GLORIETA, N.M. (BP)–Getting out of debt is difficult, but not impossible if a step-by-step plan is followed, according to financial expert Larry Burkett.
In his book “How Much Is Enough, 30 Days to Personal Revival,” he recommends the following steps to become debt-free.
1) Commit yourself to the Lord.
2) Begin to tithe.
3) Reevaluate your needs, wants and desires.
a) Delay major purchases.
b) Stay out of the mall.
c) Exercise self-control in every area of your life.
4) Stop charging and cut up your credit cards.
a) Only use credit cards to buy budgeted items.
b) Gain agreement from your spouse before making the purchase.
c) Pay your credit cards off entirely at the end of the month.
d) The first time you’re unable to pay off your credit card bills, cut up the card and don’t use it again.
5) Begin to save.
6) Reduce your food costs.
7) Develop a schedule to repay outstanding debt.
a) Focus on the account that charges the highest rate of interest, yet has the lowest balance due.
b) When the account is paid off, close it, and roll what you were paying on it onto the next account with the highest interest and lowest balance.
c) Continue eliminating one account at a time until each is paid off and closed.
d) This strategy is only effective if you stop making charges on the account.
8) Liquidate small assets.
9) Liquidate large assets in an emergency.
10) It is critical to adopt a stewardship mentality in life.
“How Much Is Enough, 30 Days to Personal Revival” is available from LifeWay Christian Resources of the Southern Baptist Convention by calling 1-800-458-2772.