* The average American family devotes 1/4 of its spendable income on debts. * The IRS calculates that the average filer spends 10 times more on paying interest on debts than towards charitable causes. * As of 2010, the average American credit card holder owed over $8,000.

Despite so many drowning in problems of debt, our culture loudly insists that there is “good debt;” and that it is a tool that can be used for our good. College classes support this mindset as well, using terms like: “leverage, internal rates of return, and net present values.”

of our American culture are in direct contradiction The “debt principles” of our American culture are in direct contradiction with God and His Word: “The borrower is slave to the lender.” (Proverbs 22:7) “You are slaves to the one you obey.” (Romans 6:16) “Do not become slaves of others.” (1 Corinth. 7:23)

Psalm 37:21 “The wicked borrow and do not repay, but the righteous give generously”

67% of those surveyed were “1st Generation Rich” (worked for their money) ------------------------------------------------------- The most important key to becoming wealthy, 75% said “Getting out of and staying out of debt”

* Couples often spend the first 5-7 years of their marriage trying to attain the same standard of living as their parents, although it likely took their parents 30 years to get to that point. * 52% of marriages in North America end in divorce. The #1 reported cause is money fights and money problems. Of those that divorce in the first 7 years, 90% say that money caused it.

We must overcome a “debt mentality” I need more than God gives me. God doesn’t best understand my needs. God has failed to provide for my needs, forcing me to take matters into my own hands. If God doesn’t come through the way I think He should, I can find another way.

Proverbs 6: 1-5 Godly wisdom from King Solomon on what to do if one should find themselves stuck in a “trap of debt” to someone else.

In terms of paying off debts in our lives, there are 2 main approaches on how to go about it, both using the imagery of snow: The Debt Snowball (from Dave Ramsey) The Debt Avalanche

In the Debt Snowball & Debt Avalanche, you primarily focus on paying down one loan/debt at a time while making minimum payments on all other debts. Over time, all of the debt accounts will whittle down one by one.

Start with Lowest Balance Start with Highest Interest Rate

Getting into debt didn’t happen overnight, so neither will getting out. Some strategic steps, done intentionally over time (with God’s help) can release us from this trap.

Step #1: Save Money Although the initial impulse may be to just start cutting up those credit cards… you need something sturdy to lean on before you start burning your old “crutch.” Initial Savings goal: $1,000

Quit Borrowing More Money Step #2: Quit Borrowing More Money * This includes co-signing (Proverbs 22: 26-27) No matter what or how much you want something or think you need it. Save up for purchases. Now…it’s time for some “plastic surgery.”

Step #3: God is the Owner of EVERYTHING and longs Pray for God’s Provision God is the Owner of EVERYTHING and longs to aid you as you walk this honorable path. Ask!

Matthew 5: 31-33 31 “So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32 For the pagans run after all these things, and your Heavenly Father knows that you need them. 33 But seek first His kingdom and His righteousness, and all these things will be given to you as well.”

Step #4: Sell Something! In business terms, “liquidate your assets.” Sell your stuff. Sell so much stuff your family members may think they’re next! Sell your car, if necessary. Be “cut-throat” and honest.

Take on an Extra / Part-Time Job Step #5: Take on an Extra / Part-Time Job “If you don’t work, you don’t eat.” (2 Thessalonians 3:10) An extra job should add income into the home for a season… but not permanently.

“Escaping the Debt Trap” * Pay Down Debts Snowball - Lowest Balance Avalanche - Highest Interest Rate -------------------------------------------------------------------------- “Escaping the Debt Trap” 1.) Save Money 2.) Stop Borrowing Money 3.) Pray for God’s Provision 4.) “Liquidate Your Assets” 5.) Take on Extra Work

What would it mean to be Debt-free? Debt-free individuals Debt-free families Debt-free church Debt-free nation * What good could God accomplish through us all if we were free from the trap of debt?