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My Journey to becoming a Nobel Woman – Day 38

February 25, 2010

Reduce Your Debt

Scripture to Memorize:

She opens her arms to the poor

and extends her hands to the needy.

When it snows, she has no fear for her household;

for all of them are clothed in scarlet.

Proverbs 31:20-21

Passage to Read: Nehemiah 4:1-2 Today’s passage tells us about Sanballat and how when he heard the Jewish people were going to rebuild the wall became angry and began to ridicule them.

Guided Prayer:

Thank the Lord for the example of Nehemiah who courageously worked to rebuild the walls around Jerusalem even while he was surrounded by those that threatened him and wanted to distract or discourage him from his goal.  Explain how you are facing your own “rubble” today.  Ask for God’s help to not become discouraged.  Acknowledge that you won’t be able to rebuild the wall or even clear out the “rubble” in a day (it took longer than a day to happen too).  Acknowledge that God can work miracles.  Trust that God can bring stones back to life from heaps of rubble and He can enable me to get my finances in good order.  Thank the Holy for teaching you about good money management.  Promise to do your best to be a good student and a faithful wall builder.

Personal Observation:

I don’t know about you but when I review my assets/liabilities worksheet two things I discovered:

  1. I need more assets.
  2. I have a mountain of liabilities (did get some of them taken care with our income tax refund but not all).

Like most Americans I am surrounded by “rubble” of consumer debt.  It’s all too easy to say charge it these days.  Dave Ramsey suggests using the Debt Snowball in his The Total Money Makeover.  What is the Debt Snowball?  Here are the 6 steps to follow:

  1. List your debts in order with the smallest payoff or balance first.
  2. If you have two debts with similar payoffs, list the higher interest-rate debt first.
  3. Pay off the smallest balance first.  Anytime you get some extra money, put it toward paying off your debt rather than acquiring more stuff.  Meanwhile, be sure to make your monthly payments on all your debts.
  4. Once you’ve paid off the first debt, apply the entire monthly payment that you used to pay toward the first debt toward the second debt on the list (continuing to pay the previous payment on that debt as well).  (Example if previously you paid $30 on your first debt and $30 on your second, when the first is paid off you will pay $60 on the second.)
  5. When you’ve paid off the second debt, roll that payment into the third.  (Example:  $60 on the second, $30 on the third now becomes $90 on the third.)
  6. Continue until you have paid off all consumer debt.

Once the devil realizes you are serious about getting out of debt, you’ll probably be faced with all sorts of temptations.   You will need to ignore these temptations.  You can opt out of many of these temptations by opting out of all pre-approved credit card offers by visiting or calling 1-888-5OptOut.

Stay focused on your task — getting out of debt.  Once you do that, you can rebuild the walls of financial fortress  and secure your family’s future.  Then like the Proverb’s 31 Woman you will have no feat for your household.

Practical Application:

Complete the Debt Reduction Strategy worksheet.

Notebook: Place the Debt Reduction Strategy sheet in the financial section of your Personal Notebook.

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