Using faith to get out of debt

Psalm 24:1 says, “the earth is the Lord’s and everything in it, the world, and all who live in it”.

This means EVERYTHING – including money.

But with the holiday season looming, how can we avoid falling into the pattern of racking up debt? We have to look at the bigger picture. Besides tithes and offering, believers can leverage our faith to ensure that we become good stewards of our finances, and avoid going into the new year with a cloud of worry over our heads.

Below, guest blogger Imani Hamilton shows us how to get started.

Have you ever looked at your debt, felt overwhelmed and wanted out? If so, you know that the struggle is real. 

While it can be challenging, you can still pay off your debt with success with the right focus. This blog post will show you how you can incorporate F.A.I.T.H to help pay off your debt and live an abundant life. 

Finite

Some of us have been in debt for so long, it is hard to imagine life without it. You may think that you will be in debt forever, but you should view debt as a source of funds held for a finite period of time, not indefinitely. By design, loans have maturity dates because even the lender looks to get repaid within a specific window of time. Most importantly, God did not intend for us to be burdened down with debt. Proverbs 22:7 states that the borrower is slave to the lender and Romans 13:8 tells us to owe no man nothing but love.

Active

When overwhelmed with debt, it is tempting to avoid it. You might even want to stick your head in the sand and just forget it’s there, but getting out of debt requires your active participation. There are debt paydown strategies including the snowball and avalanche methods that you can use. The snowball method is when you tackle your debt from smallest balance to largest and the avalanche method is when you tackle your debt from highest interest rate to lowest. Only you can decide which is right for you and take the action needed to see results. 

Informed

Lack of knowledge can cost you money so be informed about what you owe and the terms of each loan so you can position yourself to negotiate a better option when the opportunity arises. Just knowing what your interest rates are can help you assess current rates to see if refinancing or renegotiating makes sense to pay off your debt faster. For each loan, you should know the lender name, amount owed, interest rate, whether the rate is fixed or variable, required monthly payment and term of the loan, at a minimum. 

Tireless

A common theme that comes up during the process of getting out of debt is fatigue. For most people, getting out of debt takes time, discipline and sacrifice. You may be pumped at first, but after a while it can feel daunting. Do not get weary in well doing. Be tireless in your efforts, push through and keep going, knowing that your future self will thank you for it.

Hopeful

Faith is the substance of things hoped for, the evidence of things not seen. As you take action to pay off your debt, put your hope in God that he sees you and will give you creative strategies and resources to aid you in your debt free journey.

What other strategies do you use to aid in your debt free journey?

About Imani Hamilton

Imani Hamilton is the Founder of Finance by Faith, a financial coaching and consulting company that helps people of faith manage their money, eliminate debt and own their wealth. With over 15 years of experience in financial services, she brings her professional expertise and personal financial journey to educate others on how to be good financial stewards so they can live an abundant life. You can find her on Instagram and LinkedIn.