending to help you see where there are areas you can cut back. It is an effective brake on impulse spending.

3. List all your possessions

What can you sell to reduce your debt?

List everything you own - house, car furniture, etc. Evaluate the list to determine if there are possessions you can live without and sell them. You may need to change your perspective on possessions. Think about what you intend to gain - a life free of debt!

4. List all your liabilities

Establish a debt reduction priority.

Many people do not know exactly what they owe. To do this, you need to list your liabilities and include the interest rates that are being charged for each debt. By analyzing the interest rates on each debt, you will find that credit costs vary greatly. Going through this process will also help you establish a debt reduction priority.

5. Create a debt payment schedule for each creditor

Nobody gets out of debt by accident.

You need to make systematic payments and track the process. This will not only help you see what is working, but will also give you a sense of accomplishment in seeing the debt decrease. Decide which debts to pay off first and this should be decided based on these two factors - size and interest rate.

6. Consider earning additional income

Many people have jobs that simply do not produce enough income to meet their needs, even if they spend wisely. Earn additional income without damaging your relationship with the Lord or your family. If you are married, you may need to be creative and find ways to involve the whole family, or find a job that brings the family together rather than separating them. The key is to commit to using that extra income to reduce debt.

7. Don't accumulate new debts!

Deuteronomy 15:6 "The Lord your God will bless you as He has spoken to you, and you will lend to many nations, and not borrow; you will rule over many nations, and they will not rule over you. 

Deuteronomy 28:12 "The Lord will open for you his good treasure, the heavens, to send rain on your land in due season, and to bless all the work of your hands; you will lend to many nations and not borrow. 

Pay for everything with cash. Credit is dangerous. Statistics show that people spend more when they use credit cards. People don't tend to feel that they are spending their own money when they use credit, but the truth is that they are spending their own money, plus some.

8. Be content with what you have

We live in a culture fueled by advertising. Research shows that the more television you watch, the more you spend. The more you look at magazines and catalogs, the more you spend. The more you buy, the more you spend. Limiting these influences has many good benefits, one of which is curbing our spending.

9. Consider a radical change in your lifestyle

Some people have gotten out of debt by selling their house and moving into a smaller one or living with family. Many have downsized their cars and others have temporarily reduced their cost of living until they are debt free.

10. Don't give up!

You can find hundreds of reasons why you should give up or postpone your efforts to get out of debt. Don't give in to this temptation! Remember, getting out of debt is simply hard work, but freedom is worth the struggle.