Overcoming the debt cycle.

You've confessed it over and over again, “I'm out of debt, my needs are met”. One year passes, two years pass, and your circumstances haven't significantly changed. What happened? The Bible says that faith without works is dead, being alone. Along with all of your confessing, you need a plan of action.

The primary reason many Christian women are in bondage to debt is because we haven't taken the necessary steps to aid in bringing about our change. We expect God to miraculously intervene in our circumstances and wipe our slates clean. In all probability, you gradually accumulated debt over a course of time and by the same token, your deliverance will not likely occur over night. Our natural tendency is to avoid the way of sacrifice and discipline. Rather, we opt for the way of ease and comfort. Yet, it is the process of self-discipline and sacrifice that develops the resolve within us to stand firm and resist Satan's attempt to lure us back into the debt trap once we've gained our freedom.

Let's take a look at a few of the reasons why we fall into the debt trap, measures we can take to free ourselves and finally, what we'll need to do in order to sustain our freedom:

Competing and comparing. Unfortunately, a desire to keep up with the Joneses' is one of the primary reasons many of us over-extend ourselves. We often live beyond our means because we refuse to be “out done” by another person. We become so pre-occupied peaking over the fence that we can't enjoy our own blessings. What's even worst is that we can become critical and cynical when we feel that our blessings don't measure up to those of other individuals. Competing and comparing can cause us to make irrational decisions that we will later regret.

Impatient. Some of the things that we desire are legitimate, however, our impatience to acquire them can cause us undue suffering financially. We live in a society that promotes instantaneous gratification — “get as much as you can, as soon as you can”. Notwithstanding, the Church has also bought into this obsession.

Never been taught about money. Dare I say that most people, including Christians, have never been taught about proper money management. Credit card companies prey on college students because they know how irresponsible and frivolous students can be with their spending habits. Creditors are betting that the burden will eventually fall on the parents. Financial responsibility should begin at an early age.

Never satisfied. Many people become debt-ridden because they have an insatiable appetite to acquire more “stuff”. The more they get the more they've got to have.

These are a few of the reasons we become ensnared by debt. Nevertheless, in spite of what may have triggered you to fall into the debt trap, the good news is that there is a way of escape. In fact, there are several measures you might take into account. Here are three to consider:

Debt Repayment Plan. If your credit card debt has become burdensome, you're receiving telephone calls from creditors or barely making the minimum payments each month, you might want to consider enrolling with a debt management organization such as Consumer Credit Counseling Service (CCCS). Rather than reporting negative information to your credit file, many creditors will usually post a note in your file stating that you are under credit counseling. Once you've completed the program, the counseling organization will help to re-establish your credit.

The enrollment time will depend upon how much debt you own and the amount you can reasonably afford to pay each month. You'll want to check with the Better Business Bureau before selecting an unfamiliar debt management organization.

Home Equity Refinancing. Home Equity Lending is borrowing additional money against your homestead — borrowing more than the existing loan on the property. As with any loan there are closing costs to be paid that can be rolled back into the loan.

The primary advantage of the home equity loan is to consolidate your debt into one monthly payment with a lower interest rate, thereby creating a lower monthly payment. Another advantage of consolidating high-interest rate credit card balances is that mortgage interest is tax deductible.

Before deciding on this choice, be sure to carefully read the lenders loan restrictions and guidelines which contain many safeguards for both borrower and lender.

Personal Budget Plan. It is possible to eliminate your debt without the aid of an outside party. It could simply be a matter of restructuring and prioritizing your financial affairs. It is essential that you establish a budget by which you can live. A budget will serve as a road map to gauge your progress, track your finances and keep you on target. After assessing your financial situation, you might need to eliminate or cut back on expenses that are not “ordinary and necessary”. Ordinary and necessary expenses are those expenses you must incur in order to maintain your livelihood, such as food, utilities, rent, etc. Perhaps you'll need to carefully examine dining expenses, cable television, entertainment and recreation, etc. You may also want to inquire with your utility companies about getting set up on a budget plan.

Once you've attained your freedom from the debt trap, you'll have to work to hold on to your liberty. Here are some requirements:

Make responsible decisions. Don't allow yourself to be pressured into impulsive decisions. Beware of appeals that entice you to, “act now, this offer won't last forever”. Don't even enter into long-term contractual obligations such as home alarm systems, cellular telephones, etc. without asking three questions: 1) “Do I really need it?”, 2) “Will I use it?” and 3) “Can I afford it?”
Change your thinking. Please don't embrace the world's remedies as your solution to becoming debt free. Don't rely on the lottery as the answer, or that an unexpected check is going to arrive in the mail, or that a computer glitch is going to reverse that bad credit report. These are all signs of spiritual immaturity. Face up to the fact that you made some unwise financial decisions that resulted in your exposure to debt. A quick fix doesn't get to the root of the problem. You have to change your thinking.

Be led by the Holy Spirit. Don't make financial decisions without consulting with the Great Financier. Ask the Holy Spirit to be Lord of your finances. He will guide you. He will prevent you from entering into those impulsive contractual obligations. He will also lead you to bargains and to honest people who won't take advantage of you.

As Christians, we live in the world but we're not of the world. We're called to travel the straight and narrow path rather than the broad and wide road. We don't always understand why the world possesses so much. As a result, we often play by their rules and ultimately suffer the consequences. Your greatest test is to be patient. As the world turns, there will always be seedtime and harvest. Don't allow the world to lure you into its “get-all-you-can-now” system. Keep traveling down the straight and narrow pathway. In the final analysis, you'll be glad you did.