How to Get and Stay Out of Debt

There are many ways to get out of debt. This guide will help you start the process of getting out of debt.

Difficulty: Easy

Instructions

Things You'll Need:

• Cell Phone
• 1 Gallon Storage Bag
• Water
• Credit Cards
• 10 envelopes
• Excel

1. The key to financial freedom is to know the importance of a budget. The fundamental principles are 10% of gross to God, 10% to Savings (for a rainy day), and you are allowed to spend or invest the rest. Why the 10% rule of gross income? So that you and your house will be blessed. Malachi 3:10 says "Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the LORD of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it"

2. The first step to getting out of debt is to stop spending. Usually using credit or debit cards creates extra spending resulting in charging money you do not have. To resolve this, gather all your credit cards and make a copy of the front and back of the card or write the front and back data on a sheet of paper.

3. You will put the regular, non debit credit cards in the gallon bag fill it with water and freeze them. On the outside of the bag write "Do I Need or Want to make a purchase). If it is a need such as an emergency the water pipe just broke etc. Start chipping. However, if it's a need you will have to wait.

4. Debit Cards - Leave them at home. From now on before you use your debit card, you should have planned in advance to use it. This means that you intentionally have to go home to get the card rather than use it on a quick occasion.

5. Get the 10 envelopes - Write your monthly bill in each envelope and put cash or a check in it. House $800, Car $450, Gas $230, Water $150, etc. Along with this keep a excel sheet of your monthly spending. Everything you pay out for should be planned.

6. There are many great online banking accounts. I personally recommend as noted below. Use online banking accounts to automatically pay your bills. As a result you wont have to worry about being late and paying extra fees.

Tips & Warnings

• Saving your money can be hard. In the short and long run you will benefit.
• Many Christians are in the place of financial freedom by following God's rules.
• Find out why you have the need to spend money. This will allow you to be set free from having to go in debt.

Resources

• Ing Direct Banking
• Immigrant Direct Online Banking

[makaksa]

on 4/2/2009 I agree with your recommendation of ING Direct- they have been great.

[simplykinaba]

on 4/1/2009 I agree with finding out why you have the need to spend money. Are you lonely, trying to keep up with The Jones'", angry at your spouse, etc.!