We're now ready for the all important fourth step in our special 6-part MiniCourse on the subject of getting out of debt God's way including your mortgage in less than 5 to 7 years (or maybe even sooner if you get the Lord really involved). It probably goes without saying but most likely you wouldn't be reading this MiniCourse unless you're serious about getting out of debt. It wouldn't be a surprise either to find out that you're sick and tired of making interest payments to some outside party in the World financial system and that you want to make a 180 degree opposite, debt free change for your life that you're hoping this MiniCourse can help you achieve. Well, I am confident that this exercise can be a big help to you and if it's not enough then we have more where this came from. If you need help just let us know.

When most people start trying to get out of debt, they typically don't approach it correctly. What they usually do is identify a positive amount at the end of their Financial Plan which up to that point is the correct thing to do, but then they split that positive amount up as additional small payments among ALL their credit cards over and above ALL their minimum payments. There is a more effective model that will get you TOTALLY out of debt much sooner which we're going to find out about in this Lesson.

First, before you start implementing this Lesson you should have already developed an adjusted Financial Plan from the previous Lesson and derived an achievable monthly SURPLUS at the end of the Plan. There must be a SURLUS in order to go forward with this Program.

Second, you should have completed establishing a Contingency Fund with a minimum balance of $2,000. Please don't start this next step until you have completed the Contingency Fund. If you want the best results from this Program please bear with us and do it our way so we can assure you that nothing less than TOTAL Debt Freedom can be achieved. Okay? Now you're ready to proceed!

Implementing the Repayment Model

You'll want to start by making a new list of all your creditors that you previously listed in Lesson Two starting with the creditor with the lowest outstanding balance at the top and then listing all your creditors in order from lowest to highest balance. For most people a credit card or small medical balance will be at the top of the list and the home's first mortgage will be at the bottom. To repeat: put the debt with the lowest outstanding balance at the top and the one with the highest balance at the bottom of the list.

Some folks ask: why don't you list the creditors from highest interest rate at the top to lowest at the bottom? Good question but we prefer the model with the lowest outstanding balance at the top because it shows more encouraging results at the beginning of the Program. If you run both models through the computer, for most people the final payoffs will occur at about the same time but experience shows that fewer people drop out of the Program before it ends if they experience encouraging results at the beginning of the Program. For this reason alone we've used the low-balance model in our ministry for many years.

So here's how it works. You have a list of all your creditors and you have the monthly minimum payments listed by each one. You then add the amount of the monthly SURPLUS from your Financial Plan to the minimum payment for the creditor at the top of your list. That's the creditor with the lowest balance. You pay that higher amount to that first creditor and only the minimum payments to all the other creditors. And you continue doing that until you've paid off the first creditor. Then, you roll down the amount you were paying to the first creditor consisting of the original minimum payment for that creditor + the SURPLUS you identified in the Financial Plan and add that combined amount to the minimum payment for the second creditor. And you pay that higher amount each month until the second creditor has been paid off. And you proceed down the list in that way until you've paid off all the creditors on the list.

By the way, if you need more detail on this model we recommend that you purchase our e-publication entitled: How to Pay Off Your Debts in the Shortest Possible Time. The cost is only $20.00 and it will provide a great deal of additional clarification that we can't fit into the restricted format of this MiniCourse. We highly recommend it and you can purchase it through one of our web sites like the following: www.creditcounseling.net or www.makeawayfinancial.org. Or just call us toll free at 1-800-357-4223 to make your payment and we'll email back to you immediately your personal copy of the publication. Is it worth $20.00 to you to find out how to become debt free for the rest of your life?

In any event, you just keep on proceeding down through the list as described above until you've paid off all your credit cards, your automobile loans and eventually you'll be paying the SURPLUS + the total value of all your previous creditor minimum payments as an addition to your mortgage payment. Experience shows that MOST consumers who commit to follow this Debt Repayment model exactly as it's presented in this MiniCourse can be totally DEBT FREE in 5 to 7 years with a paid-up mortgage without having to go through bankruptcy just by using what's available from their existing income. If you go out and get a second job on a temporary basis and you have more money to commit to the Program then you could be totally DEBT FREE in even a shorter time frame.

