Get out and stay out of debt

Get out and stay out of debt
There are many ways to get into debt but only one sure way to get out and stay out of debt: self-discipline.

Debt can best be eliminated by following these steps.

1. Transfer ownership of every possession to God
2. Allow no more debt, including bank and personal loans, and cut up all credit cards if unable to pay them off each month
3. Develop a realistic balanced budget that will allow every creditor to receive as much as possible monthly
4. Start retiring the debt, beginning with the smallest debt first. Once the smallest is paid off, put all the money on the next, and so on.

Generally speaking, if these steps are followed, the average family will be debt free in less than five years and the problem that caused the debt in the first place could very well have been corrected.

In order to stay out of debt, two steps need to be followed.

1. Develop a written plan of all expenditures in order of importance. Determine whether the expenditure or purchase is a need (basic necessities such as food, clothing, and housing), a want (things that make life easier, such as more expensive clothes, a VCR, or air conditioning), or a desire (more expensive wants, such as designer clothes, a new BMW, or a wide-screen TV).
2. Open a savings account and get in the habit of putting something into the savings account regularly, perhaps every week or every month. The amount of deposit is not nearly as important as the consistency in making a deposit. This savings can then be used for specific purchases or emergencies, rather than making these purchases on credit.