How to Live Debt Free (Episode 8)
“A Biblical Perspective on Debt” by Focus on the Family:
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The Bible doesn’t say it’s a sin to borrow.
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It doesn’t say it’s wise to borrow.
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It doesn’t say God will bail you out of debt.
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It doesn’t say debt is an exercise in faith.
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It doesn’t say it’s a sin to loan money.
What does the Bible have to say about debt?
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It’s wrong not to repay debts.
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It’s foolish to put yourself in a surety situation.
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Debt may violate biblical principles that directly affect our relationship with God.
What do you do if you find yourself in any kind of consumer debt?
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Pray and wait on the Lord for an answer.
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Follow a proven debt elimination plan (See: Financial Peace Revisited for more information.)
Baby Step 1: Make every effort to get $1,000 in your emergency savings fund.
Baby Step 2: Pay off all personal debt except your home.
Baby Step 3: Save 3-6 months of worth of expenses in your emergency fund.
How to keep from getting back into debt:
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Be content with what you have.
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Pray before any major purchase
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Maintain a zero balance on all credit cards, or don’t use them at all.
Recommended Course: Financial Peace University
This was a financial life-changer for us as we raised our five children. To this day, we have no consumer debt, no student loans, and no car loans–just our mortgage.
Recommended Book: Financial Peace Revisited
Purchase this book if you are unable to attend the course.
All 7 “baby steps” are in chapter 21, then you’ll find some financial management forms in the back of the book.
Other Financial Articles by Stewardship and Romance
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How to Live Debt Free (detailed notes)
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