brown on green, A Regular column about finances

by David Brown

Dump the Debt!

We are commanded by the Great Commission to reach Jerusalem, Judea, Samaria, and the uttermost parts of the earth. Some will go; others will train those who are going. We all should pray and provide funding. Nations around the world are responding to the Gospel, and many fields are themselves sending missionaries to other unreached people groups. However, Christians in the United States will continue to play a major role in financing global evangelism because they have the largest gross financial capacity.

Unfortunately, many believers have been caught up in the consumerism that drives our economy. Because of this, many who wish to give generously do not have the capacity as a result of poor credit choices. Their debt load does not allow them to give as much as they would like.

Getting out of debt is not easy, but it is possible. The first step is to establish an emergency fund and stop using credit cards unless you pay them off every month. Using the emergency fund keeps you from using credit cards for unexpected expenses. Developing a plan to pay off credit cards is a major first step to becoming debt free.

Most financial planners suggest you concentrate your efforts on one card. Use all your spare cash each month to pay down that card. When it has been paid off, move to the next one, using not only your spare cash but also the minimum payment you had been paying on the first card. Keep repeating this procedure, adding the minimum payments of each new card to the next debt.

This “snowball” affect allows you to progress quickly toward your goal of being debt free. Financial planners differ on how to start. Some say you should start with the credit card that has the highest interest rate so you save the most interest. Others say it is best to start with the card with the largest balance so that you can see a large minimum payment eliminated. Still others believe you should start with the smallest balance because you need to experience a quick victory—that getting out of debt is as much psychology as it is math. You need to know you are making progress which will encourage you to continue.

We have a long ways to go before we reach the lost in North America and around the world. All Christians need to increase their giving capacity, so start dumping the debt today!

Brown on Green is a regular column written by Free Will Baptist Foundation Director David Brown. The column offers financial advice, addresses hot-button business topics, and answers your finance questions. Contact David with your questions.