Break the Cycle of Debt

Break the Cycle of Debt

January 25, 2017

"If you frequently have to borrow money from friends or relatives, take out payday loans or cash advances, or use your credit cards to cover your expenses until your next payday, then you're living paycheck to paycheck. According to a 2015 CareerBuilder survey, 61% of workers say they live paycheck to paycheck."   

(How to Stop Living Paycheck to Paycheck,  by LaToya Irby, www.thebalance.com)

So are you living paycheck to paycheck?

Are you spending more than you bring in?

Are you in a cycle of debt that you just can't break?

Although you might take comfort in knowing you are not alone in this regard (one of the 61%), there are ways to get out of that rat-race.

You CAN become debt-free.

Does losing 50 pounds take time?

Does it require a plan?

Does it involve sacrifice?

Is it possible?

Yes.  Yes.  Yes.  And yes.

It is the same with losing debt: it takes time, a plan, and sacrifice. And it is well worth the effort.

Bill and I were in that position for the first part of our marriage. Then we went through Dave Ramsey’s, Financial Peace University where we learned to establish an emergency fund, pay off our debts from smallest to largest, save, and give. If you have the chance to go through that program at your church or elsewhere, it is well worth it. We can proudly say that the only debt we currently have is our home (and it will be paid for soon). We own our cars. We carry no credit card debt. We tithe. We save for retirement. We have put children through college. All because we learned how to make our money do what we wanted it to.

This week I researched some information on the Internet to see what I could uncover about getting out of debt. I found “6 Ways to Break the Cycle of Debt in Your Life.” (Feb 12, 2014, truthinfinancialplanning.com)

1. Turn off your TV.

2. Find cheaper friends.

3. Live beneath your means.

4. Become a saver.

5. Embrace cash.

6. Increase your income and bank the difference

For the full description of each of these, please look up the article. But here is the overall idea.

(1) Besides the fact that much of television programming is mindless, it is financed by advertisements. We are influenced by the ads that we ingest. We are influenced by the lifestyles that are portrayed in the programming. And we spend to acquire what we see.

(2) You’ve heard the saying, “keeping up with the Joneses.” If we find ourselves having to spend to keep up with our friends, then perhaps we need to find more frugal ones.

(3) Spend less than you make.

(4) If saving money is a priority, you will find spending money on insignificant things not so appealing.

(5) If you don’t have the money in hand to purchase something, don’t.

(6) You might need to take on a second or third job to make up the difference for awhile.

I just can’t explain the freedom that comes from dropping that ball and chain called debt. Bill and I are not wealthy by the world’s standards. (Or are we? I guess if 61% of people are in debt up to their ears, then maybe we are.) But we don’t have to worry about what we will do if the water heater goes out or if we have to replace four tires. And that’s pretty cool.

LORD, I know that you want us to be free from the burden of debt so that we can live more fully for you. Guide us to the right tools to help us break the debt cycle. Help us to be better stewards of the provisions you have given us so that we will make you proud.