Get Out of the Debt Trap

The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7

If you are in debt, you are probably going through one of the most stressful times of your life. Once you borrow money understand that you are the lender’s slave and the owed debt will lead to low credit score, higher interest rates, anxiety, and depression.

You are also likely to feel lonely, trapped, and hopeless. To become debt-free, you need to educate yourself and stick to certain rules to build a healthy financial future.

Here are certain practices that you need to follow to get out of debt and stay out of it.

  • Stop acquiring new debt—Do not get any deeper into debt. Use the credit card only for important purchases and emergencies. Live with just one credit card with the most favorable terms and cut the rest up. It will be better if you refrain from using credit.
  • Settle the balance on the credit card with the highest interest rate—Doing this will help you take the next step of moving the balances on cards with higher interest rates to those with lower interest rates. Later dispose of all the credit cards and stick with one.
  • Record and categorize your spending—List all your bills for each month and write the details of every transaction. This will help you stay within your budget guidelines. Categorize your spending into groups such as ‘Necessities,’ ‘Essentials,’ and ‘Non-Essentials.’ Necessities are things that you must have. Essentials are items you need, but you can do without for a while. Non-Essentials are things that you do not need, but that improves your lifestyle. Budget a specific amount of money to pay toward debt each month.
  • Establish an emergency fund—This will help you cope with unexpected expenses and also enable you to stay out of credit card debt. It is necessary to keep at least 3 to 6 months’ worth of expenses dedicated to emergency savings. This must be enough to cover expenses such as food, rent, bills, and other essentials for your daily life.
  • Start paying off your debts—Use your savings to pay off debt. Paying an interest rate of around 16-19 percent on your credit card makes no sense.
  • Increase your earning opportunities—Find a part-time job or sell that painting in your storeroom. Explore a way to increase your income.
  • Begin investing—Once you are out of debt, do not alter your lifestyle. Start investing with the help of a trusted financial advisor.

Getting out of debt will surely give you an ecstatic feeling, positively liberating. Experience it!

Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.

Romans 13:8

Add Comment

Show Buttons
Hide Buttons
Bible Reading Plans Bible Summaries Bible Verses by Topic Hymns Jesus on Earth Lent Season Praise Offerings Prayers Thought Pickers
bible verse for brokenhearted, bible verses for broken heart, bible quote for broken heart, bible scripture for a broken heart, bible verses for heartbreak
10 Comforting and Uplifting Bible Verses for Broken Hearts With Commentary
temptation, tempting, tempting me, bible temptation, overcome temptation, biblical temptation
10 Effective Ways to Overcome Temptation with Biblical Wisdom
resist temptations, prayers for temptations, prayer and tempation, prayer from temptation, prayer in temptation
3 Ultimate Prayers to Help You Resist Temptations in Daily Life
5 Minute Sermons Bible Facts Bible Heroes Bible in Pictures Classic Sermons Heroes of the Faith Historical Events Moral Stories Parables
heal the broken hearted, heal the broken heart, god heal broken heart, heal this broken heart, broken healing heart
2 Captivating Heal the Broken Hearted Sermons— How God Saves His Children
biblical abraham, abraham in the bible, abram, abraham, ab ram, bible about abraham, the biblical abraham, story of abraham in the bible, biblical story of abraham
Unveiling the Astounding Characters of Abraham in the Bible:10 Life Lessons
biblical characters, bible characters, bible figures, bible character in the bible, biblical characters in the bible
Exploring the Remarkable Traits of 4 Biblical Characters: Why God Chose?
Ask Bibilium Christian Living Christian Poems Christmas Season Contemporary Songs eBooks Festivals Gospel Tracts New Year Personal Development Quizzes Quotes Women in Christ
go light your world, go light the world, take your candle go light the world, take your candle go light your world, go light your world song
How the Song “Go Light Your World” Inspires Us to Make a Difference
beliefs of christianity, main beliefs of christianity, evangelical beliefs, types of christian beliefs, christian protestant beliefs
The 5 Essential and Paramount Beliefs of Christianity: An In-Depth Analysis
questions about christianity, biblical questions answered, godly questions, questions about christianity religion, confronting christianity
Unveiling the Truth: Top 10 Popular Questions About Christianity
Animated Bible Stories Factopedia Sunday School
christmas quiz, christmas quiz questions, christmas quiz questions and answers
The Spectacular Christmas Quiz | 12 Answers You Need to Know
in the arms of jesus, arms of jesus, jesus ark, safe in the arms of jesus
Safe in the Arms of Jesus | 1 Story of Redemption | Noah’s Ark
pitohui, hooded pitohui, poisonous birds
Hooded Pitohui | The Most Poisonous Bird in the World—10 Fascinating Facts
Don`t copy text!