MoneyWalk 271: The Best Way To Pay Off Debt

This program will help you undo financial bondage.

Paying your debts off starting with the one with the lowest total balance is the best method for those who need to see quick victories in debt elimination in order to be motivated to keep going down that road. After that bill is paid off then you would move to the next lowest total balance and put all your disposable income, after making minimum payments on all other bills and expenses, toward eliminating that debt. You need to keep doing this until all your debts are paid off as well as refuse to take on more debt in order for your financial situation to turn around and take you into the land of financial freedom. Some studies have surmised that more people stick with debt elimination using this model because a quick victory or two keeps their excitement and drive for financial freedom at a very high level.

The top down bill payment method is a mathematically sound way to pay debts off because it allows you to minimize (to the lowest possible level) the amount of finance charges you pay. As discussed above it may be best for most people to use the lowest total balance method explained above. But for those who will remain motivated the top down method works. I and many people I have served have used it to more quickly reach the land of financial freedom and monetary wealth.

Using this model, you pay only the minimum due on each bill except the one with the highest finance charge. Put all extra disposable income that’s not needed for groceries, gas, and other necessary items with the minimum payment for this account each month until it's paid off. Then its minimum payment plus the extra disposable income is available to pay down the account with the next highest finance charge. Continue this process down the ladder of lower percentage finance charges until each bill is paid off.

If you have more than one account with the same finance charge and the same or different outstanding balances, pay off the one that you will be able to use at many different retailers and borrow cash from in case of an emergency. If both accounts let you do this, then use all of your extra income to pay off the one with the lowest outstanding balance so you can more quickly pare down the number of creditors.

An extra step that could help you eliminate debt faster when using either of these methods is, for debts that would take you more than a year to pay off, to shop a number of financial institutions to find an account with a finance charge (annual percentage rate) that is much lower than what you’re paying now. Make sure it has no early pre-payment penalties and no closing cost / fees that the lower payment will not make up for in the next few months. Then, refinance by transferring the balances on higher interest accounts to these accounts to give you a lower payment overall. Now, in your budget replace the old higher minimum payment with the new lower minimum payment and thank the LORD for showing you methods that can help you reach financial freedom much faster than otherwise possible.

Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!

Deuteronomy 28:12-14, Proverbs 22:7, Luke 16:8, Romans 13:8

Please forward these bondage breaking articles to other people who can use helpful insight!!!

You can find books authored by Randy Parlor and Karen Parlor at www.Amazon.com

You can find many other MoneyWalk articles on facebook by looking at the NOTES created by Randy Parlor at https://www.facebook.com/#!/profile.php?id=100000444069041&sk=notes.

You can also connect with Randy Parlor on Twitter and Linkedin

MoneyWalk 270: Your Reward Is Coming

This program will help you undo financial bondage.

Biblical money management principles help you plan life in a way that will greatly benefit you and your family as you move through the mountain and valley experiences you will face in life. They will keep you focused on giving first, saving next, and spending within reasonable limits to keep you out of the debt and financial struggles that many people have when they do not use such principles. They are engaged by faith and provide a resistance to your natural inclinations that help your faith grow more each day by trusting in the LORD to provide things you need or desire that you do not have cash to purchase, without you going in debt to get them.

Though life can be tough sometimes and struggles and hardships will undoubtedly come your way, using biblical principles makes life better for you and your family because by them you set pre-planned giving and spending levels for each pay period that you will not exceed unless the Holy Spirit specifically directs you to do otherwise. Those operating in faith will find that giving abundantly to support ministry works and usher unbelievers to Him is always on His heart. Thus, blessings and rewards flow to those who by faith commit themselves to be in alignment with His heart for giving to propel the Great Commission in the earth.

Yet, you must also understand that exercising self-control and being willing to sacrifice current pleasures is also on His heart so that you consistently spend far less than the income you make and also save a meaningful portion of your income in order to repel the clutches of materialism and be aware that some things he is calling you to do and situations you will face will require the use of such assets in the future. Many people find that inexplicable promotions, bonuses, and greater income producing opportunities come their way after they consistently employ the principles of stewardship, abundant giving, sacrifice, contentment, and self-control that lead to the use of other principles like debt-elimination, no cosigning, saving & investing, and diversifying assets. They begin to understand that this process is not a pledge of poverty or acceptance of lack, rather it is one that trusts the LORD to provide His very valuable treasures designed for them in due time in the way that is pleasing to Him and most beneficial to them and those they are to be a godly example to.

Accepting Jesus as your Savior and LORD and seeking His kingdom and righteousness is crucial, above all else, in order to rightly use the income, time, and talent He has given you. While daily reading the bible, you'll recognize the ways it shows you how to faithfully honor Him publicly and privately. God will supernaturally bless you beyond what you have envisioned as you pray daily, study the bible daily, give praise to God throughout the day, listen for His instructions, fellowship weekly with other believers, pay tithes, give offerings, and regularly help a church ministry perform its service. Pleasing God is the ultimate desire you should have with a mind toward creating a place where the peace of God and joy in the Holy Ghost permeates your life in the natural and eternal realms. Then and only then will the bulk of your blessings and rewards have maximum usefulness for you and other people.

Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!

