Debt has become an accepted and prevalent aspect of modern society. Unfortunately, debt essentially enslaves you and can lead to increased stress, anxiety, and strained relationships. At a minimum, any debt should be approached with caution and wisdom.
The good news is there is a better way! Striving for a debt-free life aligns with biblical principles of stewardship, responsibility, honoring commitments, seeking financial freedom, contentment, and trust in God.
If you have decided to take steps to get out of debt in 2026, we want to offer some practical advice to encourage you.
Live within your means: Living debt-free starts with aligning your lifestyle with your financial reality.
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- Live on a realistic budget that includes your income, expenses, and financial goals.
- Cut unnecessary expenses and prioritize essential needs over wants.
- Make it a rule only to make purchases you can afford to pay with cash. Avoid borrowing for anything other than a home mortgage.
- If needed, seek additional sources of income through part-time jobs or side hustles to accelerate your debt-free progress.
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Prioritize paying off all consumer debt: Breaking free from debt requires prioritizing your debt and working on a diligent plan to pay off all consumer debt (everything except your mortgage).
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- Decide on your preferred approach: either paying off debts from the smallest to largest balance (debt snowball method) or from the highest to lowest interest rate (debt avalanche method).
- Make minimum payments on all debts.
- Allocate any extra money each month to pay off the top priority debt as quickly as possible.
- When the first debt is paid off… CELEBRATE! Then repeat for the next debt on the priority list.
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Approach a mortgage carefully: A mortgage can enable the purchase of a home, a fundamental need and an investment for future generations. However, it is vital to approach a mortgage responsibly and exercise caution to ensure mortgage debt remains within reasonable limits.
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- Save up a sizeable down payment, aiming for 10-20% of the home’s value.
- Ensure that your monthly mortgage payment does not exceed 1/4 of your net income. This will help maintain financial stability and allow for progress on other financial goals.
- Consider opting for a 15-year mortgage instead of a 30-year mortgage. While the monthly payments may be higher, you can save significant amounts on interest over the long-term.
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Establishing clear goals is essential for staying motivated on your journey to a debt-free life. Consider your long-term aspirations, such as retiring with financial freedom. Strive for a future with no debt, a paid-off home, and sufficient investments to meet your income needs. A vision of the desired outcome will guide your financial decisions and help you stay focused.
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