debt freedom session 1 – change your mindset. average american family has $9,000 in credit card...
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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