Joshua 1:8, Proverbs 3:9-10, Matthew 6:33, Luke 6:38

Please forward these bondage breaking articles to other people who can use helpful insight!!!

You can find books authored by Randy Parlor and Karen Parlor at www.Amazon.com

You can find many other MoneyWalk articles on facebook by looking at the NOTES created by Randy Parlor at https://www.facebook.com/#!/profile.php?id=100000444069041&sk=notes.

You can also connect with Randy Parlor on Twitter and Linkedin

MoneyWalk 269: Control Your Income And Expenses

This program will help you undo financial bondage.

The only way to truly prosper financially is to spend less than you earn so you have money left over to invest for future growth for greater giving and living. It has been said that when your outgo exceeds your income your upkeep will be your downfall and a fool and his money are soon parted. You need to tell the money entrusted to you by God what to do according to His will and design so that circumstances and other voices do not misdirect the money and pillage your and your family’s future.

For the next six months, use a budget to identify your expected income and expenses each month. Getting all your income, debt, and expense information together and drafting your initial budget will take about four hours. The process can be faster if you have a computer or online budget program because you can copy and paste entries you otherwise would have to write down numerous times. Once you've finished your initial budget, it usually takes less than an hour every pay period to maintain your budget and track your results including revising income and bill payments that differ from your original estimates.

If you remain disciplined and conservative in your spending, using as your original income estimate only average net monthly income as the basis for budgeting, then it’s easier to maintain control over your situation so you can reap savings and investment benefits when raises and promotions come your way. On a sheet of paper, enter your average net monthly income. Then, subtract a tithe of your gross income plus an offering. Next, subtract the minimum monthly payment due for each bill that you have, such as mortgage/rent, car note, visa, mastercard, school loans, retail charge cards, gas, electric, water, cable, telephone, etc. The remainder is what you expect to have available for personal expenses, savings, and debt elimination. Personal expenses include groceries, gas, bus fares, clothing, movies, etc.

The moment you know the amount of your next paycheck, you should revise the original estimate for that pay period so you have a more accurate picture going forward of the income you actually have to try pay expenses, give, save, and invest. You should do the same when you know the actual amount of expenses you will have to pay during particular pay periods. Remember, continuing to have categorical expenses that compromise your ability to stay financially solvent is largely up to you based on how much debt you take on in order to have things. You can stop the madness when you decide to do so. The simple process described above helps you maintain the control necessary for financial vitality by encouraging you to write the vision down plainly, know the state of your flocks and herds, and count the cost before building so you can experience greater financial prosperity. You can do all things through Christ that strengthen you.

Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!

Proverbs 27:23-27, Habakkuk 2:2-4, Luke 14:28-32, Philippians 4:11-13

Please forward these bondage breaking articles to other people who can use helpful insight!!!

You can find books authored by Randy Parlor and Karen Parlor at www.Amazon.com

You can find many other MoneyWalk articles on facebook by looking at the NOTES created by Randy Parlor at https://www.facebook.com/#!/profile.php?id=100000444069041&sk=notes.

You can also connect with Randy Parlor on Twitter and Linkedin

MoneyWalk 268: The Only Real Hope

This program will help you undo financial bondage.

Many worldly and religious people will give you advice that arouses carnal desires. This is not compatible with biblical instruction and will lead to spiritual degeneration instead of maturity in Christ. No blessed gain will result from carnal desires. The only lifestyle that produces blessed gain is the willingness to bear your cross daily to follow Christ while enduring ridicule, embarrassment, and persecution. This does not mean that all or most of your life will be filled with pain and suffering, but it does mean that you will stick with your decision to be saved and become more like Christ no matter what comes your way or how much you must endure. Seeing and being with Him in heavenly eternity will more that make up for any struggles you must endure on earth.

Make up your mind to follow scriptural instruction, including biblical money management principles, no matter how bad people around you ridicule them. Such a lifestyle confirms for you and shows other people that your eternal hope is in Christ and is therefore sure. God desires to bless you abundantly to enable you to take care of your true responsibilities while on earth. And, His provision includes options that allow you to enjoy many things that are not true needs but are enjoyable. He simply does not want you to choose any desire that leads to the pursuit and engagement of ungodly options.

When you choose Jesus as Savior and LORD, He seats you in heavenly places far above principalities and powers. Let this reality and the hope (eager and sure expectation) of eternal life move you to live by His commands and principles. Your mindset in all areas, including finance, should not evolve from the lust of the eyes, the lust of the flesh, or the pride of life where you assume that God wants you to have great wealth to heap pleasures upon yourself. Rather, it must evolve from the foundation laid by the chief cornerstone, Jesus Christ, who commands that we use our lives and wealth to glorify Him by abundantly financing the Great Commission and serving other people. This is the only pursuit that truly blesses you.

Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!

Psalm 71:5, Colossians 1:4-5, Hebrews 11:1, 1John 3:3

Please forward these bondage breaking articles to other people who can use helpful insight!!!

You can find books authored by Randy Parlor and Karen Parlor at www.Amazon.com

You can find many other MoneyWalk articles on facebook by looking at the NOTES created by Randy Parlor at https://www.facebook.com/#!/profile.php?id=100000444069041&sk=notes.

You can also connect with Randy Parlor on Twitter and Linkedin