Debt is slavery. For most of us, life is about dragging ourselves out of bed and go to work. Many Americans have a mortgage, a car payment, credit card bills, student loans, and other financial obligations. If we don’t go to work and don’t keep earning money, we are at risk of financial ruin.
America is a nation in debt. More than 189 million Americans have credit cards. The average credit card consumer has at least four cards. On average, every American household with a credit card carries around $8,400 in credit card debt. The total U.S. consumer debt is at almost $14 trillion. This includes mortgages, auto loans, credit cards, consumer loans, and student loans.
The fact is, over half of Americans spend more than they earn each month. When disaster strikes (a sudden job loss, or an unexpected home/automobile repair), these events can knock a person’s finances so off track that they won’t be able to keep up with their monthly payments. It is in these moments of disaster when people begin to realize how precarious our financial situations are.
Living paycheck to paycheck is not financial security; it’s a sandcastle. People have to decide they want a better life, and it’s best to decide before confronted with a crisis. Here are seven strategies you can begin implementing now to start reducing your debt and begin the road of a more abundant life.
Seven Strategies for Getting Out of Debt
1) Live within your means. Everyone needs a budget. What you spend each month must be less than or at least equal to the amount of money you are earning. For many people, that’s easier said than done. If you are facing that scenario, consider step two.
2) Find a side hustle. In today’s gig economy, there are a number of platforms allowing people an opportunity to earn extra income. I have seen everything from people driving for Uber and Lyft to people shopping with Shipt. The direct sales industry continues to be at the forefront of helping people earn that extra income. Many network marketing companies have made the mistake of over-hyping the income potential. Smart companies are evolving, though. Most people don’t believe that becoming a millionaire is possible. It is by the way. Not easy. But it’s possible. But, what if we can show people a clear path to earning an extra $300-$500 per month with a simple, duplicatable system? In the economic collapse of 2008, the data indicates that the vast majority of home foreclosures would have been eliminated with an extra $300 coming in. Network marketing can be a tremendous secondary source of income. Author Jim Rohn once said the direct sales industry empowers individuals to work full-time on their job and part-time on building their fortune.
3) Cut out what you do not need. We are all tempted by something. For some, it might be a trip to the local shopping center. For others, it might be shopping on Amazon. Consider what you can cut out. Look at how many subscriptions you have for streaming services. I know some people who continually complain about how broke they are, yet they have monthly subscriptions to HULU, NetFlix, Amazon Prime, and YouTube. The average streaming service costs between $12.00 and $20.00 per month. The average American subscribes to at least four streaming services, and 38 percent have over five. I’ve never known someone who got himself/herself out of debt by watching television. So keep that service you love the most and cut the others off.
4) Seek financial accountability. Find a mentor in this area and allow him/her to help you. Many churches offer small groups that focus on educating people on getting out of debt. A financial coach can help you say yes to income-producing activities and say no to those activities that drain our wallets and increase our debt load.
5) Reward yourself when you reach milestones. Life is too short to live locked up spiritually, emotionally, and financially. In the past three months, our society has been on lockdown due to COVID-19. Although it was considered necessary to contain the coronavirus spread, the toll it has taken on mental health has been a disaster. People were not designed for isolation. If you have met some of your financial goals, go ahead and put something on the calendar to reward yourself for hitting a milestone. Plan a night out with your spouse. Go ahead and schedule a trip. Right now, hotels and resorts are offering some great deals. I have learned that most people work harder when they have a prize at the end of the journey. Decide what your prize is and put it on your calendar.
6) Forgive yourself. Nothing works against our emotions more than the pain of regret. If you have found yourself in a mountain of debt, there is nothing more destructive than negative words that empower limiting beliefs. There is no time machine. We can’t undo the past, but we can learn from it.
7) Tithe Regularly. If there is one lesson I have learned as a Christian, it’s this. We will never be able to outgive God. Malachi 3:10 reads, “Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.” Tithing is not a business transaction with the Lord. We should not tithe to manipulate God’s favor. In 2 Corinthians, it states, “Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” At the end of the day, everything we have belongs to God, and He has called us to be stewards of His provision. God blesses the rest when we give God the first of everything we have (time, talent, and treasure). That includes our money.
So many have just accepted that where they are in life is simply just how life works. It’s the price we pay to live in America. But I am here to tell you that your debt load does not define you, nor does it have to defeat you. No matter what kind of debt you are in — student loan debt, car loans, credit cards, or something else — it’s essential that you know there is a way out. It won’t t happen overnight, but a debt-free future can be yours if you create a plan and stick with it long enough for it to work. No matter what your plan is, I hope these strategies can help you get out of debt faster so that you can start living the life you truly want.
God Bless!
Bill
