"The rich rules over the poor, and the borrower is the slave of the lender." Proverbs 22:7
How many of you like the idea of being a slave? Yea, me either! So let's commit to freeing ourselves from debt (with the help of our gracious God of course)!
When I first got married, I had about $800-$900 in credit card debt. I know that doesn't sound like too much, but it would have continued to grow had my husband not CUT UP MY CREDIT CARDS! Yep, he literally took scissors and slicey diceyed them (even the J.Crew!) We were married in August, and because of his diligence, we had them paid off by Christmas. I was an angry angry elf at the time, but boy am I happy now!
So, my very first suggestion to you in getting out of debt is this:
CUT UP YOUR CREDIT CARDS! Seriously, chop chop. Keep one for emergencies, if need be.
Next, work on paying off the smallest card amount first, only paying the minimum on all others. Even if you feel like you're not making a dent, you are. Trust me.
If you have a bulk of money somewhere (we had an investment my grandparents had started for me when I was a wee little thing - I know, more fortunate circumstances), pay off fully what you can. For us, we were able to pay off one (out of the two) school loans we had - about $2000. That felt SO good! If you can do it, do it!
If you have a mortgage, pay attention!
Let's say you have $100,000 mortgage for a loan length of 30 years. Here is what you will save by plunking down an extra $100 a month:
Savings in interest: $62,463.88 (what could you do with an extra $62,000+ ?)
Savings in time: About 10 years (now you only pay for 20 years instead of 30!)
Payments eliminated: 118
Okay, I'm going to leave it at that tonight - you have something to work on! Besides, on Thursday (Mr. Linky - don't forget) you will get some great ideas from others on how to get out of debt! I can't wait to read them!
"Treasures gained by wickedness do not profit, but righteousness delivers from death. The Lord does not let the righteous go hungry, but he thwarts the craving of the wicked. A slack hand causes poverty, but the hand of the diligent makes rich. He who gathers in summer is a prudent son, but he who sleeps in harvest is a son who brings shame." Proverbs 10: 2-5
I really like the way The Message Bible paraphrases verses 4 and 5:
"Sloth makes you poor; diligence brings wealth. Make hay while the sun shines—that's smart; go fishing during harvest—that's stupid." Proverbs 10:4,5 (The Message)