10 steps to get out of debt

Howard Dayton’s 10 Steps to Getting Out of Debt
by Crown Financial Ministries


1. Pray. Ask the Lord's guidance toward "D-Day" – debtless day. As you eliminate debt, the Lord blesses your faithfulness.

2. Establish a written budget. This helps with planning ahead and seeing where you can cut back.

3. List assets. Consider each item -- furniture, cars, etc. -- and determine whether you should sell any assets.

4. List liabilities. Most people don't know exactly how much they owe. A list of liabilities gives you an accurate picture of your current financial position.

5. Establish a debt repayment schedule for each creditor. Decide which ones to pay off first.

6. Consider earning additional income. Pay off debts with additional earnings.

7. Accumulate no new debt. Start pay for everything with cash.

8. Be content with what you have. Limit television watching and magazine reading. The more you watch, the more you spend. The more you look at magazines, the more you spend.

9. Consider a radical change in lifestyle. Temporarily reduce cost-of-living expenses.

10. Don't give up! Getting out of debt is hard work, but freedom from debt is worth the struggle.