Debt FreedomSession 1 – Change Your Mindset

Average American family has $9,000 in credit card debt

Debt is stealing our freedom

The rich rules over the poor, and the borrower becomes the lender’s slave

Proverbs 22:7

It’s our responsibility to

be free!

You were bought with a price; do not become slaves of men

1 Corinthians 7:23

What would debt freedom mean to us?

Individuals?

Families?

Congregation?

Community?

Our Only Real Debt Should Be to Each Other

Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.

Romans 13:8

How will we become debt free?

How will we become debt free?

Debt defined

Debt and our lifestyle

Debt and spending

Debt and financial independence

Confess and declare

Debt use

Debt and your credit rating

Expenses and debt

The fuel for debt freedom

Debt freedom strategies

Credit card

Installment

Car loan

Mortgage

Student loan

New habit patterns

Debt freedom principles

Family finance goals & strategies

Impact & transform

Change Our Mindset

If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you.

But when you ask, you must believe and not doubt, because the one who doubts is like a wave of the sea, blown and tossed by the wind.

That person should not expect to receive anything from the Lord. Such a person is double-minded and unstable in all they do.

James 1:5-8

Get rid of the doubt and all poverty thinking

Types of Debt

Consumer purchases

Impulse spending

Make ends meet

Auto loan

Timeshare

Furniture

College

Grad school

Vocational

Family home

Rentalproperty

Vacation home

Finance a business

Make ends meet

Is it all necessary?

Is it all bad?

Debt’s Impact

$580

$1,840

$3,130

5 years

$1,200

$2,480

10 years

15 years

20 years

25 years

1 credit card with a 19.8% rate and a $500 initial balance2 additional charges per year of $75 eachMade the minimum payment each month

Interest charges over time:

Debt’s Impact

$2,317

$5,633

$6,870

Year 1

$4,210

$6,538

Year 2

Year 3

Year 4

Year 5

Purchased $28,000 carFinanced $25,000 at 10% for 5 yearsMade $531 payment each month

Interest charges over time:

“Debt is the result of overspending and

undersaving.”- Dave Ramsey

Spending HabitsEssential

Savings

Tithes

Food

Clothing

Healthcare

Insurance

Shelter

Transportation

Utilities

Discretionary

Meals out

Entertainment

Travel

Grooming

Clothing (extra)

Household décor

“On the bubble”

Education

Fitness

Experiences

Are we using debt to fund any of these?

Income is your most important wealth creator

Debt is the great income-killer!

Income

ExpenseIncome

Expense

Easy Street Dead End

Debt

If we would just obey

However, there need be no poor people among you, for in the land the LORD your God is giving you to possess as your inheritance, he will richly bless you, if only you fully obey the LORD your God and are careful to follow all these commands I am giving you today.

For the LORD your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.

Deuteronomy 15:4-6

Change Your MindsetSummary

Debt steals our freedom

It is our responsibility to be free

Next Session

Visualize and Confess

How are we using debt now

Realistic alternatives to debt

Debt and your credit rating

Expenses and debt