The world has taken a financial downturn. As a result, many individuals are being affected significantly. My intention, in this three part series, is to help the every day (ordinary) person to manage successfully what he or she earns. In this first presentation, I will address the matter of debt from an every day (layman’s) perspective and not from a business viewpoint.

Rita Celestine-Carty

Debt can be described as:
1. that which is owed to another person or organization.
2. living today on what you expect to receive tomorrow or living on credit.
3. money, goods or services that are owed and the due date for payments are past.
The reason why many get into debt is because we have not educated ourselves as to how we can keep our expenses within our income or we do not carefully work through the maths when making financial decisions. As a result, we get into debt or financial worries. I would therefore encourage that, in these financially challenging times, we avoid debt as a person would avoid AIDS. It is therefore necessary, that we deny ourselves many things, to avoid the trap of debt. Remember the Bible tells us, “the borrower is slave to the lender” Proverbs 22:7 NEB.
If one is in debt, he or she can follow these steps to assist in getting out.
1. Be faithful to God.
2. Make a covenant with God and yourself that you will not advance any further in debt.
3. Make a budget. Ensure that you keep a tab on what you earn and spend.
4. MANAGE CREDIT CARD WELL. The interest is usually high.
5. If you have to purchase anything that depreciates, it is best to use cash.
6. List all your debts in descending order for example:
a. Home mortgage
b. Student loan
c. Medical bills
d. Car loan
e. Credit cards
f. Utilities
g. Merchant
h. Any other
After listing these, maintain your monthly or minimum payments on all. Any additional cash that you have or receive put it towards the smallest debt with the intention of paying it off as soon as possible. If this debt has fixed interest, consult a financier first.
After you are through paying on the smallest debt, your monthly payment for that debt should go towards the next smallest loan. Keep following this pattern and it should assist you in getting out of debt faster.
For anyone who may need further information you can email me at dmphilip_dm@yahoo.com

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