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7 Rules for True Riches: Avoid All Debt Except a Mortgage

More than one fourth of Americans say they overspent over the holidays. Did you?

Is it any wonder that The Federal Reserve announced that outstanding credit card debt hit a new high in November. That should be a warning sign for all of us.  Whether you carry debt or not, many of our friends and family are in financial trouble!

The average American household had over $16,000 in credit card debt last year, which cost them $1,300 a year just in interest charges.

#4 of my  7 Rules for Financial Freedom is to avoid all debt except for a mortgage. Even if you do buy a house, I strongly recommend you pay at least 20% for the downpayment to avoid PMI, or Private Mortgage Insurance. And after all other debt is eliminated, pay off the mortgage too!

To avoid any credit card debt, limit yourself to only carrying 1 credit card and never carry a balance. If you ever have a balance you cannot pay in full, then stop carrying that card immediately.

God’s Word teaches us that we need to learn the value of discipline, self control and contentment which helps us to avoid debt and overspending.

But, the media creates discontentment in our society. Excess spending is prevalent and many people shop without considering the long-term consequences. Credit card spending allows instant gratification and prevents the fruit of self-control to mature in believers.

But, self-control is vital to living a debt-free life. It means saying no to car payments, interest, and penalties for late payments. Choosing to adjust your lifestyle and reduce spending are keys to eliminating debt.

Learn to wait before you make a purchase, and limit what you spend your money on. Wear the clothes you have rather than buying new, and don’t feel bad about accepting hand-me-downs for your children.

Stop eating out by simply planning ahead. Sell what you don’t need and cut unnecessary expenses.

Increase your income and apply all bonuses, tax refunds and money saved to your debt.

Pay your bills on time and resolve to avoid all late fees this year. Set specific goals to eliminate debts and plan a victory celebration – to be paid in cash!

And if you’re struggling with overwhelming credit card debt, I want you to get in touch with our partners at Christian Credit Counselors. They’ve helped thousands of people escape the burden of credit card debt and can help you too. For more information, call the Crown Help line at 800-722-1976 or go online to