National debt is at an all-time high. Not only national debt. American household debt hit a record $16.9 trillion at the end of 2022, up $2.75 trillion. Unfortunately, it seems to only be escalating each year, with little hope for change. With God there is always hope, for with God, all things are possible. Nothing is impossible to those who believe. Even for debt freedom.

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Perhaps today you find yourself crushed by a mountain of debt that seems impossible to overcome. I understand, I have been there. However, I found that it is indeed possible to live debt free. The first step. Only believe.

There are many practical tips to become debt free, but one thing is needed first. You must change your mindset. Most of us have been taught we cannot live debt free. That debt is a way of life. It is not. Therefore, we must transform our mind to the truth that God wants us totally free, that includes debt. Your belief will absolutely affect your outcome.

For as he thinks in his heart, so is he (Prov 23:7, NKJV.)

And do not be conformed to this world, but be transformed by the renewing of your mind, that you may prove what is that good and acceptable and perfect will of God (Rom 12:2, NJKV.)

Can you imagine yourself debt free?

I do believe this will play a big part in whether you become free of debt or not. Our imagination is a powerful force. One we should use for our good. Take time each day to stop and visualize yourself being free of all credit card debt. How would that feel? Imagine yourself in a debt-free home. What would that allow you to do for yourself and your family? Use your imagination to help create the desire you have to become free from all debt. Draw a line in the sand and begin to declare you are debt free, once and for all.

Finally, brethren, whatever things are true, whatever things are noble, whatever things are just, whatever things are pure, whatever things are lovely, whatever things are of good report, if there is any virtue and if there is anything praiseworthy—meditate on these things (Phil 4:8, NKJV.)

Ask God to Show the Way Out of Debt

Once you have your mind set to debt freedom, your next step is to inquire of the Lord. One thing I loved about King David is he never went into a battle or challenge believing what worked in the previous season would work in his current challenge. He always inquired of the Lord. (see 1 Sam 23,30, 2 Sam 2,5.)

While there are practical steps to becoming debt free, what works for one person may not work for you. Therefore, you must seek the Lord, inquire of Him. Ask Him to show you the way out of debt. It will increase your faith to hear from God and proceed in HIS plan instead of trying to work it out on your own, or by doing what someone else did. When God is in our plan, there is no way we can lose.

2 Chronicles 26:5 says, and as long as he sought the Lord, God made him prosper. The same applies to us, as long as we seek God, He will cause us to prosper. Remember, He wants you debt free, even more than you want to be. He will lead you, guide you and equip you to become free in your finances. Inquire of Him. Get His plan and then begin to work on that plan. Be patient. It took time to get into debt. It will take time to get out of debt. Don’t become discouraged, just keep working on the plan. If you have a setback, get right back up and begin again. Don’t allow anything to stop you.

But let patience have its perfect work, that you may be perfect and complete, lacking nothing (James 1:4, NKJV.)

The Amplified says it like this: But let endurance and steadfastness and patience have full play and do a thorough work, so that you may be [people] perfectly and fully developed [with no defects], lacking in nothing.

Steadfastness and patience will be one of your keys to victory.

Practical Steps to Debt Freedom

First, create your safety net. No, it is not a credit card for emergencies. Put enough money in savings for any unexpected emergencies. Most people will tell you that amount needs to be $1,000. I would have agreed a few years ago. However, recently I had to replace a hot water heater and it cost over $1500.00. Therefore, pray and seek God about the amount He would have you place in an emergency fund, but save at least $1,000.00. Set it aside and refuse to touch it for anything except emergencies. (Editor’s note: In IFA’s county, hot water heaters are $2700 to install. The Lord will show you how much to set aside.)

I remember many years ago when I decided to pay off all my debt. I had no savings at the time. Saving $1,000 seemed impossible. However, I worked at it each week. Before I knew it, I had my emergency fund set aside. Now, I could begin to attack the debts.

Once your safety net is in place, make a list of all your debts, from the smallest to the largest. Begin to pay off the smallest debt. Once that one is paid, apply the amount you paid on that debt to the next debt, until it is paid in full. And so forth and so on. It is called the snowball effect. Some of the larger debts may seem impossible or discouraging, but just keep working at it. You will be pleasantly surprised at the confidence you gain as each debt is paid in full.

Perhaps at this point you are thinking, “But I have no extra money to apply to debts.” Are you sure about that? Take a month and write out everything you spend. Everything. Where can you cut costs? What can you give up? If you want something different, you must do something different. Maybe instead of eating out daily, you can take a lunch and apply that amount to your debt. It will make a difference. If you really want victory, you must stop doing what you have always done and embrace the changes that will empower you to become debt free. If debt freedom is your true goal, you will do whatever it takes to get you there. This I know from experience.

In addition to cutting costs, there are other things you can do. Perhaps you are crafty. You could make and sell crafts to pay off bills. Or you could have a yard sale and apply that to debt. I have a friend who wanted to pay off her vehicle in one year. It seemed impossible. However, she began to do little things, sell some items, and apply it to her vehicle loan. Each time extra money came into her hands, no matter how small, she would pay the extra on her vehicle. Some weeks it was only $10, but she remained faithful. The amazing thing is as she was faithful to attack her debt, the monies coming in began to snowball. In the end, it was paid in full a few months earlier than she hoped. What happened? She was faithful to seek God, follow His plan and He added His “super” to her “natural” and her debt was paid in full. Praise God. She had determined to do whatever it took to pay off her loan, and she did.

You can do it too! You can go from being crushed by a mountain of debt to rising above it and becoming debt free. Of course, with God all things are possible. However, we have a part to play. A big part. First, change our way of thinking. Second, inquire of the Lord, Third, secure a safety net of emergency funds. Finally, attack the debt with patience and steadfastness.

Remember, Jesus came to set the captives free. That includes you and that includes debt.

Intercessor, are struggling with debt? Do you know someone who is struggling? Share this article to remind people that the Lord sets the captives free!

Kim Potter is a writer and the founder of A New Thing Ministries, which sends a daily teaching to thousands of people all around the world. Her articles have appeared on The Elijah List, in Charisma Magazine, and on Spirit Fuel and iBelieve.com. Kim’s message is one of hope. She speaks to the hearts of those who have grown discouraged or disappointed by the circumstances of life, to impart hope. Her daily inspirational writings are available at www.anewthingministries.com. Photo Credit: doucefleur/doucefleur’s images via Canva Pro.