How/why I got into debt
I was born and raised in Cameroon, a country in Central Africa. Being the first born of a string of six kids, I always felt the responsibility to care for my brothers and sisters by the giving them a chance at a better life.
Such an assignment required that I worked hard, depriving myself of many 'luxuries'. Long story short, by the time I was ready to make my second sister come from Cameroon I had put aside enough money to pay for an entire year of tuition plus her plane ticket. However when the time to pay for her school came, I decided to put the money on a credit card for I knew I could reimburse later. And that's how I accumulated my
first big debt, closed to $9,000.00 (nine thousand dollars) on my visa card. Meanwhile to sponsor some trips, I used another credit card to rack up miles. In the pursuit of mileage, the card averaged nearly $4000.00 (four thousand dollars) of debt on AMEX. I also needed to purchase a vehicle and I did what the common American does. I financed the vehicle. And three years down the line I still owed over $8,0000.00 (eight thousands dollars) on it. In total, I had accumulated nearly $21,000.00 (twenty one thousands dollars) in debt in three years. This total doesn't include Best Buy and Kohl's department store's credit cards for I never carried a balance on these cards. However, I would like to mention them just to outline a certain pattern that has started to take shape in my financial life.
How I decided to gazelle intense against my debt
Before I get into how I decided to get rid of my debt with the fury of an angry god, I would like to disclose that I have never paid late or skipped a payment nor have I only paid the minimum. My payments have always been more than the minimum and on time. What got me ticked off was a response from God when we (as a family) were praying about the ministry and other things including finances. God spoke to me and said: "The ministry financial health will be the reflection of your household's finances". It resonated with me, for it meant as prosperous as our personal finances will be, so will be the ministry's. Therefore, if we were negligent or bad steward of the money that God has given us, the same will be reflected in the ministry. Given that we didn't believe in a ministry racking up debt to do the work of God, it was imperative to reflect the same ideology in our finances by getting rid (as soon as possible) of our debt.
Cutting Expenses
We, as a family, decided to cut our expenses. No more eating out, if any, once in 2 months (barely), no more movies, no more (fun) travelling. Then later, we found out it was necessary to budget and give a name to every dollars. The daunting task was to figuring out how much was spent on food, clothing, utilities (this one was easy) and entertainment. Once that was done, we knew how much to allocate for food per month and stick to that amount, meaning we wouldn't go on a spending spree just because we wanted something, although there were still food at home.
When we got our tax return, it did not serve to buy another toy nor did it serve to satisfy our next impulse but we took the bulk of it and 'invest' in our debt reduction goal. 11 months later I'm proud of to announce that we've paid off our debts!!
Challenges & Temptations
The main challenge was to keep consistency and to raise above our impulses. I remember one instance where I went to a department store with a friend who needed to buy some stuffs for her son. While in the store I saw a very cute dress, $15.00 only but it wasn't part of the budget so I close my eyes on it and told myself, there will be many other dresses on sale in the future.
To keep myself motivated, I read many times a day, testimonies of people who had gotten off debt and in the process became a fan of
Dave Ramsey. I read and listened to everything I could related to his baby steps and how to be a winner financially. Visualizing the goal I wanted to achieve kept me going.
Apart from the Lord talking to me, during some introspection I also realized that so many times we, as Christians, pass up many opportunities to do good things just because we're limited in our finances. We want to offer a thoughtful gift but it's quite expensive so we refrain from it. We want to go visit a brother/sister who lives 45 min away but we think about the price of gas. A family member asks you for financial help, you're willing but you're stuck because you have borrowed your life away.The list is exhaustive.
The main temptation we faced, more so I than we for I am the financial analyst/strategist of our household, was to refrain from tithing while getting out of debt. The amount we give in tithes could accelerate the payoff by at least four months. But I have been listening the likes of
David Oyedepo and Bill Johnson who once said that our tithes is like paying our rent to God, for using His air to breath, for enjoying the good health He's given us. Above all, it's a covenant relationship with our Creator. It's an act of love, gratitude and faith towards Him. I really got challenged by Bishop Oyedepo who said (in the video series link above) that since he had received the revelation on tithing, he has
never skipped his tithes even once, and God's records can confirm that. I stuck to my guns and continue to tithe, believing the Lord that all shall be well.
I cut off and closed all the department stores cards and the AMEX. I left open the visa account, then during a casual conversation with a man of God, He said something that had struck the cord with me for I had heard it from the Lord Himself. He said: I really don't like credit cards, if a situation gets tough and requires resources beyond my means, then it's an opportunity to trust God and see what He does.
Often our credit cards become our gods, we trust them in case of an emergency, we sing the God of miracles every single days in our church but we live an atheist life. It's time to change, I decided to change.
A godly decision is never an easy decision and as I often say, it takes God to do a godly thing. We got smart with our money, lived below our means or within our means at best. Trusted God when "impossible" situations arise, and jumped on every good works He has prepared beforehand so we may do them.The ball is always in our court,
never in God's.