One Slaver at a Time

‘Evaluate different ways to pay down debt’

“Trust in the Lord with all your heart, And lean not on your own understanding; In all your ways acknowledge Him, And He shall direct your paths.” Proverbs 3:5-6.

“Commit your work to the Lord, and your plans will be established.” Proverbs 16:3.

A plan to get out of debt must include God. It requires strength, discipline, and avoiding temptation.
“I can do all things through Christ who strengthens me.” Philippians 4:13.
“No temptation has overtaken you except such as is common to man; but God is faithful, who will not allow you to be tempted beyond what you are able, but with the temptation will also make the way of escape, that you may be able to bear it.” 1 Corinthians 10:13.

That said; there are a number of different ways to approach the plan. One plan is pay a little extra each month on every debt. From experience, this plan is difficult to maintain. It is very hard to see ‘progress’, as such, it is not very encouraging. When one climbs a mountain, it is one step at a time, not ‘all at once’. This is not a plan that is recommended. A plan that eliminates one slaver at a time IS recommended.

An orderly plan, that conquers each slaver, individually, one at a time is more encouraging, easier to see progress, and has the benefit of intermediate satisfaction. It is more encouraging, because one is taking ‘little bites’ that make a difference. It is easier to see progress, because one can actually ‘see’ a difference. There is intermediate satisfaction by achieving the goal of getting rid of one debt at a time. One gets to ‘celebrate’ as one is freed from each slaver.

Evaluate plans. Start by listing all the creditors one has. List the amount owed, minimum monthly payment, and interest rate. These three elements become the basis to form a plan and make decisions. Using the three elements consider options.
1. Largest Debt first
2. Highest Interest rate first
3. Smallest Debt first
(Smallest interest rate first just does not make sense - getting rid of the debt that is costing the least, costs more [unless this happens to be the slaver one is eliminating because of another plan]. There are other possibilities; these three are the obvious ones.)
Remember to keep the ‘plan’ simple. One does not have to put together some elaborate plan to ‘pay the bills’. The more complicated a plan is, the easier it is to mess up.

Paying off the largest debt first (probably a mortgage or a car loan) has some distinct disadvantages. One must still pay all the finance charges to all the other creditors. One does not ‘see’ ‘accomplishing the goal’ as well. There is no ‘immediate’ gratification. Usually the mortgage and car loans usually have the lowest interest rates.

It is recommended that one choose to pay off debt by either highest interest rate or smallest debt first.

Use smallest debt first as an example. One determines to pay each slaver the ‘minimum amount due’. In addition to the minimum amount due, on each of the slave accounts other than the smallest, add $1.00 to the minimum amount due. This is the money that we have ‘freed’ from cutting expenses, and learning thrift. Apply ALL the rest of the ‘freed’ money (preferably more than twice the minimum amount due) to paying off the smallest debt. That means, if the smallest debt has a minimum due of $10 each month, pay at least $20, more if one has managed to ‘free’ more. Apply all of it to the debt. If one has managed to ‘free’ $100 by cutting expenses, and thrift, then pay $110 to the smallest debt each month, until paid in full. Once paid in full close the account¹. Ensure before closing the account to cancel any ‘automatic’ payments made from the account (such as automatic billing for internet subscriptions). When the account is closed, celebrate, praise the Lord, then set your sights on the next ‘Goliath’. Take ALL the money (the $110) that one has used to apply it to the next smallest (now the smallest) slave account. Say that account has a minimum payment required of $25. One has been paying $26 while paying off the first slaver. Now one is paying $136 on this account. Notice the ‘snowball effect’. As each slaver is paid, the amount applied to the next slaver account increases. By the time the last slaver is paid, this amount of money is not only considerable - it becomes ‘disposable income’. (One gets to spend it!)

One has seen the plan for paying the smallest creditor first. Write the plans for paying the largest slaver first and highest interest rate slaver first. Use the template of paying off each creditor, one at a time.

Now, instead of using ‘example’ money, use the actual numbers from one’s budget and creditors. Do this for each plan. Once this is accomplished, evaluate each plan. Determine which plan is the most ‘doable’. Take into account one’s own attitudes, outlook, determination, and desire. One plan will appear more appealing just based on ‘self’. Pray about it.

“Be anxious for nothing, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God;” Philippians 4:6.



¹Remember, do not close the account until the payment posts. Use the toll free number or the internet to verify the posting. Many accounts charge additional fees for closing an account where a balance still exists.