Financial Freedom Series: The 7 Step Debt Attack Strategy (Part 4)
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.
Now, let’s recap on Sino and Sarah did…
Now, let’s get into the final two steps…
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.
STEP 6: ROLL OVER YOUR PAYMENT INTO YOUR NEXT DEBT
- ONCE THE FIRST DEBT IS SETTLED, ATTACK THE NEXT SMALLEST DEBT.
- KEEP ROLLING PAYMENTS INTO NEXT DEBT.
- GATHER MOMENTUM.
STEP 7: PAY IT FORWARD
- IT IS TIME TO CELEBRATE – YOU HAVE PASSED THE FIRST HURDLE
- YOU CAN START TO RE-INTEGRATE SOME OF THE “NICE-TO-HAVES” INTO YOUR BUDGET.
- BUT MAKE SURE YOU NOW START BUILDING YOUR WEALTH PORTFOLIO BY TURNING YOUR INCOME INTO ASSETS.
- YOU CAN NOW BUILD TOWARDS FINANCIAL FREEDOM.
Next week, we move on from debt. We will look at how you can achieve your
goals and dreams and how you can set up a workable strategy that will help you
achieve your dreams and build toward financial freedom.
“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.” (Proverbs 21:5)
