Getting out of Debt

After passing the Board Licensure exam in Medicine then getting married, I proceeded to specialty training.  My husband, also a doctor, and I wanted to start a family early; our prayer was immediately answered when I became pregnant in my second year of training. However, the pregnancy became complicated so I quit the specialization to prevent a miscarriage. God allowed my husband to complete his training by the time I had to stop working. This was the beginning of my husband's career in being a medical consultant and my career in managing our household finance.

Our savings got wiped out because of the complications incurred during my pregnancy so we had to start from scratch. For most, budgeting finances is a piece of cake, but I believe that it is a craft that can be developed.  It involves processing where your money should go. With all the pressing concerns at that time, we got into debt and we lived from paycheck to paycheck. Budgeting was a skill I needed to master immediately. 

Back then, my husband and i had not learned biblical principles with regard to finances. We were invited by my mom to the Family and Finance seminar at Christ Commission Fellowship. After this conference, we decided to surrender our finances to God. So our question changed to: "Lord, how do we manage YOUR money? Where do YOU want it to go?"

God impressed upon us the need to GET OUT OF DEBT. We did not get into any bank loan or incur bad debt (from overspending or credit card misuse). But we did owe our parents money for us to improve our cash flow. There was no other pressure at that time to pay off our debts to them, but God instructed and convicted us to do so in these verses:

Psalm 37:21 " The wicked borrows but does not pay back.."
Romans 13:8 "Owe nothing to anyone except to love one another.."

By God's grace, He faithfully provided until our savings became sufficient to pay our parents what we borrowed from them.  We learned this principle: when in debt, it is important to first improve your cash inflow then saving a big portion of one's income.  This requires discipline because the hardest thing about saving is getting started. Then start paying off your debt no matter how small or big the amount. No, one does not have to become rich first before starting to  pay off one's debt.

Here is the strategy that we recommend: 

1. CONSOLIDATE your debts. Make an accounting of all your debts, including charges in interest 

2. DISCUSS it with your spouse.  Decide how you will tackle it. 

We learned that there are two schools of thought on how to pay off DEBT: 

1. The Snowball effect: Paying off the smallest debt first so that you have a sense of achievement
2. Target the one that hurts most: Pay off the high-interest debt first because it is the most crippling.

Whatever strategy you choose, it is important to have a written plan. 

Write down your expenditures and determine which are not essential for living. Evaluate every purchase.  Remember, A SALE is not an EMERGENCY. Do not purchase your tomorrows for a little extra comfort today.

Larry Burkett said "The root issue is actually not saving, it is self-control". 

Saving may be the hardest financial discipline to master but it provides a number of great benefits such as having surplus cash for unexpected expenses.

Practice Saving. YES, even if you are in debt! God instructs us to look at the Ant. The ant has no ruler or overseer but it is always saving a portion of its food.

Proverbs 6: 6-11
6 Take a lesson from the ants, you lazybones.
    Learn from their ways and become wise!
7 Though they have no prince
    or governor or ruler to make them work,
8 they labor hard all summer,
    gathering food for the winter.
9 But you, lazybones, how long will you sleep?
    When will you wake up?
10 A little extra sleep, a little more slumber,
    a little folding of the hands to rest—
 11 then poverty will pounce on you like a bandit;
    scarcity will attack you like an armed robber.

This does not mean you have to keep working and not rest. A man once said that he has all the time to sleep when he dies! Remember, times of refreshment prepare us for times of service.

If you are in debt because of the misuse of credit card then literally cut up the card. Develop the habit of paying purchases on a cash basis. 

Above all, Seek GOD. PRAY. God is interested in you becoming free from debt. God says in Matthew 6:33 "But seek first the kingdom of God and his righteousness, and all these things will be added to you.

Make this mental note today: God is greater than our circumstance and no situation is beyond hope in Christ.

– Katrina Rey MD