One thing to emphasize here though is that a lot of people go out and get second and third jobs when they're trying to get out of debt but in the process of doing that they separate themselves from their families for extended periods of time. The Truth is that's rarely God's best. You may need a second job temporarily for a short time to get things started but not for the whole program if you allow God by FAITH to come into your Program and head things up. If you make an effort to become debt free God will meet you and help you without your having to do everything yourself by your own strength. How strong is your FAITH? If you're studying His Word every day it'll be strong enough to get this job done easily (Romans 10:17) 

Now some people may have special situations that need to be addressed separately and we'll cover some of those next time in Step 5. Also, specialized coaching is available from the Head Office for an additional small charge if you need it. No matter what the situation is a complete strategy can be developed for you and your family that will work and will have you set totally DEBT FREE before you know it.

Key Points to Remember

Most people have wanted to be DEBT FREE for as long as they can remember but they didn't know how to carry it out. Or they've believed that indebtedness is just an unavoidable way of life. But total DEBT FREEDOM is possible and the way to achieve it combines our efforts and commitment with God's supernatural debt cancellation. God WILL help you with your Debt Freedom Program but usually (not always though) you'll have to take action to show your commitment and then the Lord will meet you where you most need Him.

This Lesson presents a model for rapid debt repayment that works. We didn't invent it and some of the best known financial "gurus" in the country both inside and outside the Body of Christ recommend this or a similar model. But in the final analysis it's only a model and it takes God's provision to make it work. If you see God as your Provider then eventually it WILL work and you WILL become permanently DEBT FREE. It's GUARANTEED.

We'll be emailing you Step Five of this MiniCourse with the next issue of PLN in three weeks on August 12. In Step Five you'll learn about some Alternative Debt Repayment Strategies to combine with this basic model for those who have advanced debt problems. If you need previous issues of this series just let us know and we'll send them to you right away.

In the meantime thanks for using this material. May God bless you with every spiritual blessing and make your way prosperous in every area of life.

Sinners' Prayer

If you've never invited Jesus to be the Lord of your life, you need to and you can do it today just by saying out loud the following simple prayer:

Jesus I declare today with all my heart that I believe in you and that God raised you from the dead. I receive forgiveness for my sins and I ask you to come into my life today and be my Lord and Savior. Thank you for salvation and eternal life.

If you were sincere as you prayed this prayer, God has already come into your life and you are a new creation, a totally new species recreated in His image. Now ask the Lord to lead you to a good faith-based, bible-teaching church where you can be equipped to fulfill your potential in the Kingdom of God.

Prayer Requests

If you have a Prayer Request, please connect to the Link below and follow the promptings. The PLN staff members pray over Prayer Requests every Tuesday morning at 10:00 AM eastern time. God bless you.

http://www.creditcounseling.net/prayer-request.aspx

About Prosperous Life Newsletter

PLN is an outreach ministry of Make A Way Ministries located in Miami, Florida. It is in its 14th continuous year of publication and has been published faithfully every third Friday since January 1998. It's an e-publication primarily about finances in the Kingdom of God and is sent ONLY to our email list of members. If you're reading this and aren't yet on our growing email list, please let us know and we'll be so very happy to add you.

Sinners' Prayer

If you've never invited Jesus to be the Lord of your life, you need to and you can do it today just by saying out loud the following simple prayer:

Jesus I declare today with all my heart that I believe in you and that God raised you from the dead. I receive forgiveness for my sins and I ask you to come into my life today and be my Lord and Savior. Thank you for salvation and eternal life.

If you were sincere as you prayed this prayer, God has already come into your life and you are a new creation, a totally new species recreated in His image. Now ask the Lord to lead you to a good faith-based, bible-teaching church where you can be equipped to fulfill your potential in the Kingdom of God.

Prayer Requests

If you have a Prayer Request, please connect to the Link below and follow the promptings. The PLN staff members pray over Prayer Requests every Tuesday morning at 10:00 AM eastern time. God bless you.

http://www.creditcounseling.net/prayer-request.aspx

About Prosperous Life Newsletter

PLN is an outreach ministry of Make A Way Ministries located in Miami, Florida. It is in its 14th continuous year of publication and has been published faithfully every third Friday since January 1998. It's an e-publication primarily about finances in the Kingdom of God and is sent ONLY to our email list of members. If you're reading this and aren't yet on our growing email list, please let us know and we'll be so very happy to add you to the list.