What does the Bible say?

The bible talks a lot about debt – most of the passages are a clear communication on getting out of it fast.

Proverbs 6:4,5 “ Allow no sleep to your eyes, no slumber to your eyelids.  Free yourself from debt, like a gazelle from the hand of the hunter,  like a bird from the snare of the fowler.

Have you watched a nature documentary lately seen how fast a gazelle runs from its hunter?  The bible’s language is pretty vivid and urgent don’t you think?

Now the banks and some mortgage brokers would have you believe that debt consolidation is the best strategy to getting out of debt fast.  They say “wrap everything up into one easy monthly payment on a low interest rate.”  Sounds good doesn’t it?   And it looks good mathematically.

HOWEVER, maths is not what got you into this problem, and the fact is, maths won’t get you out!

The vast majority of my work is based around human behaviour.  We call in neurofinance.

How do we get out of debt?

Getting out of debt is much like losing weight… you need to get some quick wins to keep on the program. In weight loss, loose a few kilos in the first week and you’ll have more motivation to continue.

With getting out of debt, having some quick wins by clearing some debts fast will help keep you on track.

• The first thing you need to do is list all your debts in order of the amount owed.  If you have a Mastercard debt of $1,000 and a Visa debt of $2,000, and a car loan of $10,000 and a mortgage of $200,000… then the Mastercard debt of $1,000 goes at the top – as it is the lowest amount owing.
• You then need to put all debts on minimum payments only… all except the Mastercard.  You’re going to pump every available dollar into paying off the Mastercard as soon as you can – with gazelle like intensity.
• Once the Mastercard is paid off, then you’ll cascade these payments into the next debt, being the Visa card of $2,000.  Once the visa card is gone, the car loan is the target.  You do this until all debts are gone.  This is called a Debt Elimination Plan.

Now this is really important, so listen up… Make sure that you cut up the credit cards BEFORE paying them out so that you’re not tempted to go into more debt by using them again.

Be like a gazelle, and get out of debt fast.  Just think about what life will look like without repayments!

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