The Bible does not tell us that it is a wrong to borrow or that it is wise. But it also does not tell us that God will bail us out of our debt either. So how do we handle debt?
Debt can fell like a never-ending cycle leaving us feeling stuck. In other words, debt is just a distraction. Jesus wants so much more for our lives. Debt dictates to us what we have to do instead of what we are called to do.
Today, student loans are one of the largest debts that hang over many Americans causing so much unwanted stress in households. Most student loans are multiple loans all wrapped up under one statement. If you don’t know where to begin, breaking down the statement can feel a little overwhelming. Normally we pay the amount the loan provider tells us to. Minimum payments are mostly interest paid to the highest rate loan first then a few dollars to principal.
3 Ways to Tackle Student Loan Debt
Take time to review your budget
Check to see what is left over after all bills are paid so you know how much extra can be used to pay down your debt.
Review your student loan statement
Write out each loan with the amount owed and the interest rate on that loan. Add this to your budget each month. Keep a focus on what debt you are trying to eliminate.
Sign into your student loan account online
Each month make the minimum that is asked from the provider. Then with the extra you have in your budget each month set an amount you will use to pay towards the principal to one of the student loans. Start with the smallest loan amount first. This will allow you to see debt decreasing faster which will keep you motivated to eliminate the rest.
These also work if you are in school and have deferred loans. Your loans are incurring interest daily. Even though you are not receiving a bill each month, you can still sign in to your online portal. Since the loan is deferred, each payment can be applied to principal decreasing interest cost and the amount that you owe.
Give to everyone what you owe them: Pay your taxes and government fees to those who collect them, and give respect and honor to those who are in authority. Owe nothing to anyone – except for your obligation to love one another. Romans 13:7-8 (NLT)
No matter what type of debt` you have, these same principles can help you eliminate what you owe. As we make decisions throughout our life God does not want us to trust in our own understanding. Instead He asks for us to lean into Him with reflection and prayer, transforming our hearts so we can change the way we think.
Do you have tips that may help others pay off their student loan debts? Share in the comments!