Eliminating Debt: Steps to Financial Freedom

Overcoming debt is the first step in finding financial freedom.

Battling debt can be an overwhelming, discouraging, and sometimes isolating feat. Whether you’re grappling with pesky credit card bills or buried under a mountain of student loans, we want to walk alongside your journey toward financial freedom. Our team at is here with practical tips to conquer debt.

But before we dive in, let’s take a look at why we should reduce debt in the first place.

What Does God Think About Debt?

As Christians, it can be difficult to understand how faith intersects with finances. Does God care about our money problems? Is having debt a sin?

The Bible actually has a wealth of wisdom on matters of money, revealing that God does indeed care about how we handle our finances. In fact, our spending habits directly reflect what’s going on in our hearts (Matthew 6:21).

While the Bible doesn’t say that it’s a sin to borrow money, it’s clear that God desires us to experience financial freedom and fulfill our commitments to those we owe (Psalm 37:21).

Here’s the beautiful part: God promises to provide us with everything we need (Philippians 4:19) and assures us of the joy of generosity (Acts 20:35). Walking in financial freedom allows us to trust in God’s provision and give more to others.

God’s call for us to lead a debt-free life acts as a powerful motivator in our fight against debt. Now that we understand the “why” behind conquering debt, let’s talk about strategies to achieve that freedom.

Watch Encouraging Messages Online

At , we have encouraging sermons on all kinds of topics. Watch a message online at any time or join us this weekend in .

Watch Now

Assess Your Financial Situation

Before diving headfirst into battling your debt, it’s important to come up with a game plan. Start by opening a spreadsheet (or a pen and paper if you’re feeling old school) and listing everything you owe. Make note of who you owe, how much you owe, the minimum amount required each month, interest rates, and due dates. Try organizing in order of highest to the lowest minimum payment to get a clear idea of what you’re up against.

Next, take a look at your spending habits. How much are you currently spending on items like food, utilities, rent/mortgage, entertainment, and gas? Be honest with yourself and make sure to differentiate between “wants” and “needs.” This will come in handy later.

Finally, it’s time to determine how much extra money you can use to chip off each debt. Simply subtract your total monthly spending from your monthly income. Don’t worry, we’ll help you find ways to cut back or increase your cash flow if needed.

Save with Above-Minimum Payments

If you’re able, try paying above the minimum amount due. Paying above the minimum will help you pay off your debt faster and save on interest. You can either make an extra monthly payment or add extra to your regular minimum payments.

For those juggling multiple debts, we suggest paying the minimum on all your loans except the one with the highest minimum payment. Give that loan some extra love until it’s paid off, then move on to the next loan with the highest minimum payment. This highly-motivating strategy is often referred to as the Snowball Method. The same method can also be applied to loans with the highest interest rate.

Find Ways to Spend Less and Make More

If you’re struggling to come up with extra cash to put toward debt, it’s a good idea to re-examine your budget and identify areas where you can spend less. Are there items in your “wants” category that you can cut back on? This could look like cutting a monthly subscription, eating out less, skipping the monthly manicure, hitting a pause on investments, or canceling that gym membership. Remember, it doesn’t have to be forever. Try setting a realistic timeline for your “spending freeze.” It will be worth it in the end!

You can also find creative ways to make some extra money. Whether it’s selling items online, picking up a part-time job, or turning that hobby you love into a side gig. You would be surprised by how many people out there who would love to pay for your resources and talents. Remember, even a little extra cash can go a long way. So don’t be afraid to think outside the box and explore these creative avenues to make your wallet a little happier.

Continue Giving

While it may seem counterintuitive, it’s crucial to maintain a spirit of generosity even while fighting off debt. As previously stated, how we manage our money speaks volumes about our hearts. Giving, especially amid financial difficulty, shifts our eyes away from ourselves and reminds us of what truly matters in life: loving God and others. Our bank accounts may come and go, but love endures. So, let’s choose to accumulate heavenly treasures by serving those around us.

We hope that these tips become valuable tools in your debt-battling arsenal. Remember, you are not alone in the fight. is by your side, ready to support you every step of the way. We care about helping you find the financial freedom that God wants for your life!

Join Us This Weekend