Financial Freedom Series: The 7 Step Debt Attack Strategy (Part 3)

Welcome back to our Financial Freedom Series, where we’re looking into God’s Blueprint for Building Wealth and Managing Your Money Well!

We dive into biblical principles and cutting-edge money management wisdom to help you…

• Honor God with your money
• Build wealth
• Shrink your debt
• And build toward financial freedom

“The rich rules over the poor, and the borrower is the slave of the lender.” (Proverbs 22:7)

“But remember the Lord your God, for it is he who gives you the ability to produce wealth.” (Deuteronomy 8:18)

“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.” (Proverbs 21:5)

“The wise man saves for the future, but the foolish man spends whatever he gets.” (Proverbs 21:20)

“I will guide you along the best pathway for your life. I will advise you and watch over you.” (Psalm 32:8)

So many people are…

• Battling to make ends meet, 
• Living above their means,
• Cash-strapped,
• Debt-ridden,
• Just trying to survive,
• Going through the motions, and
• Disillusioned with life.

Over the last few weeks, we have looked at various aspects of DEBT.  

So far, we have… 

• Looked at the horrific statistics on debt,
• Encouraged you not to give up but to surrender your debt to God,
• Looked at the difference between good debt and bad debt,
• Encouraged you to face your debt and examine your current financial position,
• Motivated you to act and deal with your debt,
• Shared how you can avoid the debt trap,
• Looked at the consequences of being in debt,
• Shared 21 practical steps to break the debt cycle and build toward financial freedom.

7-Step Debt Attack Strategy 

I can tell you that this strategy works. Moreover, many who have applied this strategy have settled their debt faster than they ever imagined.  

The 7-STEP DEBT ATTACK STRATEGY will help you implement a workable solution to obliterate your debt and regain control over your financial affairs.  

You can wipe out your debt, and you can also build towards financial freedom.  

Last week, we looked at…  

Step 1: Examine Your Numbers 

To attack your debt, you need to know your numbers and clearly understand your overall financial position.  

Once we know where you are, you can devise a strategy to attack your debt.

Once you know your numbers, we can go on to STEP 2… 

Step 2: Analyze/Plan  

To attack your debt, you must look closely at our ASSETS, BUDGET, and  DEBT and devise a PLAN to attack your debt.  

In the two weeks ago, I introduced you to Sino and Sarah… 

To recap, let us take a closer look at the changes Sino and Sarah made to their budget… 

Today, we will dive into STEPS 3 to 5… 

You need to keep paying the minimum payment on each of your debts. (Failure to do so will compound the problem, leaving you with a bad debt, extra interest accumulated, possible legal costs, and you may end up being blacklisted) 

You must also take the money you have freed up from the sale of any assets and use this to attack your debt. 

You also need to take the surplus cash in your budget and use it by paying it into your smallest debt.  

Please ensure that you continue to pay the minimum payment due on all outstanding debts. Using the cash flow you freed up in your budget, plus any excess funds you might have available, start paying extra towards the ‘smallest’  debt. 

This will enable you to pay off this debt quicker than originally planned. 

You will be motivated to stick to your plan by paying off one of your debts. This will also give you a huge feeling of accomplishment. 

Take a look at what Sarah and Sino did… 

“If you want something you have never had, you’ll need to do something you’ve  never done!” (Dave Ramsey) 

Don’t try to face your financial fears and debts alone.

Ask God for wisdom and help. 

He wants to walk the journey with you. 

In a nutshell… 

STEP 1: YOU NEED TO KNOW YOUR NUMBERS 

• ASSETS – WHAT DO YOU OWN? 
• BUDGET – WHAT AM I EARNING? WHAT AM I SPENDING?
• DEBTS – WHAT DO YOU OWE? 

STEP 2: ANALYSE / PLAN 

• CAN I EARN MORE? START A SIDE HUSTLE? BECOME A POLYJOBBER?
• CAN I CUT BACK ON MY NON-ESSENTAL EXPENSES FOR A SEASON?
• SET UP A PLAN TO FREE UP CASH FLOW. USE THS TO WIPE OUT YOUR DEBT. 

STEP 3: LIST YOUR DEBT AND IMPLEMENT YOUR STRATEGY

• LIST YOUR DEBTS FROM SMALLEST TO LARGEST.

STEP 4: START PAYING OFF YOUR DEBT 

• PAY THE MINIMUM DEBT REPAYMENT INTO EACH OF YOUR DEBTS.
• TAKE THE FUNDS YOU HAVE FREED UP FROM THE SALE OF ASSETS AND USE THIS TO WIPE OUT YOUR DEBT. 
• TAKE THE CASH FLOW YOU HAVE FREED UP IN YOUR BUDGET AND USE THIS TO PAY OFF YOUR SMALLEST DEBT. 

STEP 5: COMMIT YOUR PLANS TO GOD 

• GIVE GOD YOUR DEBT AND YOUR BURDENS. 
• ASK HIM TO HELP YOU. 
• HE WANTS THE BEST FOR YOU. WHEN YOU COMMIT YOUR PLANS TO  GOD, THEY WILL SUCCEED. 

“Trust in the LORD and do good; dwell in the land and enjoy safe pasture. Take delight in the LORD, and he will give you the desires of your heart. Commit your way to the LORD; trust in him, and he will help you.” (Proverbs  37:3-5) 

Next week, we will look at STEP 6 and show you how you can pay it forward to wipe out your debt. This process, as we will look at next week, will take quicker than you think! 

You can DECLARE WAR on your debt and BREAK THE DEBT CYCLE!